symbol
stringlengths 1
9
| title
stringlengths 1
701
| text
stringlengths 1
140k
|
|---|---|---|
C | FTSE gains ahead of Greece talks EC bonds comment | FTSE 100 up 1 6 pct
Banks firm on Barroso euro bond comments
Next jumps on raised profit guidance
BP up ahead of Macondo Gulf oil spill report
By Tricia Wright
LONDON Sept 14 Reuters Britain s FTSE 100 share
index rose on Wednesday after comments from European Commission
President Jose Manuel Barroso promising new moves to alleviate
the euro zone debt crisis as investors awaited talks between
Greece France and Germany
Barroso said the Commission will soon present options for
the introduction of euro area bonds though he warned financial
markets would only trust that the euro zone can resolve the
crisis when it shows that it can deliver on its commitments
The index was up 82 97 points or 1 6 percent at 5 257 22
by 1127 GMT having gained 0 9 percent on Tuesday
Investors awaited a conference call on Wednesday by Greek
Prime Minister George Papandreou with French President Nicolas
Sarkozy and German Chancellor Angela Merkel although traders
merely anticipated further rhetoric
I suspect expectations are riding high that we will see a
rabbit pulled from a hat at the meeting later today Darren
Sinden senior sales trader at Silverwind Securities said
China and the United States have urged Europe s leaders to
prevent the euro area debt mess from spreading underlining the
international alarm over a crisis now threatening Italy the
zone s third biggest economy
This came as Citigroup economists argued that a Greek exit
from the euro area should be avoided at all costs cautioning
that it would result in a crisis for the world
Andrew Bell chief executive of the 1 1 billion pound Witan
Investment Trust reckoned Europe will in fact get a grip on
the Greek situation
A combination of ECB buying bonds unquestioning provision
of liquidity to the banking sector and a weaker euro all of
which are likely to happen look to be key ingredients in
restoring confidence he said
Markets might become impatient at Europe taking another few
weeks to sort out something so urgent but equity markets look
more likely to rally on any positive developments than to fall
significantly simply because of a delay
Banks normally the most sensitive to the
twists in the euro zone debt story found favour led higher by
Royal Bank of Scotland up 6 4 percent while Barclays
added 3 8 percent
The sector had initially come under pressure after Moody s
Investors Service downgraded credit ratings on Credit Agricole
and Societe Generale by one notch as
expected citing their exposure to the Greek economy
Bargain hunting was behind much of the buying seen in the
market with beaten down energy stocks and miners
in demand on Wednesday despite weaker crude
and metals prices
BP rose more than 4 percent and was among the top
FTSE 100 gainers after a report fuelled hopes a U S probe into
the U S Gulf oil spill would spread the blame thereby limiting
BP s liabilities
A London based trader said a report in the Wall Street
Journal citing a person who had seen the keenly awaited report
into the probe was fuelling the gains
Analysts have said the report could be a catalyst for BP s
recovery as it would enable investors to assess whether BP will
be found grossly negligent something on which tens of
billions of dollars worth of fines and penalties hinge
Next grabbed the top spot on the blue chip leader
board up 6 8 percent as Britain s second biggest fashion
retailer raised its full year profit guidance after posting an
8 5 percent rise in its first half profit
Sentiment in the sector was aided by the news Kingfisher
ahead of results on Thursday added 4 5 percent while
Marks Spencer firmed 3 percent
On a valuation basis again we are seeing some buying into
risk with banks and miners among top risers and with positive
news from Next this morning we are seeing buying back into
retail given the recent sell off in that sector director of
Trading Equities Derivatives at Guardian Stockbrokers said
U S stock index futures pointed to a
mixed opening on Wall Street on Wednesday ahead of producer
price index retail sales and business inventories data
For related prices Reuters Terminal users may click on
UK stock report
FTSE index 0 FTS6
techMARK 100 index FTSE futures 0 FFI
Gilt futures 0 FLG Smallcap index
FTSE 250 index FTSE 350 index
Market digest Top 10 by vol
Top price gainers Top gainers
Top price losers Top losers
For related news click on
UK hot stocks HOT GB Wall Street
Gilts report Euro bond report
Pan European stock report
Tokyo stocks HK stocks
Sterling report Dollar report
For company prices click on
Company directory By sector
For pan European market data and news click on
Daily European stocks report
European Equities speed guide
FTSE Eurotop 300 index
DJ STOXX index
Top 10 STOXX sectors
Top 10 EUROSTOXX sectors
Top 10 Eurotop 300 sectors
Top 25 European pct gainers
Top 25 European pct losers
Editing by Greg Mahlich |
C | Natural gas futures fall to 6 month low on U S demand outlook | Investing com Natural gas futures were down for a second day on Wednesday falling to a six month low as mild autumn weather continued to pressure prices lower On the New York Mercantile Exchange natural gas futures for October delivery traded at USD3 758 per million British thermal units during U S morning trade tumbling 1 05 It earlier fell as much as 1 29 to trade at USD3 736 per million British thermal units the lowest price since March 7 The Commodity Weather Group said in a report on Tuesday that it expected seasonably normal temperatures across most parts of the U S Midwest East Coast and South through late September We do not see any significant demand concerns this period the weather group said in a report Demand was also expected to slow in Texas where temperatures were forecast to ease from recent highs with industry weather group MDA Federal expecting cooler than usual weather throughout the state in the coming week Natural gas futures often reach a seasonal low in October when mild weather reduces demand before recovering in the winter when heating fuel use peaks Meanwhile natural gas traders were eyeing a low pressure storm system in the central Atlantic However computer models showed that the storm was likely to weaken as it headed into the Caribbean Wall Street lender Citigroup said in a report earlier that Natural gas prices are likely to remain under pressure in the coming weeks barring an unusual bout of cold weather triggering gas fueled heating demand or a storm in the Gulf of Mexico production area Markets were looking forward to the U S Energy Information Administration s weekly report on U S natural gas stockpiles for the week ended September 16 on Thursday The report was expected to show that U S natural gas inventories increased by 90 billion cubic feet after adding 87 billion cubic feet in the preceding week Natural gas stockpiles rose by 78 billion cubic feet in the same week a year earlier while the five year average change is a buildup of 72 billion cubic feet Elsewhere on the Nymex light sweet crude oil futures for delivery in November slipped 0 04 to trade at USD86 82 a barrel while heating oil for October rose 0 81 to trade at USD2 976 per gallon |
C | Natural gas futures jump to 3 day high on U S weather outlook | Investing com Natural gas futures regained strength on Monday pulling away from close to an 11 month low as warmer than normal weather forecasts across the Southern U S states boosted demand expectations for the fuel On the New York Mercantile Exchange natural gas futures for October delivery traded at USD3 842 per million British thermal units during U S morning trade jumping 2 02 It earlier rose as much as 2 2 to trade at USD3 853 per million British thermal units the highest price since September 21 The October contract hit an 11 month low of USD3 662 a million British thermal units on Thursday The Commodity Weather Group said earlier that it forecast warmer than normal temperatures across the Southern U S states through September 28 which should trigger some late season cooling demand According to weather service provider AccuWeather Houston and Dallas may reach highs above 100 degrees Fahrenheit 37 Celsius on September 28 The CWG added that cooler weather across the U S Midwest and Eastern states could boost early heating demand through the first week of October with temperatures expected to be at least 3 to 5 degrees cooler than average from October 1 to October 5 Natural gas prices have closely tracked weather forecasts in recent weeks as traders try to gauge the impact of shifting forecasts for late September and October on heating and cooling demand Despite the strong gain Wall Street lender Citigroup said in a report earlier that Natural gas prices are likely to remain under pressure in the coming weeks barring an unusual bout of cold weather triggering gas fueled heating demand or a storm in the Gulf of Mexico production area Natural gas futures often reach a seasonal low in October when mild weather reduces demand before recovering in the winter when heating fuel use peaks Elsewhere on the Nymex light sweet crude oil futures for delivery in November shed 0 49 to trade at USD79 45 a barrel while heating oil for November slipped 0 12 to trade at USD2 812 per gallon |
C | Fiscal Uncertainty Undermining Muni Markets | The US fiscal negotiations are putting pressure on the muni bond markets The tax hoopla has depressed municipal bonds with high grade 10 and 30 year munis comparably yielding as much as taxable Treasury securities at 1 79 and 2 73 respectively writes Randall W Forsyth for Barron s According to reports from trading desks bids have become more scarce as a greater number of investors are sitting on the sidelines and waiting it out as the fiscal cliff goes down to the wire Congress has reportedly proposed levies on high income investors in munis as part of of the deficit plan More pessimistic muni observers are wondering if taxes could be imposed retroactively on tax exempt securities George Friedlander of Citi though believes this is a pernicious concept that could destroy confidence in the federal government s ability in the capital markets The fact that there s support on both sides of the table is what freaked people out said George Friedlander managing director and chief municipal bond strategist at Citigroup Fund flows into munis have slowed to a trickle Once again some zealous politicians who wish to tax rich people are simply going to transfer funds from municipalities to the federal government in an inefficient manner Friedlander has also pointed out that if there were a limit to the value of tax exemption on munis to up to a 28 cap yields would rise 0 4 to 0 6 which would devalue munis by 200 billion Looking at the recent correction in muni ETFs the potential tax hikes may have already been priced in Indeed the market has corrected from the peak reached at the end of November as the chart for NY munis shows Ultimately whatever politicians decide to do they need to get it done soon in order to return some certainty into this market Otherwise they simply end up hurting municipalities around the nation who rely on this market for funding |
C | Weekly Outlook For Silver January 8 2013 | INTRADAY CHART8th January Last week s deeper correction to 31 49 has forced a slight change to the bearish structure Certainly both daily and intraday momentum remain bearish Thus we should now see Wave c iii develop to reach the 298 4 projection at 28 67 98 4 in Wave c This should generate a deep 45 50 retracement in Wave iv and then the Wave v can target the 298 4 projection in Wave iii at 28 16 With Wave ii being 66 7 we can expect between 23 6 33 3 retracement in Wave iv and then for the Wave v to extend to the 161 8 194 4 projection in Wave c at 27 51 and probably 26 13 Only a break above 31 49 will suggest a more complex structure and potential for a deeper move higher RATIO TABLE |
JPM | JPMorgan s Jamie Dimon Bitcoin Will Be Stopped | By Leon Pick
JPMorgan N JPM CEO Jamie Dimon believes that Bitcoin s prospects for survival as a currency are poor consistent with previous comments he has made on the matter
Responding to a question from the audience at the Fortune Global Forum yesterday Dimon said Virtual currency where it s called a bitcoin vs a U S dollar that s going to be stopped No government will ever support a virtual currency that goes around borders and doesn t have the same controls It s not going to happen As CEO of the biggest bank in America which has not escaped its fair share of controversy over the years Dimon s comments on Bitcoin and other hot issues often attract much attention
Dimon previously commented that bitcoin as a currency is a terrible store of value On the potential threat it poses to banks he said in 2013 that Bitcoin developers are going to try and eat our lunch and that s fine adding that that s called competition and we will be competing
Earlier this year he acknowledged the threat posed by Bitcoin and other emerging technologies to the traditional banking model During a conference call with shareholders he mentioned that the bank is examining its competitors in excruciating detail
On the potential for Bitcoin s blockchain technology and others inspired by it he is more optimistic Blockchain is like any other technology If it is cheaper effective works and secure then we are going to use it he said at the Fortune event Several weeks ago he commented that most banks are probably looking at the technology by now including his own |
JPM | Square IPO Stock Jumps 30 In Market Debut | By
Within minutes of its Wall Street debut shares of Square N SQ were trading at above 13 per share a 40 percent pop over its initial offering price of 9
The payments company launched by Twitter N TWTR co founder Jack Dorsey hit some potholes in its approach to an initial public offering this week The company priced at an underwhelming 9 per share late Wednesday missing an anticipated price range for a valuation of 2 9 billion far short of the 6 billion valuation that private investors sought in previous funding rounds
The less than stellar launch comes as public investors have grown skeptical of the sticker price on Silicon Valley s 140 plus unicorns or private companies valued at over 1 billion even as private investors continue pouring millions of dollars into promising tech ventures
Increasingly those private investors are inking deals that ensure profits even if the company whiffs its IPO Such provisions called ratchets meant Square had to pay out some 93 million in extra shares to late stage investors including JPMorgan Chase Co N JPM that had expected Square to open at more than double the price that it did
According to S P Capital Insights the average tech IPO in the second half of 2015 experienced a one day pop of more than 13 percent
Coincidentally another company went public valued at 2 9 billion Thursday Match Group MTCH the online dating empire responsible for Tinder and OKCupid was priced at 12 per share before its public open |
HAL | Trading Chances AUD CAD AUD JPY Macerich MAC And Halliburton HAL | AUD CAD
In this forex pair we can see a very young uptrend in the medium trend size The last correction led the price deep down into the green correction zone At the lower edge enough buyers appeared to create the next move Yet the price fell back down over and over again and the trend was unable to continue up until now But the DowHow signals are still valid and we have the chance to speculate on a trend continuation once more With regard to a long trade the stop should be placed below the green zone
AUD JPY
In this pair we have a similar occurrence By means of the last DowHow signals we were able to see that the recent increase led the price up to the last point two at 86 40 JPY and has created a new point two at 86 67 JPY After this the price fell back into its correction zone but not too far and it attempted a new increase immediately However the trend was unable to continue since we do not have a close above 86 76 JPY This means that the current correction zone between 86 40 JPY and 83 90 JPY still remains valid As we can observe now with the most recent green candles we have received a new DowHow signal and we are able to start a new attempt at a long trade A stop should be placed below the green zone and the first target should be located at the last point two at 86 67 JPY
Macerich Company NYSE MAC
In this value we come across a very interesting situation First we see a young downtrend with a correction zone between 74 55 and 82 88 on the upper side In the meantime the price has corrected deep into this zone and then bounced at the visible upper trend line of this current trend channel Here we can speculate that enough sellers will appear to ensure that we see a trend continuation As you can see I have placed a short order with a stop above the red zone
Halliburton NYSE NYSE HAL
My short trade begins with today s opening I am trading the medium trend size here and speculating on a trend continuation because as Charles Dow argued a trend continuation is more likely than a trend break but only if the trend is not too mature yet We will see if this trade works well
For presentation purposes the trading software AgenaTrader has been used
Disclaimer Exchange transactions are associated with significant risks Those who trade on the financial and commodity markets must familiarize themselves with these risks Possible analyses techniques and methods presented here are not an invitation to trade on the financial and commodity markets They serve only for illustration further education and information purposes and do not constitute investment advice or personal recommendations in any way They are intended only to facilitate the customer s investment decision and do not replace the advice of an investor or specific investment advice The customer trades completely at his or her own risk Please refer to the current version of the Terms and Conditions |
HAL | Avoiding Cheap Value Stock Cigarette Butts | Too many investors hang their hat on investments that seem cheap Unfortunately too often something that looks like a bargain turns out to be a cigarette butt from which investors are hoping to take a last puff As the old adage states you get what you pay for and that certainly applies to the world of investments There are endless examples of cheap stocks getting cheaper or in other words stocks with low price earnings ratios going lower Stocks that appear cheap today in many cases turn out to be expensive tomorrow because of deteriorating or collapsing profitability
For instance take Halliburton Company NYSE HAL an energy services company Wall Street analysts are forecasting the Houston Texas based oil services company to achieve 2016 EPS earnings per share of 0 32 down 79 The share price currently stands at 37 so this translates into an eye popping valuation of 128x P E ratio based on 2016 earnings estimates What has effectively occurred in the HAL example is that earnings have declined faster than the share price which has caused the P E to go higher If you were to look at the energy sector overall the same phenomenon is occurring with the P E ratio standing at a whopping 97x at the end of Q1
These inflated P E ratios are obviously not sustainable so two scenarios are likely to occur
The price of the P E numerator will decline faster than earnings denominator
AND OR
The earnings of the P E denominator will rise faster than the price numerator
Under either scenario the current nose bleed P E ratio should moderate Energy companies are doing their best to preserve profitability by cutting expenses as fast as possible but when the product you are selling plummets about 70 in 18 months from 100 per barrel to 30 producing profits can be challenging
The Importance of Price or Lack Thereof
Similarly to the variables an investor would consider in purchasing an apartment building price is supreme With that said price is not the only important variable As famed investor Warren Buffett shrewdly notes the quality of a company can be even more important than the price paid especially if you are a long term investor
It s far better to buy a wonderful company at a fair price than a fair company at a wonderful price
The advantage of identifying and owning a wonderful company is the long term stream of growing earnings The trajectory of future earnings growth more than current price is the key driver of long term stock performance
Growth investor extraordinaire Peter Lynch summed it up well when he stated
People concentrate too much on the P but the E really makes the difference
Albert Einstein identified the power of compounding as the 8th Wonder of the World which when applied to earnings growth of a stock can create phenomenal outperformance if held long enough Warren Buffett emphasized the point here
If you aren t willing to own a stock for ten years don t even think about owning it for ten minutes Put together a portfolio of companies whose aggregate earnings march upward over the years and so also will the portfolio s market value
Throw Away Cigarette Butts
I have acknowledged the importance of aforementioned price but your investment portfolio will perform much better if you throw away the cigarette butts and focus on identifying market leading franchises that can sustain earnings growth The lower the growth potential the more important price becomes in the investment question see also
Here are the key factors in identifying wining stocks
Market Share Leaders If you pay peanuts you usually get monkeys Paying a premium for the 1 or 2 player in an industry is usually the way to go Certainly there is plenty of money to be made by smaller innovative companies that disrupt an industry so for these exceptions focus should be placed on share gains not absolute market share numbers
Proven Management Team It s nice to own a great horse i e company but you need a good jockey as well There have been plenty of great companies that have been run into the ground by inept managers Evaluating management s financial track record along with a history of their strategic decisions will give you an idea of what you re working with Performance doesn t happen in a vacuum so results should be judged relative to the industry and their competitors There are plenty of incredible managers in the energy sector even if the falling tide is sinking all ships
Large and or Growing Markets Spotting great companies in niche markets may be a fun hobby but with limited potential for growth playing in small market sandboxes can be hazardous for your investment health On the other hand priority 1 2 and 3 should be finding market leaders in growth markets or locating disruptive share gainers in large markets Finding fertile ground on long runways of growth is how investors benefit from the power of compound earnings
Capital Allocation Prowess Learning the capital allocation skillset can be demanding for executives who climb the corporate ladder from areas like marketing operations or engineering Regrettably these experiences don t prepare them for the ultimate responsibility of distributing millions billions of dollars In the current low negative interest rate environment allocating capital to the highest return areas is more imperative than ever Cash sitting on the balance sheet earning 0 and losing value to inflation is pure financial destruction Conservatism is prudent however excessive piles of cash and overpaying for acquisitions are big red flags Managers with a track record of organically investing in their businesses by creating moats for long term competitive advantage are the leaders we invest in
Many so called value investors solely use price as a crutch Anyone can print out a list of cheap stocks based on Price to Earnings Enterprise Value EBITDA or Price Cash Flow but much of the heavy lifting occurs in determining the future trajectory of earnings and cash flows Taking that last puff from that cheap value stock cigarette butt may seem temporarily satisfying but investing in too many value traps may leave you gasping for air and force you to change your stock analysis habits
Disclosure Sidoxia Capital Management SCM and some of its clients hold positions in certain exchange traded funds ETFs but at the time of publishing had no direct position in HAL or any security referenced in this article No information accessed through the Investing Caffeine IC website constitutes investment financial legal tax or other advice nor is to be relied on in making an investment or other decision |
C | FOREX Dollar rises vs yen and franc on US economic data 2 | Currency bid prices at 1 15 p m EDT 1715 GMT
Last US Close Pct YTD Pct 2010
Aug 26 Change Change Close
Euro dlr 1 4506 1 4497 0 06 8 44 1 3377
Dlr yen 76 940 76 600 0 44 5 19 81 150
Euro yen 111 60 111 13 0 42 2 73 108 63
Dlr swiss 0 8173 0 8060 1 40 12 45 0 9335
Stg dlr 1 6396 1 6370 0 16 5 11 1 5599
Dlr cad 0 9791 0 9814 0 23 1 77 0 9967
Aus dlr 1 0617 1 0568 0 46 4 06 1 0203
Euro swiss 1 1857 1 1689 1 44 5 05 1 2488
Euro stg 0 8846 0 8854 0 09 3 20 0 8572
Nzd dlr 0 8438 0 8389 0 58 8 30 0 7791
Dlr Norw 5 3500 5 3651 0 28 8 10 5 8218
Euro Norw 7 7610 7 7808 0 25 0 37 7 7895
Dlr Swed 6 2935 6 2833 0 16 6 20 6 7098
Euro Swed 9 1324 9 1196 0 14 1 69 8 9809
All spots
Tokyo spots
Europe spots
Volatilities
Tokyo Forex market info from BOJ
World central bank news CEN
Economic Forecasts Official rates INT RATE
Forex Diary MI DIARY Top events M DIARY
Diaries DIARY Diaries Index IND DIARY
Press Digests PRESS Polls on G7 economies SURVEY
European markets MARKETS |
C | PRECIOUS Gold steady ahead of U S payrolls | Gold rangebound as investors wait for clear direction
Coming up U S Aug non farm payrolls 1230 GMT
Updates prices
By Rujun Shen
SINGAPORE Sept 2 Reuters Gold prices held steady on
Friday as investors stood on the sidelines ahead of a key U S
payrolls report due later in the day after recent data sent
mixed signals about the status of the world s largest economy
Caution is likely to prevail before the key U S August
employment report is released at 1230 GMT Nonfarm payrolls are
expected to have increased 75 000 slowing from July s 117 000
rise according to a Reuters survey
A big surprise in the jobs data could move gold prices up or
down Short of a huge discrepancy with forecasts however many
players will continue to try to ride the middle ground
Gold seems to have a trading band of 1 810 and 1 840 and
is unlikely to break the range ahead of the payrolls data said
David Thurtell a Citigroup analyst
Spot gold edged up 0 3 percent to 1 829 21 an ounce
by 0634 GMT little changed from a week earlier
U S gold inched up 0 2 percent to 1 832 30 headed
for a weekly gain of 1 9 percent
Investors will keep an eye on inflation figures from China
next week to gauge the progress of Beijing s battle against
rapidly rising prices while a two day policy meeting of the
U S Federal Reserve starting Sept 20 will also be in the
spotlight
Financial market participants are eager to learn if the Fed
plans to launch more stimulus plan to spur the ailing economy
Latest data showed unexpected growth in the U S
manufacturing sector in August and fewer jobless claims last
week despite a slump in confidence that threatened to push the
economy back into recession
Uncertainties around global growth have sent anxious
investors to the safety of gold Bullion prices surged about
400 in July and August in a record setting rally
Given the current economic circumstances I don t think
anything is going to change any time soon said Gavin Wendt
senior resources analyst at Minelife an Australia based
research firm
Gold is the place to be as far as investors are concerned
Prices are going higher there s no doubt about that It s not
only about making money in this environment but also about
wealth preservation
Spot silver gained 0 4 percent to 41 60 headed for
a 0 2 percent rise from a week earlier
Bolivia the world s sixth largest silver producing country
by output in 2010 plans to raise mining royalties to take
advantage of high prices and bolster the state s role in the
industry
Precious metals prices 0634 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1829 21 4 66 0 26 28 87
Spot Silver 41 60 0 16 0 39 34 80
Spot Platinum 1842 49 1 36 0 07 4 24
Spot Palladium 779 99 0 64 0 08 2 44
TOCOM Gold 4527 00 29 00 0 64 21 40 52087
TOCOM Platinum 4594 00 32 00 0 69 2 17 9819
TOCOM Silver 102 60 0 80 0 79 26 67 474
TOCOM Palladium 1947 00 5 00 0 26 7 15 943
COMEX GOLD DEC1 1832 30 3 20 0 17 28 91 8659
COMEX SILVER DEC1 41 68 0 14 0 34 34 70 1368
Euro Dollar 1 4237
Dollar Yen 76 81
TOCOM prices in yen per gram Spot prices in per ounce
COMEX gold and silver contracts show the most active months
Editing by Himani Sarkar |
C | Gold futures Weekly review August 29 September 2 | Investing com Gold futures rallied on Friday re approaching the all time high after a report showing the U S economy added zero jobs in August boosted the safe haven appeal of the precious metal and fuelled expectations for additional stimulus from the Federal Reserve On the Comex division of the New York Mercantile Exchange gold futures for October delivery settled at USD1 883 25 a troy ounce by close of trade on Friday jumping 2 95 over the week the biggest weekly gain since August 8 The October contract rose as much as 3 5 to trade at USD1 884 85 a troy ounce on Friday the highest since August 23 when prices rose to a record high of USD1 917 90 a troy ounce On Friday the U S Department of Labor said non farm payrolls were unchanged last month the weakest reading since September 2010 Economists had expected non farm payrolls to rise by 74 000 in August July s figure was revised down to an increase of 85 000 from a previously reported 117 000 The unemployment rate remained unchanged at 9 1 in August The dismal jobs data fuelled expectations that the Federal Reserve will embark on a third round of monetary easing after Fed Chairman Ben Bernanke said last week the central bank remained prepared to implement fresh measures to stimulate the faltering U S economy Wall Street lender Citigroup said in a report Friday Stagnating economic and employment data may force the Fed to seriously consider taking additional action to stimulate the economy Gold prices found further support as concerns grew that the euro zone s sovereign debt crisis was worsening after negotiations between Greece s government and the International Monetary Fund were suspended after the debt laden country failed to meet deficit reduction targets The cost of insuring Greek sovereign debt against default surged to a euro lifetime high following the news adding to worries over a potential default Elsewhere on the Comex silver for December delivery traded at USD43 31 a troy ounce by close of trade on Friday climbing 3 75 on the week while copper for December delivery settled at USD4 101 a pound easing down 0 12 on the week COMEX floor trading will be closed on Monday for the U S Labor Day holiday |
C | Euro stocks plunge as financials fall sharply DAX falls 3 1 | Investing com European stock markets were down sharply on Monday as a combination of fears over the outlook for U S growth and concerns that the euro zone s debt crisis is worsening prompted investors to shun riskier assets During European morning trade the EURO STOXX 50 plunged 3 2 France s CAC 40 sank 3 4 while Germany s DAX 30 tumbled 3 1 Concerns that the global economic recovery is losing momentum were underlined on Friday after the Department of Labor said U S non farm payrolls were unchanged last month the weakest reading since September 2010 Economists had expected non farm payrolls to rise by 74 000 in August Adding to global worries German Chancellor Angela Merkel s ruling party was defeated in local elections on Sunday adding to concerns over the region s ongoing sovereign debt crisis Meanwhile shares in the financial sector came under broad selling pressure after the U S Federal Housing Finance Agency filed lawsuits against 17 global financial institutions over the sales of mortgage backed securities in the buildup to the 2008 financial crisis Among European lenders named in the lawsuit Deutsche Bank shares plunged 7 3 Societe Generale dropped 6 2 while U K lenders Royal Bank of Scotland and Barclays saw shares tumble 7 8 and 7 5 respectively Shares in peripheral lenders were also lower with Italian banking giant Unicredit falling 4 1 rival Intesa Sanpaolo down 4 5 while Banco Santander shares declined 4 Shares in Swiss chemical maker Clariant plunged 12 7 after it cut its full year sales and profit outlook citing a strong Swiss franc Elsewhere in London the commodity heavy FTSE 100 dropped 2 1 as miners performed poorly amid the uncertain global economic outlook Mining giants BHP Billiton and Rio Tinto saw shares drop 2 9 and 3 5 respectively while copper producer Xstrata saw shares tumble 4 2 Shares in Chilean copper miner Antofagasta retreated 3 65 after Citigroup downgraded the stock to hold from buy saying the stock s strong recent performance means we see better opportunities elsewhere in the sector Also Monday markets in the U S were to remain closed for the Labor Day holiday |
C | PRECIOUS Gold rebounds more than 1 pct ahead of Obama speech | Spot gold rallies 1 5 percent U S gold 1 6 percent after
3 pct drop
Physical purchase active as buyers exploit lower prices
Spot gold could fall to 1 793 19 technicals
Coming up U S President Obama addresses Congress 2300
GMT
Writes through adds comment details updates prices
By Rujun Shen
SINGAPORE Sept 8 Reuters Gold prices bounced back more
than 1 percent on Thursday boosted by bargain hunters after the
previous session s fall of 3 percent ahead of a speech by U S
President Barack Obama that could allay recession fears
Obama will lay out a jobs package worth more than 300
billion later on Thursday after data showed the world s top
economy added no new jobs in August
Gold prices dipped to below 1 800 in the previous session
triggering a wave of buying during Asian hours The price of
cash gold rose as much as 1 5 percent to 1 843 49 an
ounce and pared some gains to 1 840 66 by 0641 GMT
The most active U S gold futures contract rose 1 6
percent to 1 846 6 before easing to 1 843 50
The uncertainties around global economic growth have
propelled gold to consecutive record highs since July and are
expected to underpin sentiment for the metal until investors are
convinced the danger of recession is past
Obama s speech may offer hopes of improving the labour
market but the uptick in risk appetite is likely to be
temporary
All his package may do is lessen the fallout of recent
knocks to confidence from the euro zone sovereign debt crisis
and U S ratings downgrade said David Thurtell a Citigroup
analyst
Buyers rushed to the physical gold market after prices
dropped as much as 6 6 percent in the past two sessions from a
record high of 1 920 3 hit on Tuesday
RISK APPETITE IMPROVES
Investors abandoned precious metals for the riskier stock
market on Wednesday as Germany s top court rejected lawsuits
aimed at blocking German participation in emergency loan
packages but gave its parliament more say in
bailouts
The euro slipped and European stock index futures inched up
ahead of a European Central Bank meeting later that is expected
to call a halt to its rate tightening circle to support
economies battered by the debt crisis
Technical analysis suggested that spot gold could fall
towards 1 793 19 later in the day said Reuters market analyst
Wang Tao
The gold market is anticipated to maintain its downward
trend in the near term with a fall toward 1 750 possible over
the next few days Tom Pawlicki an analyst at MF Global said
in a research note
The direction of the market is less than certain as an
uncertain economic outlook in the United States and Europe
mixed data Obama s job packages and deteriorating technical
indicators vie for investors attention
In a sign indicating caution among gold investors holdings
of SPDR Gold Trust and iShares Silver Trust have
remained unchanged for a few days
Precious metals prices 0641 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1840 66 24 20 1 33 29 67
Spot Silver 41 75 0 23 0 55 35 29
Spot Platinum 1833 49 18 04 0 99 3 73
Spot Palladium 752 97 5 99 0 80 5 82
TOCOM Gold 4584 00 11 00 0 24 22 93 110262
TOCOM Platinum 4599 00 15 00 0 33 2 07 10662
TOCOM Silver 103 60 1 00 0 97 27 90 735
TOCOM Palladium 1899 00 19 00 1 01 9 44 329
COMEX GOLD DEC1 1843 50 25 90 1 42 29 70 37251
COMEX SILVER DEC1 41 85 0 21 0 51 35 25 3056
Euro Dollar 1 4073
Dollar Yen 77 35
TOCOM prices in yen per gram Spot prices in per ounce
COMEX gold and silver contracts show the most active months |
C | Nikkei pulls away from 6 mth low foreigners less bearish | Foreigners selling may bottom out
Short term rebound may be possible but mid term mood
shaky
Obama jobs speech awaited for clues on U S economy
Machinery stocks weaker after machine orders data
By Ayai Tomisawa
TOKYO Sept 8 Reuters The Nikkei stock average on
Thursday pulled further away from a six month low hit this week
helped by hopes of an improvement in Europe s debt situation but
the rise was tempered by continuing uncertainty about the U S
economic outlook
It was a second straight day of gains for the benchmark
average one which also yielded signs that foreigners are
turning less bearish towards the market
Nine foreign securities houses placed net buy orders albeit
by a slim margin before the start of trade on Thursday
following 29 trading sessions of net selling while data also
showed the amount of foreign net selling shrank sharply last
week from the previous week
It is likely that the selling trend may turn
around and a short term rebound is expected said Eiji
Kinouchi chief technical analyst at Daiwa Securities Capital
Markets
Investors are looking ahead to U S President Barack Obama s
speech to Congress on Thursday after the U S market close to
hear his administration s plans to boost the economy
U S Federal Reserve Chairman Ben Bernanke will also speak
on the U S economic outlook later Thursday after the Fed s
Beige Book summary of regional economies showed growth slowed in
some U S regions during May
Investors are still wary It won t be easy to convince
investors that there will be a turnaround with the current state
of the U S economy What about its massive deficit and what
about debt problems in Europe said Fujio Ando general manager
at Chibagin Asset Management
Even though the European Central Bank is buying sovereign
bonds of problematic countries in the euro zone this sort of
measure is only a temporary solution
The benchmark Nikkei climbed 0 3 percent in thin
trade to 8 793 12 its second day of gains On Tuesday it fell
as far as 8 588 its lowest level since March 15 when stocks
were sold off in the wake of the earthquake and tsunami
The broader Topix index added 0 5 percent to 757 41
That followed a 2 percent bounce for Wall Street on
Wednesday after Germany s top court smoothed the way for
Berlin s participation in bailouts that could ease Europe s debt
crisis
But shares of machinery makers such as industrial robot
maker Fanuc Corp weakened after Japan s core machinery
orders fell in July at twice the pace economists expected
Fanuc ended down 3 4 percent at 11 610 yen and construction
machinery maker Komatsu shed 1 9 percent to 1 881 yen
after the data raised concerns about the outlook for corporate
capital investment although the concerns were not enough to
push other sectors lower
Telecommunications firm Softbank was fell 1 7
percent to 2 722 yen after Citigroup lowered its rating to
hold from buy saying that growth in earnings is likely to
be limited for the next two years as the company increases
capital spending
But Sumco the world s No 2 supplier of silicon
wafers used to make chips surged 2 6 percent to 877 yen after
Credit Suisse raised its rating to neutral from
underperform saying its poor earnings estimate and falling
DRAM demand have been priced in
Inpex rose 4 5 percent to 492 500 yen and Japan
Petroleum Exploration gained 3 3 percent to 3 080 after
oil climbed by more than 3 to a five week high on Wednesday
Some 1 46 billion shares traded on the main board compared
to last week s average daily trading volume of 1 81 billion
shares
Weekly data showed foreigners were net sellers of Japanese
stocks to the tune of 87 7 billion yen in the week ending Sept
3 the sixth straight week of selling That was the longest such
streak since May June 2010 but last week s net sales were much
lower than the previous week s 338 billion yen
Additional reporting by Lisa Twaronite Editing by Edwina
Gibbs |
C | S P 500 Valuation | Our Blue Angels analysis of the S P 500 shows that its forward P E rebounded from a recent low of 12 1 on November 15 to 12 7 yesterday In the Santa rally scenario it should soon retest 13 which has been an unlucky number since early 2010 The market had three nasty corrections since then after failing to rise above this valuation level The fourth assault on 13 could be the charm If so then the valuation multiple could rise quickly to 14 a level not seen since early 2010 just before Greece hit the fan S P 500 forward earnings edged back up to 112 77 per share during the week of December 13 just a nickel below its recent record high A 14 multiple on that number would put the S P 500 up to 1579 slightly above the previous record high The S P 500 forward P E is highly correlated with the Citigroup Economic Surprise Index and with the CRB metals spot price index That s not surprising since investors are more likely to pay higher valuation multiples for earnings when they have more confidence in the economy Both the surprise and the metals indexes have firmed up in recent weeks Today s Morning Briefing Santa 1 Looking up 2 Nice round numbers 1465 then 1565 3 Barack John and Nick 4 The rich will get richer 5 Fiscal deal taking shape 6 Devil is in the details 7 Room for higher valuation multiple 8 Analysts too optimistic about earnings in 2013 and 2014 9 But there s room for improvement 10 Picking the leaders and laggards of 2013 |
C | NCDEX Pepper Medium Term Bullish To Test 36800 | NCDEX Pepper has been in an downtrend since the past three months forming lower tops and lower bottoms within the downward sloping channel C C1 The price has recently broken the previous low and channel resistances line C at Rs 35000 and closed above the same Hence the medium term trend continues to look bullish for Pepper and a test of previous top at Rs 36800 level looks possible The 9 period RSI is sustaining above the resistance line well above the 50 mark and is currently pointing higher which indicates bullish momentum Until price closes below trend line C at Rs 34500 level Buying on dips is advisable By Dharmesh Bhatia |
C | The Last Great Investment Of 2012 | On Mondays I normally serve up a widely held Wall Street belief on a silver platter Then I squash it like a bug with cold hard facts to prove it s nothing more than a myth This week we re sticking to the program and busting another myth Only this time I m asking you to do all the heavy lifting In the process you ll be making the last great investment available in 2012 I think that s fair compensation for asking you to exert some effort But let s see what you think Greedy Or Charitable It s long been said that Wall Street is overrun by greed and it has been since the beginning That s pretty hard to refute Especially when stories like the following have circulated for decades One day someone reportedly asked multi billionaire John D Rockefeller How much money is enough He responded One more dollar than I have And a new study suggests that not much has changed over the last 100 years or so The Chronicle of Philanthropy found that lower income Americans donate a much bigger share of their discretionary income than wealthier people do And the trend is shockingly evident at the epicenter of wealth creation the New York metro area The richest Americans in the region give just 4 of their discretionary income to charity The lowest wage earners in the region give 8 6 That s more than double I know it s hard to argue with numbers But I refuse to believe that Wall Street is that greedy and self serving Why Because I m a Wall Streeter and I know I m not that greedy No I didn t need to check my tax returns to be sure And I know I can t possibly be the only one In fact I believe the majority of Americans are more charitable than greedy And I m dead set on proving it today That s where you come in A New Breed Of Asset AllocationIf we ve done anything in the last year at Wall Street Daily to make you money make you laugh or improve your financial wisdom I d ask that you consider joining me today by donating to a very worthy cause Located in Nicaragua one of the poorest countries in Latin America the clinic provides free and low cost medical care to more than 10 000 patients in the isolated villages of Limon Rancho Santana and 41 other surrounding communities Think prenatal care basic prescriptions treatment for asthma attacks and allergic reactions and general checkups Things we take for granted because walk in clinics and hospitals abound in the United States Why donate to Nicaragua instead of a cause here at home Two reasons First even in our darkest economic times we re way more blessed than the average Nicaraguan Case in point If U S GPD contracted an apocalyptic 10 next year the average American would still be 15 times wealthier than the average Nicaraguan So our charitable donations no matter how small can have a much bigger impact And second my friend and Oxford Financial Group Publisher Julia Guth started the clinic Without her Wall Street Daily would never exist She s the one who gave this young punk from New Jersey a chance to break into the financial publishing business So helping her help others is the easiest way I can say thanks Bottom line I m asking you to help me bust the myth that Wall Street and America are overrun with greed It s time to prove that you ve got nothing but charitable feelings pulsing through your veins Simply take a few minutes to watch about the work being done at the clinic Afterwards I m hopeful you ll follow my lead and support the cause Even if it s just because you re looking for a last minute tax deduction as the clinic is a U S based 501 c 3 non profit organization After all beggars can t be choosers right Again all I m really asking is that you have an open mind and check out the video about the clinic If you cannot or choose not to donate no worries I m thankful for your consideration continued support and confidence in our work at Wall Street Daily |
JPM | Global Banks Face 1 2 Trillion Shortfall | By
The world s 30 biggest banks including HSBC JPMorgan Chase N JPM and Deutsche Bank DE DBKGn would need to raise as much as 1 2 trillion in total loss absorbing capacity by 2022 under proposed rules published Monday by Europe s Financial Stability Board FSB The plan which would need to be endorsed by leaders of the G20 before it comes into force aims to prevent a repeat of the 2008 financial crisis when taxpayers were forced to foot the bill for the bailout of several too big to fail banks It is important to recognize that success in ending Too Big To Fail may never be absolute because all financial institutions cannot be insulated fully from all external shocks But these proposals will help change the system so that individual banks as well as their investors and creditors bear the costs of their own actions and the consequences of the risks they take Mark Carney the governor of the Bank of England and chairman of the FSB wrote in a letter to G20 leaders Under the proposed rules which would apply to 30 global banks identified by the FSB as systemically important the lenders will have until January 2019 to create a financial buffer or Total Loss Absorption Capacity TLAC of at least 16 percent of their risk weighted assets The minimum TLAC requirement will gradually increase rising to 18 percent by January 2022 Currently according to the 18 percent target the banks face a shortfall ranging from 457 billion euros 491 billion to 1 1 trillion euros 1 2 trillion depending on the nature of debt included in the calculation If the proposed rules are enforced banks from emerging markets including large Chinese banks that have so far enjoyed an exemption from TLAC rules will be the hardest hit According to the FSB four of the 30 lenders classified as systemically important currently have no instruments that count toward TLAC The FSB proposal comes just days after the U S Federal Reserve proposed similar rules to ensure that the country s largest banks can withstand another financial crisis According to some estimates America s eight largest banks would currently need to raise an additional 120 billion to meet the Fed s target |
JPM | U S data show benign inflation steady growth pace | By Lucia Mutikani WASHINGTON Reuters U S import prices fell in October as the cost of petroleum and a range of goods declined indicating that a strong dollar and soft global demand continued to exert downward pressure on imported inflation Other data on Tuesday showed a surprise increase in wholesale inventories in September suggesting that the slowdown in economic growth in the third quarter was not as abrupt as initially believed The Labor Department said import prices dropped 0 5 percent last month after declining 0 6 percent in September Import prices have now fallen in 14 of the last 16 months Imported petroleum prices fell 2 1 percent after slipping 6 0 percent in September We believe that weakness in emerging Asia especially China is likely to push down import prices over and above any effect from the appreciation of the dollar said Rob Martin an economist at Barclays L BARC in New York In the 12 months through October prices tumbled 10 5 percent The robust dollar and a sharp decline in oil prices have weighed on inflation which is persistently running below the Federal Reserve s 2 percent target Weak inflation pressures however are unlikely to deter the U S central bank from raising interest rates next month after job growth surged in October and the unemployment rate fell to a 7 1 2 year low of 5 0 percent A tightening labor market could give Fed officials confidence that inflation will gradually move toward its target A Reuters survey of over 80 leading economists published on Tuesday showed a 70 percent median chance the Fed would raise its benchmark overnight interest rate at its Dec 15 16 policy meeting There is more pass through to come and we may be looking at a longer lag between the peak in dollar appreciation and the trough in import price declines than has been typical said John Ryding chief economist at RDQ Economics in New York The dollar has gained 16 6 percent against the currencies of the United States main trading partners since June 2014 Its impact on inflation was underscored by a 0 4 percent drop in import prices excluding petroleum last month the largest decrease since January On Tuesday the dollar rose to a fresh seven month high against a basket of currencies as traders anticipated the first interest rate hike from the Fed in nearly a decade Prices for U S Treasury debt were little changed and stocks were trading lower LESS INVENTORY DRAG In a separate report the Commerce Department said wholesale inventories increased 0 5 percent as rises in automobiles furniture farm products and apparel offset declines in machinery petroleum and a range of other goods Wholesale stocks rose 0 3 percent in August Inventories are a key component of gross domestic product changes The component of wholesale inventories that goes into the calculation of GDP wholesale stocks excluding autos increased 0 5 percent That is more than the government estimated in its advance GDP estimate which showed inventories sliced off 1 44 percentage points from growth in the third quarter leaving output expanding at a 1 5 percent annual rate As result economists expect third quarter GDP growth could be revised up to as high as a 1 9 percent rate later this month The third quarter inventory correction now looks less severe than we had previously believed said Daniel Silver an economist at JPMorgan N JPM in New York Sales at wholesalers rose 0 5 percent in September after declining 0 9 percent in August At September s sales pace it would take 1 31 months to clear shelves unchanged from August a still high level that suggests businesses have little incentive to aggressively restock warehouses
There is a risk that the inventory correction may be more prolonged than we had previously believed said Silver |
JPM | NY banking regulator unveils details on planned cyber security rules | By Suzanne Barlyn Reuters New York State s financial services regulator on Tuesday unveiled details about potential new cyber security regulations for banks and insurance companies under its jurisdiction The measures which follow a string of high profile hacking incidents would include everything from requiring that firms appoint a chief information security officer and adopt a multi stepped process for allowing employees and customers to log into their systems The details were outlined in a letter sent by the New York Financial Department of Services NYDFS to other state and federal regulators and are the most comprehensive information to date about the planned regulations NYDFS publicized the letter on the same day that U S prosecutors unveiled criminal charges accusing three men of helping run a sprawling series of hacking and fraud schemes including a huge 2014 attack against JPMorgan Chase Co N JPM that generated hundreds of millions of dollars of illegal profit It is our hope that this letter will help spark additional dialogue collaboration and ultimately regulatory convergence among our agencies on new strong cyber security standards for financial institutions wrote Anthony Albanese acting NYDFS superintendent in a letter to numerous regulators including the U S Office of the Comptroller of the Currency and Federal Reserve Board of Governors The NYDFS regulations if ultimately adopted would require firms to adopt written cyber security policies and procedures in 12 areas including customer data privacy and network security Firms would also have to develop policies to require that outside service providers also keep data secure The planned measures follow surveys that NYDFS conducted between 2013 and 2015 about cyber security programs of companies it regulates An April report for example revealed that one third of the 40 banks NYDFS had surveyed in 2014 did not require outside vendors to notify them of data breaches which could compromise bank data Firms if the measures are adopted would have to conduct annual testing and auditing of their cyber security systems Each firm s chief information security officer would also have to submit an annual report to NYDFS informing the regulator of possible vulnerability to risks NYDFS has been mulling potential regulations for more than a year Benjamin Lawsky the agency s former superintendent discussed the issue at a Reuters Financial Regulation Summit in May |
JPM | Warren Blasts Wall Street Again | By
Congress has been warned No more favors for big banks That s the message from Sens Elizabeth Warren D Mass and Elijah Cummings D Md who announced Tuesday that a financial reform repealed last year in the Cromnibus budget package allowed Wall Street to keep some 10 trillion in risky swaps in federally insured accounts
In letters to federal financial regulators Cummings and Warren said the repeal raises critical questions about whether federal policymakers are sufficiently attentive to the risk posed by the huge volume of financial products that were central to the 2008 financial meltdown and are still held by banks insured by the Federal Deposit Insurance Corporation FDIC
The tally comes from responses from four banking regulators queried by the senators on the total value of derivatives that were targeted by the 2010 Dodd Frank Act That law originally required banks to push out certain swaps from their core depositary operations to separate offshoots to mitigate risks
Swaps are financial products that can be used to hedge risks and bet against other securities They have been seen as central to the buildup of subprime loans in the leadup to the 2008 crisis as financial institutions created swaps that were used to bet against bundles of home loans and the companies that created them The increased appetite for the opaque and little known derivatives helped fuel the explosion in lending to risky home buyers When the bubble popped trillions of dollars worth of swaps and related products became toxic threatening the federally insured deposits of ordinary Americans
According to Warren and Cummings financial regulators reported that following the repeal of the swaps prohibition banks were allowed to keep more than 10 trillion of risky swaps on their books That total however is just a fraction of the 219 trillion in outstanding derivatives that the FDIC said are held by 15 relevant banks
Banks that responded to the lawmakers said that the push out provision would have added extra risks and imposed undue costs JPMorgan Chase Co N JPM said that pushing out the riskiest swaps would have created a bifurcation in derivatives management with two teams instead of one handling the financial products The increased costs the bank said could have led to customers choosing to deal instead with banks in Europe which excepting the U K doesn t enforce similar provisions
Warren and Cummings announcement comes as congressional leaders attempt to hammer out crucial year end legislation that has in years past become a favorite vehicle for industry friendly goodies Warren and others have raised hackles about recent efforts to declaw the Financial Stability Oversight Council which was created to safeguard against systemic risks following the financial crisis
The senators also had sharp words for the Securities and Exchange Commission and other financial watchdogs Regulators have not conducted an analysis of the financial and taxpayer risks posed by the repeal Warren and Cummings said in a press release |
BMY | The Extreme Risks Of Trading Your Own Retirement Assets November 28 2019 | You have a significant retirement portfolio You re an experienced investor You ve done pretty well at picking stocks You probably even own a few of Zacks Top Retirement stock picks like
EQT Midstream Partners LP EQM Bristol Myers Squibb BMY and Brinker International EAT
If you did something similar would it be advisable for you to trade your own retirement nest egg
It could be a good idea that is if you are one of the very few investors who understands your own risk tolerance and can keep your emotions in check during chaotic market swings However if you re like the rest of us there are likely more prudent ways to reach your retirement investing goals
Active stock trading requires an altogether different investing philosophy and risk reward understanding than building wealth for retirement
Managing Retirement Investments Stock Picking vs Diversification
While stock picking can potentially generate outsized returns its excessive concentrated risk can present huge perils for retirement investors
A study done by Hendrik Bessembinder of equity markets over nine decades found that just 4 of the best performing U S stocks generated all the market s gains The rest were flat the gains of the next 38 were wiped out by the bottom 58 which lost money
Those numbers reinforce that even if you are an experienced and talented stock picker your chances of success over a long period are very slim
Is Successful Investing a Mind Game
Investors think they can make rational decisions but research shows that the opposite is often true A recent DALBAR study tracked investors from 1986 to 2015 and found that the average investor substantially underperformed compared to the S P 500 Over 30 years the S P 500 returned 10 35 but the average investor return was just 3 66
It is interesting to note that the period covered by this study includes the 1987 crash the 2000 bear market and the Great Recession of 2008 as well as the bull market of the 1990s
This study indicates that one key explanation behind investor underperformance is attempting to time volatile markets and that irrational emotional biases are likely to compound investor botches
Interestingly even savvy traders tend to underperform because they can t help but allow emotions to drive investment decisions They may be overconfident and misjudge risk latch onto a price target or perceive a pattern that isn t there This behavior gap over the long term can be catastrophic with potential underperformance of hundreds of thousands of dollars sabotaging your retirement
The Bottom Line for Retirement Investors
Your retirement portfolio should be managed with a strategy of performance over decades not days weeks or quarters Most self directed investors tend to fall short when it comes to long term results
We re not saying you should not trade at all far from it If you enjoy trading perhaps you should put 10 of your investable assets to work in short term investments to seek alpha and outsized returns
But the point we re making here is that the money you have set aside for your retirement should be invested using a more conservative long term approach designed to produce reliable returns so you can steadily build assets and achieve your retirement goals
Do You Know the Top 9 Retirement Investing Mistakes
Whether you re planning to retire early or not don t let investing mistakes derail your plans
If you have 500 000 or more to invest and want to learn more click the link to download our free report 9 Retirement Mistakes that will Ruin Your Retirement This report will help you steer clear of the most common mistakes like trying to time the market lack of diversification in your portfolio and many more Get Your FREE Guide Now |
BMY | Top Ranked Income Stocks To Buy For December 3rd | Here are four stocks with buy rank and strong income characteristics for investors to consider today December 3rd AGNC Investment Corp AGNC This real estate investment trust has witnessed the Zacks Consensus Estimate for its current year earnings increasing 7 1 over the last 60 days AGNC Investment Corp Price and Consensus This Zacks Rank 2 Buy company has a dividend yield of 11 06 compared with the industry average of 8 44 Its five year average dividend yield is 11 82
AGNC Investment Corp Dividend Yield TTM Manulife Financial Corporation MFC This provider of financial and asset management services has witnessed the Zacks Consensus Estimate for its current year earnings increasing 0 9 over the last 60 days
Manulife Financial Corp Price and Consensus This Zacks Rank 2 Buy company has a dividend yield of 3 87 compared with the industry average of 0 55 Its five year average dividend yield is 3 58
Manulife Financial Corp Dividend Yield TTM Bristol Myers Squibb Company NYSE BMY BMY This biopharmaceutical company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 2 1 over the last 60 days
Bristol Myers Squibb Company Price and Consensus This Zacks Rank 2 Buy company has a dividend yield of 2 86 compared with the industry average of 2 64 Its five year average dividend yield is 2 7
Bristol Myers Squibb Company Dividend Yield TTM Apollo Investment Corporation AINV This business development company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5 5 over the last 60 days
Apollo Investment Corporation Price and Consensus This Zacks Rank 2 Buy company has a dividend yield of 10 70 compared with the industry average of 8 54 Its five year average dividend yield is 11 45
Apollo Investment Corporation Dividend Yield TTM See the
Find more top income stocks with 7 Best Stocks for the Next 30 DaysJust released Experts distill 7 elite stocks from the current list of 220 Zacks Rank 1 Strong Buys They deem these tickers Most Likely for Early Price Pops Since 1988 the full list has beaten the market more than 2X over with an average gain of 24 6 per year So be sure to give these hand picked 7 your immediate attention |
C | Bargain hunters oil stocks fuel FTSE rebound | FTSE 100 up 2 5 percent
Energy stocks firm on Libya hopes
ICAP IG Group helped by market volatility
By Tricia Wright
LONDON Aug 22 Reuters Strong energy stocks boosted by
hopes for an imminent end to the conflict in Libya fuelled
gains in Britain s top shares on Monday as investors bought
back into equities following recent hefty declines
Integrated oil stocks added the most points to
the blue chip index with sentiment surrounding the sector
lifted as Muammar Gaddafi s rule appeared to be crumbling
Royal Dutch Shell climbed 3 1 percent while BP
and BG Group notched up respective gains of 2 2
percent and 1 9 percent
Oil services firms which traders said could benefit from
maintenance work in the country found support Petrofac
firmed 3 9 percent after it posted a forecast beating first half
profit and said it was confident demand from national oil firms
would continue to drive future growth
Midcap peer Lamprell advanced 5 6 percent
Essar Energy the India focused refiner and power
generator dropped 4 1 percent after reporting its results
While its earnings rose 49 percent in the first half of the
year on the back of higher refinery margins the company said it
continued to battle delays to regulatory approvals
The FTSE 100 was up 123 55 points or 2 5 percent
at 5 164 31 by 1144 GMT after a torrid week in which it sank
5 2 percent on concerns the global economy could be heading back
into recession
Traders said that bargain hunting was helping to drive the
index s gains
We did go below 5 000 near the open and I think a lot of
people have taken the view that it s probably fairly cheap given
the range of recent days the lowest it s been is around 4 800
and there was a very sharp rebound off that Michael Hewson
analyst at CMC Markets said
Traders said the extreme market turbulence seen lately has
benefited inter dealer broker ICAP up 5 7 percent and
at the top of the blue chip leader board
Indeed midcap spread betting firm IG Group rose 5
percent after it said recent volatility and heavy trading
volumes gave its sales a boost
Interdealer broker Tullet Prebon firmed 2 9
percent
MINERS HIGHER
Miners were also behind the FTSE 100 s gains
Randgold Resources climbed 4 2 percent as spot gold
rallied with the bullion spurred by a flight to safety
A target price hike from Citigroup also helped with the
broker lifting its gold price forecasts to accommodate the
impact global financial tension is having on gold
Randgold traded at a valuation parity with Fresnillo 12
months ago but the Ivory Coast problems saw it move to a 35
percent discount The Ivory Coast issues have been resolved but
it still trades at a 25 percent discount Citi said in a note
On the second line Petropavlovsk which Citi
upgraded to buy climbed 6 8 percent while African Barrick
Gold and Centamin Egypt rose 2 6 percent and
5 6 percent after the broker hiked their target prices
Anglo American added 1 7 percent as newspaper
reports said it was considering a bid for Macarthur Coal
to rival an earlier offer from U S coal company
Peabody Energy
With global growth at the forefront of investors minds the
meeting of central bankers in Jackson Hole Wyoming on Friday
will be keenly awaited
It was at the same meeting last year that Federal Reserve
Chairman Ben Bernanke first hinted at a second round of
quantitative easing QE to help spur the U S economy though
it is considered unlikely that he will announce further
quantitative easing this time
Don t rule out some form of positive message from Jackson
Hole even if it isn t additional QE Peter Dixon economist at
Commerzbank said
For related prices Reuters Terminal users may click on
UK stock report
FTSE index 0 FTS6
techMARK 100 index FTSE futures 0 FFI
Gilt futures 0 FLG Smallcap index
FTSE 250 index FTSE 350 index
Market digest Top 10 by vol
Top price gainers Top gainers
Top price losers Top losers
For related news click on
UK hot stocks HOT GB Wall Street
Gilts report Euro bond report
Pan European stock report
Tokyo stocks HK stocks
Sterling report Dollar report
For company prices click on
Company directory By sector
For pan European market data and news click on
Daily European stocks report
European Equities speed guide
FTSE Eurotop 300 index
DJ STOXX index
Top 10 STOXX sectors
Top 10 EUROSTOXX sectors
Top 10 Eurotop 300 sectors
Top 25 European pct gainers
Top 25 European pct losers
Reporting by Tricia Wright Editing by Jon Loades Carter |
C | FOREX Fed speculation hurts dollar vs high yielders euro | Dollar struggles vs high yielders as Fed meeting nears
SNB intervenes in Swiss franc forward market
Merkel repeats opposition to euro zone bond idea
Recasts top adds comment detail updates prices changes
byline dateline previous LONDON
By Steven C Johnson
NEW YORK Aug 22 Reuters The dollar slipped against
commodity linked currencies on Monday as some investors
speculated the Federal Reserve would take new measures to boost
the ailing U S economy while Swiss authorities moved to drive
down the franc
The Fed will host its annual retreat in Wyoming this week
and recent market turmoil and signs of weaker U S growth have
fed expectations that Fed Chairman Ben Bernanke may hint at
more emergency stimulus for the economy
At last year s meeting Bernanke hinted at what eventually
became a 600 billion quantitative easing bond buying
program known as QE2
The Fed is definitely on people s minds and you could
argue that some of the bounce seen in high yield commodity
currencies is at least in part related to hopes for more policy
measures said Wells Fargo strategist Vassili Serebriakov in
New York
Others anticipate Bernanke will highlight the need to
continue supporting the economy but may stop short of
announcing more asset buying For more see ID nN1E77I0NF
Bernanke could be the game changer for the market this
week said Ulrich Leuchtmann strategist at Commerzbank
Fed easing increases the amount of dollars in the system
pushing down the currency s value and U S interest rates That
encourages investors to seek higher returns in stocks or
currencies that carry higher interest rates
Among the best performers Monday were the Australian dollar
up 0 6 percent at 1 0454 and the New Zealand dollar
up 1 2 percent at 0 8266
The euro traded 0 2 percent higher at 1 4424
supported by a 1 3 percent rise in European shares
The latest positioning data shows speculators increased
their bets against the dollar last week IMM FX
QE3 would probably lead to further dismay among foreign
investors and selling of dollars Citigroup strategists said
in a note to clients
SNB INVOLVED YEN EYED
The euro and dollar also rose against the Swiss franc
Traders said the Swiss National Bank
intervened in the one month forward market to drive down the
forward rate and deter investors from buying the currency
ID nL5E7JM0SD The SNB declined
comment
The euro traded 0 6 percent higher on the day
against the Swiss franc at 1 1370 francs Its one month forward
interest rate adjustment was around 27 00
falling towards roughly 30 40 hit last week
The franc has soared to record highs against both
currencies as fear about Europe s debt crisis and the U S
economy pushed investors toward the traditional safe haven
To slow franc appreciation the SNB has mentioned the
possibility of pegging it to the euro Investors remain on edge
that the central bank could sell francs on the spot market
though attempts to weaken the franc this way in 2010 failed
Traders also speculated that Japan could intervene to
weaken the yen Though up slightly from Friday the dollar was
not far from its all time low trading at 76 75 yen
But Credit Suisse currency strategists said that while the
risk of intervention seems to be rising we think the main
impact would be to slow rather than stop yen appreciation
The euro s gains were limited though by continued worries
about the euro zone debt crisis and the perception that
officials were moving too slowly to address problems
German Chancellor Angela Merkel on Sunday rebuffed calls
for joint euro denominated bonds as a way for fiscally weak
euro zone countries to borrow ID nL5E7JJ3MN
If things start to take a turn for the worse in the euro
zone it s hard to see what they can come up with to help
said Richard Falkenhall currency strategist at SEB in
Stockholm
Additional reporting by Naomi Tajitsu in London Editing by
James Dalgleish |
C | European shares bounce led by ENI on Libya hopes | FTSEurofirst closes 0 8 pct higher after slump last week
ENI leads rise for oil shares
Gold stocks wanted as global growth worries remain
By Brian Gorman
LONDON Aug 22 Reuters European shares bounced on Monday
after a steep sell off last week with Italy s ENI
among the main gainers on hopes that a new political regime in
Libya will help it restore oil production activities to former
levels
ENI the biggest foreign oil producer in Libya rose 6 3
percent France s Total also among heavyweight energy
companies active in Libya rose 2 3 percent
The sector gained 1 3 percent despite Brent crude
falling by more than 1 to around 107 a barrel with traders
and investors anticipating the resumption of oil exports from
OPEC member Libya as a six month civil war there appeared close
to an end
The FTSEurofirst 300 index of top European shares
rose 0 8 percent to close at 916 78 points having risen as high
as 933 35 after falling 6 percent last week
Trading volume was light at 86 percent of the index s
average for the last 90 days This caused some strategists to
question whether the rally would continue but others said the
market may have hit its low
If you believe super easy monetary policy and lower oil
prices can help growth stay positive albeit rather anaemically
then this market forms a base Bob Parker senior adviser at
Credit Suisse said It s not going to be driven by corporate
earnings It s going to be macro driven
The pan European index is still down 18 3 percent in 2011
Investors have cut their exposure to risky assets such as
stocks following an escalation of the euro zone debt crisis the
United States losing its triple A credit rating and weak
economic data from major economies which sparked concerns
they may lapse back into recession
The Federal Reserve holds its annual global banking
conference in Jackson Hole Wyoming at the end of the week
with markets watching a speech on Friday by Fed Chairman Ben
Bernanke for clues to whether he plans further quantitative
easing QE or other stimulus measures for the flagging U S
economy
Parker said there was a risk of disappointment and the
market may be expecting too much in looking for Bernanke to
announce more QE
ONE YEAR FORWARD
The healthcare sector rose 2 percent The defensive
attractions of the sector have helped it outperform the wider
market in 2011 and it has lost just 2 6 percent
As a consequence its price earnings ratio is now above the
average Equity valuations on Thomson Reuters Datastream showed
the STOXX Europe 600 carrying a one year forward
price to earnings of 8 7 the lowest since early 2009 while the
healthcare sector trades at 10 times
Roche rose 3 percent after an experimental drug
designed to raise good HDL cholesterol produced encouraging
results in a small mid stage clinical trial
Across Europe Britain s FTSE 100 and France s CAC40
both rose 1 1 percent while Germany s DAX fell
0 1 percent
Investors continue to worry about the impact of a weaker
economic backdrop on German exporters such as carmaker BMW
down 4 2 percent
Gold rose almost 2 percent to a record near 1 900 an ounce
as a sputtering global economy boosted expectations for further
monetary easing raising bullion s appeal as a hedge against
inflation
Citigroup raised its gold price forecasts upped its
recommendation on London listed Russian miner Petropavlovsk
to buy and named Randgold as its preferred
play in the sector The two companies gained 6 2 and 3 9 percent
respectively
Some technical analysts remained cautious about the wider
market
The important aspect to note is if we break below the key
lows of early August 888 11 then the trading landscape can get
potentially nasty That would negate the short term bullish
outlook for this week and see the bearish trend resume said
Sandy Jadeja chief technical analyst at City Index
The 14 day Relative Strength Index for the pan European
benchmark rose to nearly 30 on Monday In technical terms it
remained oversold defined by values below 30
Additional reporting by David Brett Editing by David Holmes
For rolling updates on what is moving European shares
please click on
For pan Europeanmarket data and news click on codes in
brackets
European Equities speed guide
FTSEurofirst 300 index
STOXX Europe index
Top 10 STOXX sectors
Top 10 EUROSTOXX sectors
Top 10 Eurofirst 300 sectors
Top 25 European pct gainers
Top 25 European pct losers
Main stock markets
Dow Jones Wall Street report
Nikkei 225 Tokyo report
FTSE 100 London report
Xetra DAX CAC 40
World Indices 0 INDEX
Reuters survey of world bourse outlook
Western European IPO diary
European Asset Allocation
Reuters News at a Glance Equities
Main currency report |
C | FOREX Dollar falls on speculation of Fed easing data | Euro supported by German Chinese manufacturing PMI
Expectations for more Fed easing boost risk appetite
Market watches Switzerland Japan for intervention
Updates prices adds comment details changes byline
By Wanfeng Zhou
NEW YORK Aug 23 Reuters The U S dollar fell on
Tuesday on better than expected German and Chinese factory data
which eased worries about global growth and on expectations the
Federal Reserve may ease policy further to stimulate a flagging
U S economy
Fed Chairman Ben Bernanke will speak at the central bank s
annual retreat in Wyoming on Friday At last year s speech he
prepared markets for a 600 billion bond buying program
Such measures increase the amount of dollars in the system
driving down the currency s value which helps U S exports
and prompting investors to seek higher returns elsewhere U S
stocks under pressure since late July rallied on Tuesday
There is growing expectation or rather hope that
Bernanke s speech may contain some reference to a potential
third round of quantitative easing said Samarjit Shankar
managing director of global FX strategy at BNY Mellon in
Boston
However we would continue to caution that risk appetite
remains very tentative for now as global growth stalls and
further monetary stimulus via potential QE3 in the U S may not
materialize given underlying price pressures
The euro last traded up 0 4 percent at 1 4414
after climbing as high as 1 45 on trading platform EBS the
top of a tight 1 40 1 45 range that has held firm since early
July
Europe s debt and banking crisis has had some investors
wondering whether the European Central Bank would soon have to
adopt some monetary easing of its own but a solid German
manufacturing index eased some of those fears For details see
ID nL5E7JM0VJ
The German data taken with a report showing China s
factory sector held up better than expected in August helped
investors overlook a separate report showing a sharp fall in
German economic sentiment ID nL4E7JM2D ID nL5E7JN0Q0
Commodity linked growth sensitive currencies such as the
Australian and New Zealand dollars gained ground
The Australian dollar rose 0 8 percent to 1 0480
Strong Australian Chinese trade links make the Aussie sensitive
to Chinese economic data The New Zealand dollar jumped 1 1
percent to 0 8329
INTERVENTION STILL ON RADAR
Investors remained wary that the Swiss National Bank could
reenter markets to curb recent franc strength The euro had
climbed as high as 1 1430 francs earlier and was last up 0 5
percent at 1 1404 francs
The SNB has cut interest rates to zero flooded the banking
system with francs and intervened in the forward market to make
returns on francs less attractive to potential investors
Some of that appeared to be working In the options market
implied volatility in euro Swiss dipped below 18
percent from 20 percent on Monday as tighter ranges in spot
suggested the recent SNB measures were taking effect
The dollar dipped 0 2 percent to 76 66 yen although
market players remained wary of yen selling intervention by
Japanese authorities
Bank of Japan data suggested Japan sold roughly 4 5
trillion yen in currency intervention on Aug 4 its biggest
one day yen selling intervention ever ID nT9E7J2068
But the yen ended up rising back to levels seen before
intervention a few days later thanks largely to hedge fund
buying said Citigroup analyst Todd Elmer in New York
A mild earthquake that shook parts of the U S East Coast
had little impact on the currency market
Additional reporting by Steven C Johnson Editing by James
Dalgleish |
C | FOREX Dollar climbs as investors trim Fed expectations | Dollar edges up on chances Fed plays it safe Friday
U S durable goods show surprisingly strong rise
Investors still on alert for yen intervention
Updates prices adds comment details changes byline
By Wanfeng Zhou
NEW YORK Aug 24 Reuters The dollar rose against major
currencies on Wednesday erasing early losses as investors
trimmed bets against the U S currency on fear the Federal
Reserve may not signal new stimulus for the economy this week
The yen weakened to around 77 per dollar not far from a
recent record low after Japan unveiled new steps to curb its
currency s strength and after Moody s downgraded the country s
sovereign debt
Moves in the currency market were limited and traders said
there was little conviction behind them as reflected by
several back and forth moves inside fairly tight ranges
While investors are worried that the U S economy may slip
into recession they are not entirely convinced that Fed
Chairman Ben Bernanke is ready to announce another bond buying
program on Friday The Fed already pledged earlier this month
to hold interest rates near zero until at least 2013
Markets are looking forward to Bernanke and Jackson Hole
and are increasingly reluctant to carry risk into the speech in
coming days said Brad Bechtel managing director and head of
sales at Faros Trading in Stamford Connecticut
Bernanke used last year s annual Jackson Hole speech to
hint at another round of quantitative easing which eventually
pumped 600 billion into the financial system
More money in the system depresses the value of the dollar
and encourages investors to seek higher returns elsewhere
The euro was last down 0 1 percent at 1 4420
while the dollar reversed early losses to trade up 0 4 percent
at 76 98 yen
Greg Salvaggio vice president of trading at Tempus
Consulting in Washington said markets are bit confused about
whether there will be a QE3 or not and investors are taking
profits He said a 130 per ounce decline in gold over
the last two days reflects that
A surge in U S July orders for long lasting durable goods
also eased some fear about the U S economy ID nN1E77N096
YEN INTERVENTION STILL A RISK
Despite its gains the dollar remained near a record low of
75 941 yen set on the EBS platform last week and some analysts
said that could spark another round of intervention by Japan to
weaken the currency
Japan unveiled a 100 billion credit line on Wednesday for
companies investing overseas and stepped up monitoring currency
positions of financial institutions in an attempt to curb the
yen s strength
But Citigroup currency strategist Todd Elmer said the new
scheme treats the symptoms not the underlying cause of yen
strength so it s not going to have any impact whatsoever in
supporting dollar yen
But while the yen is a favorite shelter for investors who
want to exit trades in higher yielding but riskier assets yen
appreciation hurts Japan s economy by undercutting its exports
Societe General strategist Sebastien Galy said Japan is
laying the ground for far more aggressive policy
He said the dollar may grind lower in the near term and
could break through its record low But when it does the next
shoe will drop he said
Bank of Japan data suggested Japan sold roughly 4 5
trillion yen in a currency intervention on Aug 4 its
biggest ever one day action but it has had limited effect
Moody s Investors Service cut its rating on Japan s
government debt by one notch to Aa3 blaming a build up of debt
since the 2009 global recession and revolving door political
leadership that has hampered effective economic strategies
Additional reporting by Steven C Johnson Editing by Padraic
Cassidy |
C | PRECIOUS Gold loses more shine after CME margin hike | CME Group raises COMEX gold margins by 27 pct
Gold uptrend intact eyes 1 784 oz technicals
Coming Up U S weekly initial jobless claims 1230 GMT
Adds comment updates prices
By Rujun Shen
SINGAPORE Aug 25 Reuters Gold fell more than 1 percent
on Thursday extending the previous session s losses after the
CME Group raised trading margins by the most in over two
and a half years to curb volatility in bullion that had surged
to dizzying heights
Spot gold dropped by more than 4 percent on Wednesday its
biggest drop since December 2008 as investors liquidated
positions after the precious metal surged nearly 35 percent this
year to a record high above 1 911 on Tuesday
CME increased margin requirements on its gold futures
contract by 27 percent the second hike in a month following
similar moves by the Shanghai Gold Exchange and Hong Kong
Mercantile Exchange earlier this month
Data suggesting the U S economy was facing a slowdown
instead of a recession also took the shine off safer assets like
gold
A lot of hot money has entered the complex and the rally
was done too much in too short a time said David Thurtell an
analyst at Citigroup
Last 24 hours there was definitely profit taking With the
margin hike if speculators don t have the money to pull out as
extra margin they ll just cut their positions That contributed
to the liquidation
Spot gold slipped as much as 1 3 percent to 1 728 59
an ounce before recovering some ground to trade at 1 739 80 by
0617 GMT On Wednesday bullion dropped 4 3 percent its biggest
daily drop since Dec 1 2008
U S gold fell 0 8 percent to 1 742 90 after
dropping 5 6 percent on Wednesday the steepest daily drop since
March 2008
Helping fuel Wednesday s sell off was data showing new
orders for long lasting U S manufactured goods rose more than
expected in July offering hopes that the ailing economy could
dodge another recession and boosting risk appetite across
markets
Before this week s drop bullion had surged more than 400
since July and scored consecutive record highs as a struggling
U S economy and crippling debt crisis in Europe boosted gold s
safe haven appeal
Spot gold has lost more than 8 percent from its all time
high The price surged nearly 10 percent in the six day climb
before the decline
NOT SAFE ANYMORE
People always refer to gold as safe haven When we
introduce volatility to the equation it doesn t seem so safe
anymore said a Singapore based trader but added that gold s
luster looks intact
Many leveraged longs are going to leave it alone for a
while And when prices come down like this it might be a buying
opportunity for real money account like central banks
Technical charts suggest that a medium term uptrend for gold
is intact even after the sharp drop over the past two sessions
with a rebound likely to push it to 1 784 said Reuters market
analyst Wang Tao
Holdings in the SPDR Gold Trust dropped 2 2 percent on
the day to 1 232 314 tonnes by Aug 24 its lowest in more than
a month and down 6 percent from a one year high of 1 309 922
tonnes hit on Aug 8
ANZ has raised its forecast for gold prices expecting
prices to peak at 2 200 in the second quarter of 2012 from a
previous forecast of 1 800
The substantial revision has been propped up by an unusual
lack of support for the U S dollar under the current uncertain
financial market conditions effectively channelling stronger
than normal safe haven flows to gold said ANZ analysts in a
research note
Precious metals prices 0617 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1739 80 10 75 0 61 22 57
Spot Silver 39 64 0 01 0 03 28 45
Spot Platinum 1810 74 8 54 0 47 2 45
Spot Palladium 744 83 1 03 0 14 6 84
TOCOM Gold 4323 00 222 00 4 88 15 93 151336
TOCOM Platinum 4537 00 102 00 2 20 3 39 13051
TOCOM Silver 98 10 4 60 4 48 21 11 1208
TOCOM Palladium 1860 00 22 00 1 17 11 30 189
COMEX GOLD DEC1 1742 90 14 40 0 82 22 62 54086
COMEX SILVER SEP1 39 73 0 57 1 45 28 41 10925
Euro Dollar 1 4412
Dollar Yen 77 14
TOCOM prices in yen per gram Spot prices in per ounce
COMEX gold and silver contracts show the most active months
Additional reporting by Manolo Serapio Jr Editing by Himani
Sarkar |
C | Robust results lift Diageo IMI as FTSE edges up | FTSE 100 up 0 1 pct
Diageo IMI jump after results
Barclays up 7 8 pct leading banks higher
By Tricia Wright
LONDON Aug 25 Reuters Diageo and IMI were among the
biggest UK blue chip risers on Thursday as investors welcomed
robust results from the pair as Britain s top share index edged
higher ahead of a key speech by Federal Reserve Chairman Ben
Bernanke on Friday
Diageo jumped 7 4 percent after the world s biggest
spirits group unveiled full year results ahead of forecasts
with Collins Stewart upgrading its rating on the stock to
hold deeming the announcement of some medium term guidance as
a clear positive
The market has been crying out for a more aggressive view
on the medium term prospects against a general sense that whilst
Diageo has not necessarily done poorly over the years it has
not made the most of its unrivalled portfolio analysts at
Collins Stewart said in a note
IMI was another strong gainer 7 5 percent higher
after the engineer posted higher than expected first half
profits and said a slowdown in industrial demand in southern
Europe and the UK had not hit order trends since the end of
June leading Panmure Gordon to repeat its buy stance on the
stock
Miners added the most points to the index for a
second session as copper prices ticked higher after a strong
reading on U S durable goods orders on Wednesday brightened the
demand outlook
Kazakh miner Kazakhmys was the best off up 7 2
percent after it posted a 20 percent rise in first half
underlying profit boosted by stronger copper prices and
announced a surprise share buyback worth up to 250 million
Commodities trader Glencore meanwhile added 1 9
percent as it met forecasts with a 50 percent rise in first half
profit
The UK benchmark index had risen 2 96 points or 0 1
percent to 5 208 81 by 1119 GMT having climbed 1 5 percent on
Wednesday hitting its highest close in a week
The market focus remained firmly on a speech by Federal
Reserve Chairman Ben Bernanke on Friday at a meeting of central
bankers in Jackson Hole Wyoming which some investors hope will
signal measures to support the struggling U S economy
UBS Citigroup and Credit Suisse have cut their economic
growth forecasts as various data and the outlook for corporate
earnings has weakened
FORECASTS COMING DOWN
Money managers however said this would not be cause for
alarm as it was really just investment banks catching up with
disappointing economic news over the summer
Markets are quiet ahead of Bernanke speaking at Jackson
Hole tomorrow said Lex van Dam hedge fund manager at
Hampstead Capital which has about 500 million of assets under
management
The macro environment remains challenging with economic and
company forecasts coming down Having said that a lot of this
is known by now and there is a slow return to more risky
assets he said
U S stock index futures pointed to a
mixed opening on Wall Street ahead of the latest weekly U S
jobless claims at 1230 GMT with a figure of 405 000 expected
after a reading of 408 000 last week
Banks were in demand extending gains from the
previous session with traders citing cheap valuations and
strength overnight from their U S peers
Barclays led the sector higher up 7 8 percent
while Royal Bank of Scotland firmed 4 7 percent and
Lloyds Banking Group climbed 4 6 percent
Andrew Bell chief executive of the 1 1 billion pound Witan
Investment Trust said that of the two main market concerns in
August namely over economic growth and the European sovereign
debt situation he would be more worried about the latter
particularly since by and large growth forecasts have been
lowered to what are still positive numbers
There s an issue for Europe which is can they square
Germany s price for bailing out the periphery Bell said
They want to have everyone sign up to long term fiscal
prudence but is it possible to get everyone to sign up to
that and start to implement budget tightening measures without
clobbering growth so hard in the short term that actually the
attainment of budget balance moves further and further away
On the downside Shire sank 4 1 percent after its
bio engineered skin substitute Dermagraft failed in a late stage
clinical trial for treating venous leg ulcers
UBS lowered its target price in response to 2 380 pence
from 2 400p while keeping its buy rating
Editing by David Holmes
For related prices Reuters Terminal users may click on
UK stock report
FTSE index 0 FTS6
techMARK 100 index FTSE futures 0 FFI
Gilt futures 0 FLG Smallcap index
FTSE 250 index FTSE 350 index
Market digest Top 10 by vol
Top price gainers Top gainers
Top price losers Top losers
For related news click on
UK hot stocks HOT GB Wall Street
Gilts report Euro bond report
Pan European stock report
Tokyo stocks HK stocks
Sterling report Dollar report
For company prices click on
Company directory By sector
For pan European market data and news click on
Daily European stocks report
European Equities speed guide
FTSE Eurotop 300 index
DJ STOXX index
Top 10 STOXX sectors
Top 10 EUROSTOXX sectors
Top 10 Eurotop 300 sectors
Top 25 European pct gainers
Top 25 European pct losers
Reporting by Tricia Wright |
C | Citi Up 6 0 Today Will You Buy | Citi new CEO Michael Corbat took his first step in making Citi more leaner by cutting 11 000 jobs which is about 4 of its workforce He is always famous for being liking the company leaner and efficient His action is expected to save about 900 million in cost savings next year and annual expense savings of more than 1 1 billion beginning in 2014 Citi has always been known to have more bright spot as compare to its competitors when it comes to consumer banking which will be hit hardest with about 35 of the charges and the majority of layoff in branch banking and consumer lending now CEO said out of 11 000 jobs 6 200 jobs will be cut in the global consumer banking unit About 40 percent of those layoffs will be in technology and operations support areas Citigroup has been reducing its size down globally by selling assets In May Citi sold a stake in Turkey s Akbank for 1 15 billion It sold a 1 9 billion stake in India s HDFC in February This time CEO is saying to scale back or even exit consumer banking in Pakistan Paraguay Romania Turkey and Uruguay Michael Corbat was so aggressive in his move today that even top markets for Citi were not even spared such as Brazil and Hong Kong where it will cut its number of branches After the restructuring the bank will have 4 000 branches around the world Portfolio Holdings According to Reuters there 2353 portfolio holding this stock and recent activity shows 32 new buys and 2 sells Institutional Holdings Citi s shares are owned by 65 95 by intuitions and 3 month net change is 75million addition so in other words 115 new positions were opened and 80 positions were closed by hedge funds according to Reuters Analyst Recommendations There are 9 buys which is up by 2 three months ago 13 Outperfrom which is up by 1 three months ago 7 Hold which is up by 2 three months ago and 2 sell according to reuters poll Performance Week 2 14 Month 8 80 Quarter 15 45 Year 27 19 Technical Analysis 52 Week s Range 24 37 38 71 SMA s Percentage SMA20 2 62 SMA50 2 71 SMA200 14 87 Average Volume 39 83M ATR 0 85 Important Levels Demand Zone Demand zone 1 34 39 33 99 Aggressive Investor Demand Zone 2 31 85 31 23 Conservative Investor Resistance Zones Resistance zone 1 36 72 36 32 Aggressive Investor Resistance Zone 2 37 90 38 74 Conservative Investor DISCLOSURE DISCLAIMER The Above Is For Informational Purposes Only And Not To Be Construed As Specific Trading Advice Responsibility For Trade Decisions Is Solely With The Reader by Naeem Aslam |
C | EURUSD Larger Trend Is Up | Decline from 1 3170 down to 1 2660 is a three wave move A three wave patterns are corrective waves part of a larger trend which is clearly bullish from 1 2030 Therefore we believe that EUR USD will continue higher ideally into wave C five wave rally after 1 3170 break which we think it will happen in the next few weeks while 1 2660 holds If we are correct then reversal seen last week from above 1 31 is only wave 2 pull back If from any reason 1 2660 would be breached then wave B would become even more complex than firstly thought but still as a part of an uptrend |
C | Gold Has Declined Within The Expected Wave C | INTRADAY STRUCTURE RATIO TABLE11th December Price has declined as suggested in last week s report The Wave a of Wave iii ended at 1 683 62 and has seen quite a deep Wave b at 70 and perhaps we should allow for a deeper Wave b but I feel the larger risk is now back lower in Wave c It s difficult to judge theinternal levelsthis decline but the 176 4 198 4 projection in Wave iii looks about right at 1 635 45 This should imply an eventual test of the daily pivot support around 1 625 30 Only back above the 85 4 retracement in Wave b would concern now this being at 1 724 56 would cause me to look for an alternative bullish outlook |
C | NCDEX Castor Seed Break Of Trendline Resistance 3600 A Positive Signal | As shown on the daily chart NCDEX Castor seed was trading negatively since past three months forming lower tops and higher bottoms within trend channel C C1 Recently price has breached trend line resistance C at Rs 3600 and is consolidating well above it since then Price is currently heading towards the previous top of Rs 3767 and any sustainable close above the same could further rally the price to Rs 3873 The 9 period RSI has started making higher top and is pointing upwards indicating positive momentum |
JPM | JPMorgan settles California debt collection charges | By Jonathan Stempel Reuters JPMorgan Chase Co N JPM will pay 50 million to settle charges that it engaged in abusive credit card debt collection practices against tens of thousands of people in California state Attorney General Kamala Harris said on Monday California was one of three U S states along with Mississippi and Wyoming that did not join JPMorgan s 216 million settlement in July of related charges by the federal government the other 47 states and Washington D C The California settlement includes a 5 million fine plus 45 million to be used at Harris discretion court papers show It resolves claims that JPMorgan tried to collect incorrect sums sold bad credit card debt engaged in robosigning of thousands of court documents it never reviewed and improperly obtained default judgments against military personnel The accord would end a lawsuit filed against the largest U S bank in the Los Angeles County Superior Court in May 2013 Court approval is required JPMorgan did not admit wrongdoing in agreeing to the settlements It has said it stopped filing lawsuits to collect credit card debt in 2011 A bank spokesman said the Mississippi and Wyoming cases have not been resolved The attorneys general for those states did not immediately respond to requests for comment The July settlement included payments of 136 million to the U S Consumer Financial Protection Bureau 30 million to the U S Office of the Comptroller of the Currency and 50 million in consumer refunds It also required JPMorgan to stop trying to collect on more than 528 000 consumer accounts
California s share of the refunds is about 10 million Harris said |
JPM | Feeling ignored Fed jolts markets to prime them for lift off | By Jonathan Spicer Ann Saphir and Howard Schneider NEW YORK SAN FRANCISCO WASHINGTON Reuters When the U S Federal Reserve tweaked its policy statement last week and put a December rate rise squarely back in play it took a calculated gamble that reaching for an old and controversial policy tool would get financial markets attention That gamble was to specifically reference the next policy meeting as a date of a possible lift off and it had the desired effect investors quickly rolled back bets that rates would stay near zero until next year But interviews with current and former Fed officials and with those close to policymakers show the decision to use what is called calendar guidance in central bank parlance and what some described as a hammer did not come easy Some officials felt that even mentioning a date in the context of a potential policy change would be taken not as a contingent expectation but as a promise that would be painful to break The last time the Fed flagged its next meeting for possible action was in 1999 as JPMorgan N JPM economist Michael Feroli pointed out It resorted to calendar based commitments of ultra easy policy during the global financial crisis and recession but ended that practice three years ago Yet Fed Chair Janet Yellen and her deputies got so frustrated that investors virtually ignored their message that a rate rise before the year end was probable that they decided last month it was a risk worth taking the interviews show As a result futures markets are now giving slightly better than even odds that rates will rise from near zero next month compared with mid October when the odds were less than 30 percent Graphic market rate expectations Fed officials and people familiar with their thinking say the central bank is comfortable with such market expectations ahead of the Dec 15 16 policy meeting the last of the year Last week s communication gambit one of Yellen s biggest in nearly two years as Fed chief suggests the central bank still considers a modest rate rise this year as its base scenario TIMELY FASHION It may also suggests that Fed policymakers are already lining up behind Yellen despite public comments that can sound at odds with her message The Oct 28 statement was passed by a 9 1 vote with two Fed governors who had earlier publicly embraced a delay in rate hikes joining the majority If a majority still believed that such a move would be premature then they could have just left the wording unchanged from their previous statement said Andrew Levin former advisor to Yellen and Dartmouth College economist Yellen herself reiterated on Wednesday that a lift off this year remained her preferred option when she told the House Financial Services Committee that moving in a timely fashion was prudent so long as the economy continued to perform the way it had so far And while the slackening growth in monthly payrolls convinced some investors that the Fed should wait several policymakers have been pointing out that slackening jobs was in fact a sign that the labor market recovery was nearly over Investors and economists who advocate more patience warn of a risks of market turbulence if the Fed lifts its rates while its peers in Europe Japan China and elsewhere are in an easing mode With rates having been near zero since late 2008 even a small move is expected to ripple through global markets boosting the dollar and drawing funds out of emerging markets In fact a brief but sharp market sell off in August triggered by a slowdown in China and fears of a global economic chill persuaded the Fed to leave rates steady in September The decision even though described as a close call by some policymakers led many investors to pare down their bets on a rate rise this year Since then Yellen her deputy Stanley Fischer and New York Fed President William Dudley had set out to reinforce the message that a gradual rise in rates would likely begin before year end in part because of an expected recovery in inflation thanks to stabilizing oil prices But Yellen s Sept 24 speech seen as crucial for conveying that message got drowned in the attention her health drew after she struggled to finish the speech and received medical assistance BLURRED MESSAGE Later a set of weak U S data and comments from Lael Brainard and Daniel Tarullo two influential Fed governors close to Yellen urging patience on rates further blurred the picture and intensified criticism of the Fed s communication On Oct 16 Dudley got an earful from Wall Street bankers and economists on a New York Fed advisory panel criticizing the Fed for its muddled message according to three people who attended the meeting The interviews with Fed officials and those close to the central bank suggest that it was around this time that the plan to hint at December in the next policy statement started taking shape Yellen her deputies and a few top staffers typically write the first draft of the statement two weeks before the policy meeting A so called teal book effectively formalizes the language a week later with feedback from other Fed presidents and governors Some Fed officials were uncomfortable with the innovation said a source with knowledge of how the decision was made but they agreed to back it because there was a sense that the market wasn t listening The December reference is not a commitment to a rate rise next month since the decision will still depend on whether economic developments will confirm or derail the Fed s medium term expectations for jobs growth and prices the sources said But the language allows both hawks and doves to endorse it and buys Yellen time to rally them around her plans while honing the Fed s message It s a tactical decision for Janet Yellen said Vincent Reinhart an economist with the American Enterprise Institute and former chief of the Fed s monetary affairs division
You will buy off some of your more hawkish colleagues by reassuring them that you are willing to tighten and you will buy off the dovish colleagues by convincing them that you can remain accommodative longer by starting sooner |
JPM | U S review of banks could spell trouble for energy companies | By Jessica Resnick Ault Reuters A recent U S regulatory review could force banks to scale back loans to energy companies whose revenues have been hit hard by falling oil prices and could force more oil drillers into bankruptcy analysts said In the coming weeks banking regulators including the Federal Reserve the Federal Deposit Insurance Corp and the Office of the Comptroller of the Currency are due to release the results of their regular look at banks loan books known as the shared national credit review The review was previously annual but is shifting to twice a year starting in 2016 With oil prices having plunged 60 percent from their peak in June 2014 revenues for energy companies have fallen giving them less money to pay interest on loans Hedging contracts bought many lenders time by bolstering their cash flow but those contracts are maturing Lenders will likely have to tighten the screws by scaling back credit lines or refusing to renew loans coming due At least some borrowers will struggle to repay their obligations and will have to reorganize or go under analysts said Energy companies are running for cover when it comes to cash flow and banks know it Lenders have been guarding themselves from the declining creditworthiness of the companies and that will continue said Mike Holland who oversees more than 4 billion of assets at Holland Co in New York In September the OCC met with banks including Wells Fargo N WFC Corp and JPMorgan Chase Co N JPM to discuss the impact of falling commodity prices on outstanding loans The banks declined to comment Until recently as long as companies kept paying interest many lenders were willing to look the other way as revenue fell Banks relaxed loan conditions known as covenants that for example required the company to generate a certain level of operating income relative to interest payment requirements The lenders want to avoid being the cause of a company s bankruptcy filing said Doug Getten a Houston based partner at law firm Paul Hastings who focuses on corporate finance adding that banks don t want to have to take over the companies and manage them In 2014 according to the shared credit report for that year regulators looked at about 788 6 billion of loans to commodities companies or about 25 percent of the loans that regulators looked at overall Bankers say they want to continue extending credit where they can Companies that have done the right thing and continue to do the right thing I think are going to continue to get some rope from their banks said Rich Gould managing director and head of energy credit and risk management at Wells Fargo speaking at a conference in Houston last month He was discussing banks in general and not his own in particular At least 10 companies have taken advantage of that flexibility government filings show This week Goodrich Petroleum said lenders had revised its 75 million credit facility allowing it greater flexibility through 2017
Earlier companies such as Halcon Resources Corp with assets in North Dakota and Texas had seen their covenants relaxed Some like EV Energy Partners even saw their borrowing bases rise in their case by 25 percent to 625 million in tandem with looser covenants The news may be bad for some energy companies but banks say they have set aside enough money to cover credit losses on the loans In last year s shared national credit review regulators said credit risk had not grown from the prior year |
BMY | Signs That Your Trading Will Ruin Your Retirement November 20 2019 | You have a significant retirement portfolio You re an experienced investor You ve done pretty well at picking stocks You probably even own a few of Zacks Top Retirement stock picks like
Bristol Myers Squibb BMY Civista Bancshares CIVB and Preferred Apartment Communities APTS
If you did something similar would it be advisable for you to trade your own retirement nest egg
Maybe if you re an exceptional investor who can expertly manage risk and keep up perfectly resolute emotional control in the face of market volatility Be that as it may for most investors there might be better ways to accomplish long term retirement investing objectives
That s because the risk reward scenario and investing approach is completely different for long term wealth building and active stock trading
Diversification vs Stock Picking
While stock picking can potentially generate outsized returns its excessive concentrated risk can present huge perils for retirement investors
In fact a study done by Hendrik Bessembinder revealed that only 4 of equities produced all of the stock market s gains over the last 90 years All other stocks broke even with the increases of 38 canceled out by the losses of the bottom 58
Those numbers reinforce that even if you are an experienced and talented stock picker your chances of success over a long period are very slim
Is Successful Investing a Mind Game
Most people think they can make rational investment decisions but research indicates the opposite is often true Investors followed in a DALBAR study performed significantly worse than the S P 500 For the 30 years between 1986 to 2015 the average investor earned just 3 66 whereas the S P 500 produced a 10 35 return
Importantly this period included the 1987 crash and big bear markets in 2000 and 2008 but also the bull market of the 1990s
This study suggests that one key reason for investor underperformance is trying to time volatile markets and that irrational behavior biases tend to compound investor mistakes
Curiously even experienced traders tend to underperform since they can t resist the emotional urge to make impulsive investment choices They might be overly self assured and miscalculate risk get attached to a price target or perceive a pattern that does not exist This behavioral fallacy over the long term can be disastrous with potential underperformance of a huge number of dollars disrupting your retirement
The Bottom Line for Retirement Investors
Your retirement portfolio ought to be dealt with a technique of performance over decades not days weeks or quarters Most self coordinated investors will in general miss the mark with regards to long term outcomes
Does that mean you should quit trading Not really One plan is to take 10 of your investable resources and trade to create alpha and look for outsized returns
But the bulk of your wealth those assets earmarked for retirement should be invested using a more measured conservative risk management approach to generate steady compounded returns so you can safely reach your retirement goals
Do You Know the Top 9 Retirement Investing Mistakes
Whether you re planning to retire early or not don t let investing mistakes derail your plans
If you have 500 000 or more to invest and want to learn more click the link to download our free report 9 Retirement Mistakes that will Ruin Your Retirement This report will help you steer clear of the most common mistakes like trying to time the market lack of diversification in your portfolio and many more Get Your FREE Guide Now |
C | PRECIOUS Gold firm near lifetime high econ worries linger | Spot gold eyes 1 796 technicals
Coming Up U S Federal budget July 1800 GMT
Updates prices adds quotes
By Lewa Pardomuan
SINGAPORE Aug 10 Reuters Gold ticked higher on
Wednesday hovering near a lifetime high around 1 778 an ounce
struck in the previous session but further gains could be
capped by a rebound in equities after the U S Federal Reserve s
vow to keep rates near zero
Stocks bounced in Asia after U S shares jumped on the
Federal Reserve s unprecedented pledge to keep interest rates
near zero for at least two years although the move confirmed
fears the U S economy will remain weak for far longer than
previously forecast
Gold added 11 89 to 1 755 29 an ounce by 0258
GMT having hit a record at 1 778 29 on Tuesday in its biggest
three day rally since the financial crisis in late 2008 after
equities plunged on fears over the threat to economic growth
from the U S and euro debt crises
Generally speaking the panic is subsiding for the moment
I would expect that gold will consolidate at these levels for
a while before we get any sort of clear idea of the sort of next
major moves said Citigroup analyst David Thurtell
I think there are enough concerns about sovereign debts
and weakening growth that people will buy dips so it should
remain supported
U S December gold futures rose 24 4 to 1 767 4 an
ounce within sight of Tuesday s record of about 1 782 an
ounce
Tracking strong global prices the most active gold contract
on the Tokyo Commodity Exchange June 2012 hit a record
for a second consecutive day at 4 408 yen a gram
The Fed pledged to hold benchmark rates at rock bottom lows
until mid 2013 and opened the door to other tools to support
growth saying that U S economic growth was proving
considerably weaker than expected
Global stock markets had been tumbling since the start of
August on fears the United States would slide back into
recession after a downgrade of the U S credit rating on
Friday and on the ever expanding euro zone debt crisis
MSCI s all country world stock index
was about 17 percent below its May peak on Wednesday after
slipping as far as 20 percent the generally accepted definition
of a bear market on Tuesday
Premiums for gold bars remained steady in Asia although
jewellers were on the sidelines as they closely watched
movements in the equities markets
We ll wait and see if stocks markets will continue to
stabilise because if it will then gold will drop down a bit
said a physical dealer in Hong Kong
But I think there s no change in sentiments for gold
Interest rates in the U S will be kept low in the next two
years and it should benefit gold for the time being
High bullion prices turned off demand in main consumer
India but a correction could prompt bargain hunting from
jewellers as the busy wedding season resumes later this month
Gold jewellery is an essential part of the dowry basket
parents give daughters at weddings
In the energy market Brent crude rose 2 after the Fed s
promise to extend near zero interest rates for two more years
weighed on the dollar and helped reverse a steep slump in oil
Precious metals prices 0258 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1755 29 11 89 0 68 23 66
Spot Silver 38 34 0 71 1 89 24 24
Spot Platinum 1752 50 3 90 0 22 0 85
Spot Palladium 745 25 11 30 1 54 6 79
TOCOM Gold 4343 00 5 00 0 11 16 47 85622
TOCOM Platinum 4375 00 86 00 2 01 6 84 9473
TOCOM Silver 94 50 1 90 1 97 16 67 858
TOCOM Palladium 1865 00 96 00 5 43 11 06 353
COMEX GOLD DEC1 1631 20 15 00 0 93 14 76 136930
COMEX SILVER SEP1 40 11 0 31 0 78 29 63 44407
Euro Dollar 1 4347
Dollar Yen 76 84
TOCOM prices in yen per gram Spot prices in per ounce
COMEX gold and silver contracts show the most active months
Reporting by Lewa Pardomuan Editing by |
C | PRECIOUS Gold steadies near lifetime high econ worries linger | Spot gold eyes 1 796 technicals
Coming Up U S Federal budget July 1800 GMT
Updates prices
By Lewa Pardomuan
SINGAPORE Aug 10 Reuters Gold held steady on Wednesday
hovering near a lifetime high around 1 778 an ounce struck in
the previous session but further gains could be capped by a
rebound in equities after the U S Federal Reserve s vow to keep
rates near zero
Stocks bounced in Asia after U S shares jumped on the
Federal Reserve s unprecedented pledge to keep interest rates
near zero for at least two years although the move confirmed
fears the U S economy will remain weak for far longer than
previously forecast
Gold added 6 91 to 1 750 31 an ounce by 0620 GMT
having hit a record at 1 778 29 on Tuesday in its biggest
three day rally since the financial crisis in late 2008 after
equities plunged on fears over the threat to economic growth
from the U S and euro debt crises
Generally speaking the panic is subsiding for the moment
I would expect that gold will consolidate at these levels for
a while before we get any sort of clear idea of the sort of next
major moves said Citigroup analyst David Thurtell
I think there are enough concerns about sovereign debts
and weakening growth that people will buy dips so it should
remain supported
U S December gold futures rose 9 5 to 1 752 5 an
ounce within sight of Tuesday s record of about 1 782 an
ounce
Tracking strong global prices the most active gold contract
on the Tokyo Commodity Exchange June 2012 hit a record
for a second consecutive day at 4 408 yen a gram
Global stock markets had been tumbling since the start of
August on fears the United States would slide back into
recession after a downgrade of the U S credit rating on Friday
and on the ever expanding euro zone debt crisis
MSCI s all country world stock index was
about 17 percent below its May peak on Wednesday after slipping
as far as 20 percent the generally accepted definition of a
bear market on Tuesday
We ll wait and see if stocks markets will continue to
stabilise because if they will then gold will drop down a
bit said a physical dealer in Hong Kong
But I think there s no change in sentiment for gold
Interest rates in the U S will be kept low in the next two
years and it should benefit gold for the time being
Premiums for gold bars remained steady in Singapore and Hong
Kong while dealers in Tokyo were offering excess gold bars to
trading houses in Southeast Asia after record bullion prices
triggered selling in Japan
Gold bars were quoted at a discount of 25 cents in Tokyo
The general public has been selling back their gold so
that s why we are offering gold bars not only to Singapore but
also to other countries in Southeast Asia said a physical
dealer in Tokyo
Southeast Asia is still buying gold at this moment
Vietnam approved 5 tonnes of gold imports on Tuesday and
could double the quantity soon as surging prices touched off a
frenzy at gold dealers and jewellers
High bullion prices blunted demand in main consumer India
but a correction could prompt bargain hunting from jewellers as
the busy wedding season resumes later this month
Gold jewellery is an essential part of the dowry basket
parents give daughters at Indian weddings
In the energy market Brent crude rose more than 3 on
Wednesday after the Fed promised to extend near zero interest
rates for two more years
Precious metals prices 0620 GMT
Metal Last Change Pct chg YTD pct chg
Volume
Spot Gold 1750 31 6 91 0 40 23 31
Spot Silver 37 84 0 21 0 56 22 62
Spot Platinum 1753 49 4 89 0 28 0 79
Spot Palladium 743 47 9 52 1 30 7 01
TOCOM Gold 4325 00 23 00 0 53 15 98 102001
TOCOM Platinum 4368 00 79 00 1 84 6 98 12333
TOCOM Silver 93 40 3 00 3 11 15 31 1127
TOCOM Palladium 1860 00 91 00 5 14 11 30 382
COMEX GOLD DEC1 1631 20 15 00 0 93 14 76 136930
COMEX SILVER SEP1 40 11 0 31 0 78 29 63 44407
Euro Dollar 1 4324
Dollar Yen 76 81
TOCOM prices in yen per gram Spot prices in per ounce
COMEX gold and silver contracts show the most active months
Reporting by Lewa Pardomuan Editing by Sugita Katyal |
C | South African ETFs Gold vs Equities | As the fourth largest producer of gold in the world the fortunes of the South African economy are often viewed as hitched to the performance of the yellow metal itself When it comes to ETFs the correlations between gold and South African equities are not always as intimate as some investors think For example in the past month the iShares MSCI South Africa Index Fund EZA has slumped 0 7 while the SPDR Gold Shares GLD is higher by 0 2 That indicates that EZA does not always move in lockstep with gold futures Nor is EZA a lock to respond favorably when production of gold platinum and palladium declines That much was affirmed earlier this year when even though platinum and palladium futures surged amid labor unrest in South Africa EZA did not South Africa is the world s largest platinum producer and the second largest palladium producer behind Russia Equity ExposureOne obvious reason for the EZA s recent turbulence is its exposure to mining equities The ETF devotes 18 of its weight to the materials sector and several marquee gold and silver miners appear among the fund s top 10 holdings Appearing among the top ten weightings in the fund are names including Anglogold Ashanti Limited Impala Platinum Holdings and Gold Fields Ltd There are currently 52 individual equity names represented in the underlying basket of EZA said Street One Financial Vice President Paul Weisbruch in a note published today While the exposure to mining names has been a drag on EZA it is worth noting the fund has sharply outperformed mining ETFs in the past month Over that time the Market Vectors Gold Miners ETF and the Global X Silver Miners ETF have plunged 7 46 percent and eight percent respectively Year to date GDX is off nearly 8 while EZA has jumped 6 2 Still EZA has lagged the broader emerging markets universe as measured by the iShares MSCI Emerging Markets Index Fund EEM Year to date EZA has lagged the broader MSCI Emerging Markets Index up 5 46 versus the benchmark rallying 8 03 during the same time period However EZA has provided a relative safe haven in the context of Emerging Markets countries in the trailing five year period as the ETF is down only 7 70 versus the MSCI Emerging Markets Index losing 16 48 during this time frame said Weisbruch The Pros And ConsAs for EZA there is an easily defined bull bear case for the fund and South Africa at large The country is Africa s largest economy and the continent is viewed by many foreign investors as the last great untapped investment frontier For its part EZA is diverse at the sector level as financials account for a larger percentage of the ETF s weight than do materials names Consumer discretionary stocks are just behind materials in the pecking order and telecommunications names receive an allocation north of 13 The bear case revolves around the adverse impact labor strife can have and has had on the rand South Africa s currency Last month Standard Poor s paring South Africa s credit rating by one notch to BBB with a negative outlook as labor tensions in South Africa Speaking of labor woes South Africa s 20 unemployment rate cannot be ignored c 2012 Benzinga com Benzinga does not provide investment advice All rights reserved |
C | European And Asian FX Minor Gains Is Phrase Of The Week | EUR USDThe pair settled the week with minor gains after lawmakers in Europe finally agreed on terms to ensure that Greece receives its next aid tranche While this removes near term risk of a solvency crisis there is a risk that the country will fail to carry out the proposed debt buyback in an orderly manner In fact analysts at Citigroup said they view the Troika s assumptions on GDP growth for Greece as far too optimistic and do not expect Greece to meet the new debt to GDP target of 124 by 2020 More so press reports suggested that Greek bankers are planning to express their opposition to the credit sector s likely participation in the bond buyback program at a meeting with Finance Minister Stournaras today In addition to that Moody s says Greek debt is unsustainable even after the aid deal and sees high odds of a Greek default on privately held debt In terms of technical levels supports are seen at 1 2970 39 and then at the 10 DMA line at 1 2917 On the other hand resistance levels are seen at 1 3075 84 and then at 1 3129 GBP USDThe pair mirrored EUR USD throughout the week and settled little changed as market participants digested what looked like never ending commentary relating to the fiscal cliff crisis in the US as well as the latest proposal to avoid solvency crisis in Greece The next major event for the UK will be the Autumn Statement by the Chancellor George Osborne where he is set to reiterate his pledge to return to prudent fiscal house management On that note according to the Institute for Fiscal Studies UK Chancellor Osborne may have to extend his austerity program by another year to 2018 Also it is worth remembering that Moody s recently said that it will revisit the Aaa rating and outlook in the first few months of 2013 to assess the impact of these challenges and of the government s upcoming autumn Statement In terms of technical levels supports are seen at the 10 DMA and 30 DMA lines at 1 5991 and then at 1 5962 On the other hand resistance levels are seen at 1 6100 and then at 1 6133 USD JPYThe pair settled the week with minor gains as market participants continued to price in likelihood of further monetary policy easing by the BoJ This view was again driven by the latest comments from Japan s opposition LDP leader Abe who reiterated the BoJ must pursue bold monetary easing adding that the government and BoJ can discuss a new inflation target Abe said BoJ must set 2 inflation target its current goal of 1 is not enough In terms of technical levels supports are seen at 81 98 68 and then at 81 50 On the other hand resistance levels are seen at 82 84 94 and then at 83 00 |
C | Major Asset Classes November 2012 Performance Review | The fiscal cliff is drawing closer in the US as the recession in Europe rolls on but the major asset classes overall posted a modest gain for November The Global Market Index GMI earned 0 8 last month and is up 9 8 on the year The big winner in November foreign stocks in developed markets as tracked by MSCI EAFE which climbed 2 4 last month But EAFE s fixed income counterpart Citigroup World Government Bond Index ex US was on the leading edge of losses closely followed by REITS each posting 0 4 declines Otherwise the month to date numbers were red ink free For the year so far the performance ledger has remained comfortably in the black for all the major asset classes Cash of course continues to go nowhere fast but risky assets have delivered varying shades of gain so far this year By some accounts it s an odd sight broadly distributed profits for all the primary markets amid so much anxiety over what happens next for the big picture Washington brinkmanship and a delay in reaching an agreement on the fiscal cliff are likely to rattle markets says John Praveen chief investment strategist at Prudential International Investments Advisers These risks and uncertainties are likely to keep markets volatile The volatility so far in 2012 hasn t been a problem But if there s a price to pay for so much uncertainty will December become the weak link in an otherwise profitable year |
C | Obama s Bloomberg Interview Sends SPY Down | President Obama gave an interview with Julianna Goldman from Bloomberg Tuesday regarding the ongoing fiscal cliff talks His Bottom LinePresident Obama s main point focused on how the Republican offer doesn t go far enough to raising revenues necessary to take on the deficit Obama said that what Republicans need to do is acknowledge that the tax rate on the wealthy is going up The president said that what business leaders want most of all is an increase in consumer confidence There are many areas requiring improvement including taxes entitlements loopholes and deductions The president noted that a package that does it all would not be likely before the so called fiscal cliff He laid out a framework for how he would like this discussion to continue letting the tax rates go up at the end of this year work on loopholes and deductions and simplifying the tax code in 2013 then focus on entitlement reforms after that It is important to note that he said he would be flexible within this framework and only this framework EntitlementsObama stated that he would like to protect the core of entitlement programs but some parts may be on the table For instance he would like to look at how to reduce long term costs but does not favor slashing benefits for current beneficiaries The president also proposed a higher tax rate on income above 250 000 only This would apply to 100 percent of Americans but would have no impact on those earning less than that threshold roughly 98 of the country When asked if he would like to bring in top executives to advise his economic team the president emphatically said that he would love to have them He also derided the confirmation process and talked about how most business people are turned off by the mud slinging and name dragging of the confirmation process Strained RelationsThe president also stated that he has spoken with business leaders who are ready to invest and ready to hire but are waiting for some assurance from the government that the long term debt problem will be addressed and that pro growth measures are being taken Obama also acknowledged that White House relations with business leaders has been strained in his first term but hopes they will improve for his second term Market ImpactThe president finished by saying that he believes in the potential for a deal as talks move forward At the beginning of the interview the SPDR S P 500 ETF Trust SPY a great indicator of overall U S economic conditions was at 141 21 The S P 500 showed minor fluctuations during the interview but by the end was at 141 09 down from its open of 141 47 a 0 27 decrease c 2012 Benzinga com Benzinga does not provide investment advice All rights reserved |
C | Japan Is Cheap But Watch The Yen | It has been a familiar battle cry for Japan bulls for what feels like ages now Japanese equities are cheap on a valuation basis The first problem is due to unfavorable demographics and a severe bout with deflation Japanese equities have been in a bear market for well over two decades The second problem has been the soaring yen which punished Japanese exporters The last five years have been especially difficult from the global recession and financial crisis to the earthquake and tsunami of 2010 and were compounded by an ever rising yen that made Japanese exports less competitive in the global marketplace WisdomTree Research Director Jeremy Schwartz said in a recent note Over those five years the iShares MSCI Japan Index Fund the largest Japan ETF by assets has lost nearly 34 of its value As measured by ETFs Japanese equities have had almost perfect inverse correlation to the yen Over the past five years the CurrencyShares Japanese Yen Trust FXY has jumped 33 5 The Case For ValueStill there is a value case that can be made for Japan the world s third largest economy Of course the yen will play a part in any scenario involving the Japanese economy good or bad but there were some positive signs earlier this year As one piece of highly anecdotal evidence just look at the first quarter of 2012 when the yen weakened 7 and Japan was the best performing country in the developed world markets Schwartz noted In the past three months FXY has lost more than 4 as traders have begun pricing in a victory for Shinzo Abe and his Liberal Democratic Party in Japan s December 16 elections Abe himself a former prime minister has adopted a simple campaign platform Much as U S politician would run for president pledging to reduce taxes Abe has vowed to weaken the yen Abe s Fed Speak After a third round of quantitative easing was announced by the Federal Reserve earlier this year some U S investors joked about QE ever Japan could really go down that path as Abe s political talk has included terms such as unlimited monetary easing That explains why the ProShares UltraShort Yen a double leveraged inverse play on the yen has rallied 3 in the past month Many of the nation s exporters have started to see their stocks react very positively on speculation that the yen s very outsized strength over the past five years may be set to reverse course with an Abe victory in the December 16 election said Schwartz The Geographic FilterInvestors looking to participate in Japan s upside while reducing potential yen induced headaches should consider the WisdomTree Japan Hedged Equity Fund December marks the first month that DXJ s index will trade with a geographic filter to remove companies that derive the bulk of their revenue from Japan The index also now caps sector weights at 25 Industrial names currently represent over 24 of DXJ s weight while discretionary technology health care and materials names also garner double digit allocation As a way of trimming yen exposure DXJ has proven even more profitable than YCS as the former has surged 4 in the past month Investors are taking notice DXJ had 516 million in assets under management as of mid November The ETF started trading today with nearly 648 million according to WisdomTree data c 2012 Benzinga com Benzinga does not provide investment advice All rights reserved |
JPM | Ex JPMorgan traders citing arrest risk avoid SEC deposition in N Y | By Nate Raymond NEW YORK Reuters Two former JPMorgan Chase Co N JPM traders living abroad who face U S charges over the bank s 6 2 billion London Whale scandal won a bid on Wednesday to avoid sitting for a deposition in New York where their lawyers say their arrest is likely The decision by U S District Judge George Daniels in Manhattan marked another setback for U S authorities who have been unable to secure the extradition of the traders Javier Martin Artajo and Julien Grout The ruling came in a lawsuit by the U S Securities and Exchange Commission that was filed at the same time that federal prosecutors announced criminal charges against the traders in April 2013 Martin Artajo and Grout face criminal charges including securities and wire fraud for hiding losses within JPMorgan s chief investment office in London by marking positions in a credit derivatives portfolio at inflated prices Those losses were part of an overall 6 2 billion trading loss suffered by the bank centered on Bruno Iksil an ex trader known as the London Whale Martin Artajo supervised Iksil while Grout worked for Iksil In 2013 JPMorgan agreed to pay more than 1 billion to settle U S and British probes into the losses U S authorities call both men fugitives Martin Artajo lives in Spain where a court in April rejected his extradition to the United States while Grout lives in France which does not extradite its own citizens Soon after the Spanish decision the SEC whose civil case continued on said it wanted to depose both men in New York Their lawyers objected saying they faced certain arrest if they came to New York and that the SEC was seeking to force them into a significant default judgment by not appearing At a hearing Wednesday Daniels ruled that while he would not allow them to testify remotely at trial they could be deposed abroad instead of New York as soon as April and that their depositions could be used in lieu of testimony at trial The depositions are going to take place where the defendants are Daniels said They are going to take place in Spain France or wherever the parties agree to go The defendants lawyers welcomed the ruling which Edward Little one of Grout s lawyers said gives out client a chance to defend himself William Leone Martin Artajo s lawyer said he looked forward to vindicating his client s interests SEC representatives did not respond to requests for comment
The cases in U S District Court Southern District of New York are U S v Martin Artajo No 13 cr 00707 and Securities and Exchange Commission v Martin Artajo No 13 05677 |
JPM | Barclays says to pay new chief Staley up to 12 6 million a year | By Steve Slater LONDON Reuters Barclays Plc L BARC said it will pay incoming chief executive James Jes Staley up to 8 24 million pounds 12 6 million a year after appointing the former JPMorgan N JPM investment bank boss to one of the most prominent posts in British business Staley will join Barclays as CEO at the start of December having been widely expected to be appointed after sources and other media reports this month said he had been chosen and just needed regulatory approval Boston Massachusetts born Staley 58 faces a number of challenges at Barclays including improving its reputation after a series of scandals cutting costs to try and improve profitability and deciding how big an investment bank it should keep in the wake of tougher regulations Staley said on Wednesday he planned to complete a restructuring of the investment bank and said Barclays must avoid an adversarial relationship with regulators We will complete the necessary transformation and repositioning of the investment bank to a less capital intensive model Staley said in a memo to staff Barclays Chairman John McFarlane said Staley had the appropriate leadership talent and wide ranging experience to improve shareholder value and take the bank forward In particular he understands corporate and investment banking well the re positioning of which is one of our major priorities McFarlane said Investors and analysts have said Staley should improve morale and set a clear strategy for the investment bank after years of uncertainty but they warned he should not build it back up aggressively We had warmed to Barclays on the basis that it was de emphasizing the relatively low return investment banking business and we would see a material reversal of this strategy as a negative to the investment case Shore Capital analyst Gary Greenwood said Staley s appointment is the second time in recent years Barclays has named an American investment banker as CEO the last being Bob Diamond who quit in 2012 over the Libor scandal Barclays shares were down 0 8 percent at 0740 GMT in a broadly flat European bank sector SX7P Barclays said Staley s annual pay will consist of a salary of 1 2 million pounds a role based allowance of 1 15 million pounds in shares a cash allowance of up to 400 000 pounds and up to 5 5 million pounds in annual bonus STANDARD BENEFITS He will be granted about 1 9 million pounds of Barclays shares to compensate for an unvested share award granted by JPMorgan He will also receive standard benefits including medical cover life assurance and relocation costs The keen yachtsman previously ran JPMorgan s investment bank and asset management business and had been at the U S bank for 34 years before leaving in early 2013 to join U S hedge fund firm BlueMountain Capital Management He made the shortlist when Barclays last looked for a CEO three years ago Previous Barclays CEO Antony Jenkins was fired in July after losing the support of non executive directors in a clash over style and the pace of the bank s turnaround The bank is just over halfway through a three year plan to cut 19 000 jobs including 7 000 in the investment bank still faces litigation issues and is trying to improve returns McFarlane said he knew Staley well and the pair were in agreement on the way forward in particular the need to accelerate the delivery of improved shareholder returns Staley understood the business and also the importance of cultural reform and the need to conduct our business in a way that we can all be proud of McFarlane said Barclays has run into trouble with authorities and regulators over past conduct issues including alleged rigging of Libor benchmark rates and foreign exchange manipulation Staley said his respect for the role of regulators was unequivocal Core to that objective is having relationships with regulators that are collaborative not adversarial Staley said in the memo We must therefore complete the cultural transformation of the group There can be no retreat from becoming a values driven organization which conducts itself with integrity at all times The memo said the bank had tremendous assets but needed to do more and generate better returns for shareholders They have been patient and now we must deliver for them
Staley who said he will move with his family to Britain joined JPMorgan in 1979 and spent eight years in its Brazilian business He helped found its equities business and later became CEO of asset management He was long seen as a possible successor to JPMorgan CEO Jamie Dimon but was sidelined after a management reshuffle in 2012 and left a year later |
JPM | U S Fed puts December rate hike firmly on the agenda | By Lindsay Dunsmuir and Jason Lange WASHINGTON Reuters The U S Federal Reserve kept interest rates unchanged on Wednesday and in a direct reference to its next policy meeting put a December rate hike firmly in play Investors had expected the Fed to remain pat on rates but the overt reference to December came as a surprise The central bank also downplayed recent global financial market turmoil and said the U S labor market was still healing despite a slower pace of job growth In determining whether it will be appropriate to raise the target range at its next meeting the committee will assess progress both realized and expected toward its objectives of maximum employment and 2 percent inflation the Fed said in a statement after its latest two day policy meeting Investors quickly placed bets reflecting a higher chance the U S central bank will raise rates in December with futures contracts implying a 43 percent possibility compared to 34 percent prior to the statement The Fed is seriously considering a December rate hike said Harm Bandholz an economist at UniCredit in New York Going into the Fed meeting this week the market had viewed March as the most likely time for the central bank to begin its rates liftoff but it now sees a greater chance of that happening in late January The U S dollar rose sharply and yields for U S government debt soared in anticipation of higher rates U S stock prices initially fell but regained momentum and closed sharply higher Michael Feroli a former Fed economist now at JPMorgan N JPM said the Fed statement was the first since 1999 in which policymakers pointed to a possible rate increase at the next meeting By specifically referring to that meeting they are basically testing the waters a bit said Aneta Markowska an economist at Societe Generale PA SOGN in New York She described it as a subtle attempt to gently nudge the market in that direction LEAVING DOOR OPEN The Fed has been struggling to convince investors a rate hike was imminent in the wake of data this month that showed U S employers slammed the brakes on hiring in August and September But it countered the skepticism on Wednesday by saying even slower hiring was still enough to get it closer to its goal of maximum employment Central bank policymakers also pointed to solid rates of growth in consumer spending and business investment while eliminating a reference from their previous statement warning a global economic slowdown could sap U S economic strength Fed Chair Janet Yellen has been saying for much of this year that a rate hike would likely be needed in 2015 to keep the economy from eventually overheating More recently two Fed governors urged caution over rate hikes while questioning Yellen s views on inflation though such doubts appeared muted in Wednesday s statement The Fed now has several important economic readings to parse including two monthly employment reports before it makes up its mind on whether to tighten policy at its Dec 15 16 meeting It will also get a chance to see how monetary policy easing in Europe Japan and China plays out in financial markets Easy money policies abroad push the dollar higher hurting U S exporters and making it harder for the Fed to get inflation back up to its 2 percent target That may explain why the Fed sought to leave the door open for a rate hike rather than paint the economy as fully ready for a monetary policy tightening
The Fed has dialed down its anxiety over international developments but it s best to play it safe said Brian Jacobsen a portfolio strategist at Wells Fargo N WFC Funds Management in Menomonee Falls Wisconsin |
BMY | AVEO Pharmaceuticals AVEO Q3 Earnings Revenues Top Mark | AVEO Pharmaceuticals Inc NASDAQ AVEO reported earnings of 10 cents per share in the third quarter of 2019 surpassing the Zacks Consensus Estimate of 1 cent It also rebounded from the year ago loss of 18 cents
The company s top line comprises collaboration and licensing revenues plus partnership royalties Total revenues in the reported quarter were 25 7 million up from 2 5 million in the year ago period Revenues also comprehensively beat the Zacks Consensus Estimate of 13 million
Shares of AVEO were up 8 8 following the company s earnings release on Nov 12 However the stock has plunged 65 so far this year against the increase of 1 2
In August 2017 AVEO and partner EUSA Pharma received an approval from the European Commission of its VEGF tyrosine kinase inhibitor Fotivda tivozanib for the first line treatment of advanced renal cell carcinoma RCC It is the first approved drug in the company s portfolio AVEO is focused on launching the medicine across Europe and other countries
Operating Expenses
Research development expenses were down 23 1 year over year to 4 million However general and administrative expenses increased 7 4 year over year to 2 9 million
Cash Guidance
AVEO had around 57 7 million worth of cash cash equivalents and marketable securities as of Sep 30 2019 compared with 40 2 million on June 30 2019 The company believes that this will help fund its planned operations through the second quarter of 2021
Other Updates
In September 2019 AVEO announced from the second prespecified analysis of overall survival OS in a late stage TIVO 3 study on Fotivda This randomized open label phase III study evaluated Fotivda for the treatment of patients with highly refractory metastatic renal cell carcinoma RCC compared with Bayer DE BAYGN AG s OTC BAYRY Nexavar sorafenib
These results include an OS hazard ratio of less than one that favors Fotivda
Earlier this month AVEO provided a regulatory update after a meeting with the FDA authorities to discuss OS results from the phase III TIVO 3 study to proceed with a New Drug Application NDA for Fotivda The company plans to file an NDA for Fotivda in the first quarter of 2020 and expects to report results from the final OS analysis in June 2020
However during the review if the final analysis yields an OS hazard ratio of more than 1 AVEO will withdraw its NDA for Fotivda
Meanwhile in September 2019 AVEO initiated enrollment in the Ib II DEDUCTIVE study evaluating Fotivda in combination with AstraZeneca s NYSE AZN PD L1 inhibitor Imfinzi durvalumab for the first line treatment of patients with advanced unresectable hepatocellular carcinoma who have not received prior systemic therapy
AVEO is also evaluating Fotivda in combination with Bristol Myers NYSE BMY PD 1 inhibitor Opdivo nivolumab in the Ib II TiNivo study for the treatment of advanced or metastatic RCC
Apart from Fotivda AVEO has a promising candidate ficlatuzumab in its pipeline It is currently being evaluated in early mid stage studies for various oncological indications Last week AVEO along with partner Biodesix Inc initiated the phase II CyFi 2 study which evaluated ficlatuzumab in combination with high dose cytarabine versus high dose cytarabine alone in patients with relapsed refractory acute myeloid leukemia AML
AVEO Pharmaceuticals Inc Price Consensus and EPS Surprise
Zacks Rank
AVEO currently carries a Zacks Rank 2 Buy You can see
Breakout Biotech Stocks with Triple Digit Profit Potential
The biotech sector is projected to surge beyond 775 billion by 2024 as scientists develop treatments for thousands of diseases They re also finding ways to edit the human genome to literally erase our vulnerability to these diseases Zacks has just released Century of Biology 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance Our recent biotech recommendations have produced gains of 98 119 and 164 in as little as 1 month The stocks in this report could perform even better |
BMY | Bristol Myers Stock Pattern Triggers A 37 Surge | Bristol Myers Squibb NYSE BMY and Celgene NASDAQ CELG are expected to merge into a single company before the end of the year The deal will create the fifth largest pharmaceutical company in the world with sales of approximately 42 billion in 2019
Bristol Myers fell sharply after the deal was announced in early January In late April the stock was still in the doldrums and it seemed like the market does not approve the Celgene NASDAQ CELG deal But a quick Elliott Wave analysis of BMY s daily chart revealed a different picture We shared it with our readers on April 26th
Bristol Myers was hovering below 46 a share down from 77 in 2016 However the structure of this decline looked like an A B C flat correction Waves A and B were simple a b c zigzags while wave C was shaping up as an ending diagonal pattern
According to the theory once a correction is over the larger trend resumes Since Bristol Myers was clearly in an uptrend prior to July 2016 we thought it makes sense to expect a bullish reversal once wave 5 of C is over As of this writing the BMY CELG deal is still pending but the market seems to be much more optimistic about it
Wave 5 fell to 42 48 in July to complete the ending diagonal in wave C Yesterday the stock closed at 58 51 for a total gain of 37 7 in less than four months With the bullish reversal already in place we can confirm Bristol Myers uptrend has resumed Of course it won t move in a straight line but as long as the 42 48 bottom holds investors can feel confident buying the dips |
BMY | Should Value Investors Buy Bristol Myers Squibb BMY Stock | While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks we also know that investors tend to develop their own individual strategies With this in mind we are always looking at value growth and momentum trends to discover great companies
Looking at the history of these trends perhaps none is more beloved than value investing This strategy simply looks to identify companies that are being undervalued by the broader market Value investors use a variety of methods including tried and true valuation metrics to find these stocks
On top of the Zacks Rank investors can also look at our innovative Style Scores system to find stocks with specific traits For example value investors will want to focus on the Value category Stocks with high Zacks Ranks and A grades for Value will be some of the highest quality value stocks on the market today
Bristol Myers Squibb BMY is a stock many investors are watching right now BMY is currently holding a Zacks Rank of 2 Buy and a Value grade of A The stock holds a P E ratio of 11 31 while its industry has an average P E of 14 75 Over the last 12 months BMY s Forward P E has been as high as 13 54 and as low as 9 22 with a median of 10 71
Investors will also notice that BMY has a PEG ratio of 1 14 This popular metric is similar to the widely known P E ratio with the difference being that the PEG ratio also takes into account the company s expected earnings growth rate BMY s industry currently sports an average PEG of 1 88 Over the last 12 months BMY s PEG has been as high as 2 48 and as low as 1 07 with a median of 2 01
Investors should also recognize that BMY has a P B ratio of 5 37 The P B is a method of comparing a stock s market value to its book value which is defined as total assets minus total liabilities This company s current P B looks solid when compared to its industry s average P B of 6 40 Within the past 52 weeks BMY s P B has been as high as 6 42 and as low as 4 33 with a median of 5 05
Value investors also frequently use the P S ratio This metric is found by dividing a stock s price with the company s revenue Some people prefer this metric because sales are harder to manipulate on an income statement This means it could be a truer performance indicator BMY has a P S ratio of 3 95 This compares to its industry s average P S of 3 99
Finally we should also recognize that BMY has a P CF ratio of 15 01 This metric takes into account a company s operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook BMY s P CF compares to its industry s average P CF of 15 46 BMY s P CF has been as high as 42 24 and as low as 10 13 with a median of 13 30 all within the past year
Value investors will likely look at more than just these metrics but the above data helps show that Bristol Myers Squibb is likely undervalued currently And when considering the strength of its earnings outlook BMY sticks out at as one of the market s strongest value stocks |
BMY | Novartis Receives FDA Nod For Adakveo In Sickle Cell Disease | Novartis NYSE NVS announced that the FDA has approved Adakveo crizanlizumab to reduce the frequency of vaso occlusive crises VOCs or pain crises in adult and pediatric patients aged 16 years or above with sickle cell disease SCD The FDA s approval was based on the results of the 52 week randomized placebo controlled SUSTAIN study The study results showed that Adakveo previously known as SEG101 reduced the annual rate of sickle cell pain crises by 45 compared to placebo 1 63 vs 2 98 and the annual rate of days hospitalized 4 vs 6 87 By binding to P selectin on the surface of the activated endothelium and platelets Adakveo blocks interactions between endothelial cells platelets red blood cells and leukocytesThe approval comes approximately two months ahead of FDA s priority review action date Approximately 100 000 people in the United States most of whom are of African descent suffer from SCD We remind investors that Global Blood Therapeutics NASDAQ GBT is also evaluating voxelotor in patients with SCD The FDA accepted for filing the company s New Drug Application NDA seeking accelerated approval of the candidate for the treatment of SCD The FDA granted Priority Review and assigned a Prescription Drug User Fee Act target action date of Feb 26 2020 bluebird bio NASDAQ BLUE is also evaluating LentiGlobin in SCD Approval of new drugs bodes well for Novartis The company has a strong oncology portfolio along with other key drugs which continue to boost sales However it is facing the loss of patent protection for some of these drugs Shares of the company have gained 5 year to date compared with the s growth of 4 7 Concurrently Novartis announced that the Committee for Medicinal Products for Human Use CHMP of the European Medicines Agency EMA has adopted a positive opinion for multiple sclerosis drug Mayzent siponimod The CHMP recommended approval of the drug for the treatment of adult patients with secondary progressive multiple sclerosis SPMS with active disease evidenced by relapses or imaging features of inflammatory activity The CHMP opinion is based on the phase III EXPAND study the largest randomized clinical study in a broad SPMS patient population EDSS score 3 0 to 6 5 at baseline which showed that Mayzent significantly reduced the risk of disease progression including physical disability and cognitive decline The drug is already approved in the United States for the treatment of relapsing forms of multiple sclerosis RMS including clinically isolated syndrome CIS relapsing remitting disease and active secondary progressive disease in adults Zacks Rank A Stock to ConsiderNovartis currently carries a Zacks Rank 3 Hold A better ranked large cap drug stock is Bristol Myers Squibb Company NYSE BMY carrying a Zacks Rank 2 Buy You can see Bristol Myers earnings estimates increased to 4 33 from 4 28 for 2019 over the past 30 days 7 Best Stocks for the Next 30 DaysJust released Experts distill 7 elite stocks from the current list of 220 Zacks Rank 1 Strong Buys They deem these tickers Most Likely for Early Price Pops Since 1988 the full list has beaten the market more than 2X over with an average gain of 24 5 per year So be sure to give these hand picked 7 your immediate attention |
C | PRECIOUS Gold pares gains on dollar rally debt growth fears support | Japan intervenes in yen market driving up dollar
Gold could rise to 1 679 technicals
Coming up U S initial jobless claims 1230 GMT
Writes through adds details updates prices
By Rujun Shen
SINGAPORE Aug 4 Reuters Gold pressured on Thursday by
a surging dollar as Japan intervened to rein in its currency
scaled back earlier gains but remained firmly supported by
worries about the widening euro zone debt crisis and slowing
global growth
Gold seems to have wings at the moment as there are lots of
macro and sovereign debt uncertainties said David Thurtell an
analyst at Citigroup
The price of 1 700 seems easy in the current climate and
the market is probably targeting 2 000 now
Spot gold eased from an intra day high of 1 668 76
to 1 662 an ounce by 0625 GMT little changed from the previous
close It hit a record of 1 672 65 in the previous session
U S gold edged down 0 1 percent to 1 664 6 an
ounce off the all time high of 1 675 9 on Wednesday
The yen tumbled as Japan intervened to curb the strength of
its currency sending the dollar surging 3 percent against the
yen and gaining nearly 0 8 percent versus a basket of
currencies
Japan s move came a day after Switzerland unexpectedly cut
interest rates to counter the rally of Swiss franc to which
investors have flocked for security from a spreading euro zone
debt crisis and a shaky global economic outlook
The same sentiment has helped drive gold to nine record
highs in the past three weeks
Technical analysis suggested that gold could rise to 1 679
an ounce in the short term said Reuters market analyst Wang
Tao
The Relative Strength Index or RSI for gold climbed to
near 75 its highest since the end of April during bullion s
previous record setting rally An RSI reading above 70 indicates
the market is overbought
The European Central Bank is expected to halt its rate hike
cycle and probably signal a readiness to buy bonds again as
investors closely watch Spain s bond auction later in the day
Investors are also eyeing the key U S payrolls data for
July due on Friday after a recent spate of disappointing data
including slowing manufacturing sector growth and faltering
consumer spending fueled fears of deteriorating economic
conditions
Holdings in the SPDR Gold Trust the world s largest
gold backed exchange traded fund rose for a second day straight
to 1 286 30 tonnes on Wednesday highest since late December
The amount of gold held by the fund grew nearly 7 percent
since the beginning of July compared to a 6 percent or
72 tonne outflow in the first half of the year
Recent reports of central banks gold purchases reassured
investors that gold s bull run may have a long way to go
Gold is not a punters market as there s real demand but
not just hot money that drives prices higher said a
Singapore based trader
Every dip has found pretty secure demand and I don t know
if we are going to see the long awaited brutal sell down people
seem to have been anticipating
Spot silver rose as high as 42 matching a three
month high set on Wednesday Silver is far from breaking its
record of 49 51 set at the end of April but led the precious
metals complex with a gain of 35 percent so far this year It
lost 0 2 percent to 41 59
Spot gold has risen about 17 percent so far this year
Precious metals prices 0625 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1662 00 1 30 0 08 17 09
Spot Silver 41 59 0 09 0 22 34 77
Spot Platinum 1757 00 19 50 1 10 0 59
Spot Palladium 782 00 8 95 1 13 2 19
TOCOM Gold 4242 00 114 00 2 76 13 76 161108
TOCOM Platinum 4535 00 23 00 0 51 3 43 20155
TOCOM Silver 105 40 4 60 4 56 30 12 2281
TOCOM Palladium 2020 00 50 00 2 42 3 67 840
Euro Dollar 1 4303
Dollar Yen 79 33
TOCOM prices in yen per gram Spot prices in per ounce
COMEX gold and silver contracts show the most active months
Editing by Clarence Fernandez |
C | GLOBAL MARKETS Dollar to drop on S P move flows seen to safe havens | U S dollar seen dropping Swiss franc yen likely
beneficiaries
U S Treasury yield rise may be curbed by equities
sell off
U S downgrade exacerbates growth worries
European Central Bank to decide on Italian bond purchases
By Emelia Sithole Matarise
LONDON Aug 7 Reuters The dollar may fall and Treasury
yields rise on Monday in response to the United States losing
its top tier credit rating from Standard Poor s but any
selling is likely to be tempered by the euro zone s escalating
debt crisis
Equity markets likely reaction was indicated by a drop of
more than six percent on Sunday in Tel Aviv stocks one of the
first to open globally after S P on Friday cut the U S
long term credit rating by a notch to AA plus from AAA
Investors will be all the more likely to withdraw to safe
havens such as the Swiss franc the yen and gold if euro zone
officials cannot stem concern that their debt crisis risks
engulfing Italy the bloc s third largest economy whose
government bond yields have soared to 14 year highs
The real effects of this U S credit rating downgrade
will take time to show through but a weaker U S dollar and
marginally higher yields are likely said Charles Diebel a
strategist at Lloyds Bank
The irony here is that in the context of the price action
last week the equity market response could be quite negative
and thereby we may actually see U S Treasuries supported by
safe haven flows he said in a note
Worries of another U S recession and concern about the euro
zone crisis have already sparked a global stock market slump
that wiped 2 5 trillion off company values in the past week
The fall in global share prices as measured by the MSCI
All country World Index was the biggest weekly decline since
early October 2008 according to Thomson Reuters Datastream
Consumer discretionary shares of firms dependent on external
demand are likely to be singled out for more punishment
On Friday yields on benchmark U S ten year treasury notes
were about half a percentage point away from a
record lows near two percent hit during the throes of the global
financial crisis
IRRATIONAL DEPRESSION
The sharp swings in financial markets have piled pressure on
policymakers
Finance ministers from the Group of Seven most developed
economies were due to discuss on Monday the U S sovereign
rating downgrade and Europe s debt woes Japanese news agency
Kyodo reported on Sunday
Analysts warned the U S downgrade was likely to heighten
investors risk aversion and further bolster the Japanese yen
and the Swiss Franc even though the authorities
of both countries took steps last week to staunch the
export denting strength of their currencies
Be wary tomorrow of irrational depression as markets take
flight said Justin Urquhart Stewart a director at Seven
Investment Management in London We are dealing with the knowns
and not the unknowns but what we have a shortage of at the
moment is political leadership
It was not yet clear whether European policymakers would be
able to come up with measures to allay such concern though all
the signs were that they were keenly aware of the importance of
reassuring markets
Central bank sources said the European Central Bank would
hold a conference call at 1700 GMT to decide whether to buy
Italian government bonds in the secondary market
The ECB last week resumed its purchases of government bonds
in the secondary market after an 18 week hiatus but its decision
to restrict such purchases to Irish and Portuguese bonds led to
sharp declines in Italian and Spanish bond prices
There is no reason why the ECB cannot simply go ahead and
imply that they are going to support the Italians and the
Spanish said Mike Lenhoff chief strategist at Brewin Dolphin
in London It is better that they don t say anything but go in
and show there is another side to the market
Any such ECB buying would offer relief to beaten down
Italian and Spanish bonds
That would in turn offer a respite to European stock
markets Banks exposure to Italian sovereign debt and Italian
banks have forced equity traders to focus on the rising cost of
Italian borrowing and the widening premium that Italian bonds
offer over German government bonds known as Bunds
Without ECB action the reverse would be true
The fact that Italian 10 year BTP risk premia over Bunds
closed near 400 basis points following Thursday s ECB press
conference reaching the level of Greece s risk premium before
the ECB launched the bond buying programme back in May 2010
means that the time to intervene in Italian bond markets is
now said Lena Komileva head of G10 strategy at Brown Brothers
Harriman
Even so the extent of any rally in these bonds will depend
on how the size and persistence of any ECB bond purchases given
investors have been disappointed before by such moves
Moreover any ECB bond buying would not address
international investors other major concern at the moment
the risk of an economic slowdown in the United States
Goldman Sachs strategists said there was a one in three
probability of a U S recession due to the worsening European
crisis the possible failure to extend payroll tax cuts and
elevated levels of joblessness despite a slight dip in the U S
unemployment rate in July
That would bode ill for the benchmark MSCI all country world
stocks index which last week hit its lowest
since September 2010 and has accumulated losses of more than 12
percent since late July
Market sentiment appears acutely vulnerable given the
build up of concern on a sharper U S slowdown and speculation
on the appropriate policy response and lingering fears stemming
from the sovereign debt crisis in Europe Citigroup strategists
said in a note
Additional reporting by Saikaat Chatterjee in Hong Kong
editing by Swaha Pattanaik |
C | GLOBAL MARKETS Dollar to drop on S P flows seen to safe assets | US dollar seen dropping Swiss franc yen likely gainers
Some global investors question S P downgrade
U S downgrade exacerbates growth worries
ECB to decide on Italian bond purchases
Updates prices adds quotes changes byline dateline
previous LONDON
By Gertrude Chavez Dreyfuss
NEW YORK Aug 7 Reuters The U S dollar is likely to
take a further beating against the Swiss franc and Japanese
yen on Monday while global stocks could tumble after the
United States lost its top tier credit rating from Standard
Poor s
Losses against the euro however could be tempered by the
euro zone s escalating debt crisis as officials there discuss
ways to reduce borrowing costs for large euro zone economies
Spain and Italy
The dollar s fall against the safe haven Swiss franc and
yen could be limited by possible intervention by the Bank of
Japan and Swiss National Bank to stem their surging
currencies
Stocks in Tel Aviv one of the first global equity
markets to open since the downgrade dropped over 6 percent on
Sunday in response to S P s action late on Friday to cut the
U S long term credit rating by a notch to AA plus from
AAA
The move by S P drew criticism from some of the world s
largest investors For the S P story click on ID nLDE77500Z
Obviously we re going to get freaked out a little bit and
the dollar will get hit but it s only going to be for a couple
of days said John Taylor chairman and chief executive
officer of FX Concepts the world s largest currency hedge
fund
Over the past month the dollar shed 6 percent against the
Swiss franc and about 4 percent against the yen
This downgrade is not that important and if you ask me
too silly The U S is in a much better position than any I
repeat any European country Taylor added
It was not yet clear whether European policymakers would be
able to come up with measures to allay concerns about their own
region s fiscal crisis though all the signs were that they
were keenly aware of the importance of reassuring markets
Sources said the European Central Bank will hold a
conference call at 1700 GMT to decide whether to buy Italian
government bonds in the secondary market ID nL6E7J704K
One ECB source said that if the ECB council opted to
intervene on Italy the ECB and national central banks would
start buying Italian bonds when markets open on Monday
The ECB last week resumed its purchases of government bonds
in the secondary market after an 18 week hiatus but its
decision to restrict such purchases to Irish and Portuguese
bonds led to sharp declines in Italian and Spanish bond prices
and borrowing costs soared to 14 year highs
There is no reason why the ECB cannot simply go ahead and
imply that they are going to support the Italians and the
Spanish said Mike Lenhoff chief strategist at Brewin Dolphin
in London It is better that they don t say anything but go
in and show there is another side to the market
Any ECB buying would offer relief to beaten down Italian
and Spanish bonds although the extent of any rally in these
bonds will depend on the size and persistence of the bank s
bond purchases
U S RECESSION FEARS
Worries of another U S recession and concern about the
euro zone crisis have sparked a global stock market slump that
wiped 2 5 trillion off companies values in the past week
The fall in global share prices as measured by the MSCI
All Country World Index was the biggest weekly
decline since early October 2008 according to Thomson Reuters
Datastream
Consumer discretionary shares of firms dependent on
external demand are likely to be singled out for more
punishment
Still some investors believed the expected sell off in
stocks on the U S credit downgrade had been largely priced in
and may not last long Some expressed doubts about the S P
decision as they are well aware of questions on the S P s
calculations of the projected U S fiscal deficits
ID nN1E774236
The U S track record over the past 200 years on its
ability and willingness to fully service its debt is impeccable
and the debt statistics should be interpreted not in isolation
but in conjunction with the flawless track record of the U S
said Stephen Jen managing director of SLJ Macro Partners in
London a global macro hedge fund
This will have no lasting effects on financial asset
prices he added
U S Treasury debt yields are also expected to rise on
Monday Yields on benchmark U S 10 year Treasury notes
rebounded to 2 56 percent on Friday but were not very far from
a record low of near 2 percent hit during the throes of the
2007 09 global financial crisis
The sharp swings in financial markets have piled pressure
on policymakers
Finance ministers from the Group of Seven most developed
economies are on Monday to discuss the U S sovereign rating
downgrade and Europe s debt woes Japanese news agency Kyodo
reported on Sunday ID nL3E7J700A
Be wary Monday of irrational depression as markets take
flight said Justin Urquhart Stewart a director at Seven
Investment Management in London We are dealing with the
knowns and not the unknowns but what we have a shortage of at
the moment is political leadership
Goldman Sachs strategists said there was a one in three
probability of a U S recession due to the worsening European
crisis the possible failure to extend payroll tax cuts and
elevated levels of joblessness despite a slight dip in the
U S unemployment rate in July
That would bode ill for the benchmark MSCI all country
index which last week hit its lowest since September 2010 and
has accumulated losses of more than 12 percent since late
July
Market sentiment appears acutely vulnerable given the
build up of concern on a sharper U S slowdown and speculation
on the appropriate policy response and lingering fears stemming
from the sovereign debt crisis in Europe Citigroup
strategists said in a note |
C | REFILE GLOBAL MARKETS Euro rises ECB raises debt buying hopes | Refiles with updated headline
Euro rises on hopes ECB will buy Italian Spanish bonds
US dollar seen dropping Swiss franc yen likely gainers
Some global investors question S P downgrade
U S downgrade exacerbates growth worries
Adds ECB planning on buying Italian and Spanish bonds
By Gertrude Chavez Dreyfuss
NEW YORK Aug 7 Reuters The euro got a boost on Sunday
after a euro zone monetary source said the European Central
Bank will intervene decisively on markets to protect Italy and
Spain from the debt crisis indicating it would buy government
bonds of the euro zone s third and fourth biggest economies
A statement from the ECB issued after the central bank
held a conference call said it would actively implement its
bond buying programs while the euro zone monetary source told
Reuters that the ECB would intervene significantly in the
crisis ID nL6E7J704K
The U S dollar took a further beating against the
safe haven Swiss franc and Japanese yen though markets were
aware of the possibility of intervention by the Bank of Japan
and Swiss National Bank to stem their surging currencies
The dollar fell against the Swiss franc to 0 7570 franc
from 0 7671 on Friday It also lost ground against the yen to
78 01 yen from 78 38 on Friday
Global stocks could tumble after the United States lost its
top tier credit rating from Standard Poor s
Stocks in Tel Aviv one of the first global equity
markets to open since the U S downgrade dropped 7 percent on
Sunday in response to S P s action late on Friday to cut the
U S long term credit rating by a notch to AA plus from
AAA
The move by S P drew criticism from some of the world s
largest investors For the S P story click on ID nLDE77500Z
Obviously we re going to get freaked out a little bit and
the dollar will get hit but it s only going to be for a couple
of days said John Taylor chairman and chief executive
officer of FX Concepts the world s largest currency hedge
fund
Over the past month the dollar shed 6 percent against the
Swiss franc and about 4 percent against the yen
This downgrade is not that important and if you ask me
too silly The U S is in a much better position than any I
repeat any European country Taylor added
While the downgrade was seen as compounding uncertainty in
Europe it was not yet clear whether European policymakers
would be able to come up with measures to allay concerns about
their own region s crisis However all the signs were that
they were keenly aware of the importance of reassuring
markets
Germany and France on Sunday reiterated their commitment to
implementing the decisions of last month s emergency EU summit
ID nLDE77607W ID nL6E7J704K
One ECB source said that if the ECB council opted to
intervene on Italy the ECB and national central banks would
start buying Italian bonds when markets open on Monday
The ECB last week resumed its purchases of government bonds
in the secondary market after an 18 week hiatus but its
decision to restrict such purchases to Irish and Portuguese
bonds led to sharp declines in Italian and Spanish bond prices
and borrowing costs soared to 14 year highs
Any ECB buying would offer relief to beaten down Italian
and Spanish bonds although the extent of any rally in these
bonds will depend on the size and persistence of the bank s
bond purchases
U S RECESSION FEARS
Worries of another U S recession and concern about the
euro zone crisis have sparked a global stock market slump that
wiped 2 5 trillion off companies values in the past week
The fall in global share prices as measured by the MSCI
All Country World Index was the biggest weekly
decline since early October 2008 according to Thomson Reuters
Datastream
Consumer discretionary shares of firms dependent on
external demand are likely to be singled out for more
punishment
Still some investors believed the expected sell off in
stocks on the U S credit downgrade had been largely priced in
and may not last long Some expressed doubts about the S P
decision as they are well aware of questions on the S P s
calculations of the projected U S fiscal deficits
ID nN1E774236
The U S track record over the past 200 years on its
ability and willingness to fully service its debt is impeccable
and the debt statistics should be interpreted not in isolation
but in conjunction with the flawless track record of the U S
said Stephen Jen managing director of SLJ Macro Partners in
London a global macro hedge fund
This will have no lasting effects on financial asset
prices he added
U S Treasury debt yields are also expected to rise on
Monday Yields on benchmark U S 10 year Treasury notes
rebounded to 2 56 percent on Friday but were not very far from
a record low of near 2 percent hit during the throes of the
2007 09 global financial crisis
The sharp swings in financial markets have piled pressure
on policymakers
Finance ministers from the Group of Seven most developed
economies are set to discuss the U S sovereign rating
downgrade and Europe s debt woes on Monday Japanese news
agency Kyodo reported earlier on Sunday ID nL3E7J700A
Be wary Monday of irrational depression as markets take
flight said Justin Urquhart Stewart a director at Seven
Investment Management in London We are dealing with the
knowns and not the unknowns but what we have a shortage of at
the moment is political leadership
Goldman Sachs strategists said there was a one in three
probability of a U S recession due to the worsening European
crisis the possible failure to extend payroll tax cuts and
elevated levels of joblessness despite a slight dip in the
U S unemployment rate in July
That would bode ill for the benchmark MSCI all country
index which last week hit its lowest since September 2010 and
has accumulated losses of more than 12 percent since late
July
Market sentiment appears acutely vulnerable given the
build up of concern on a sharper U S slowdown and speculation
on the appropriate policy response and lingering fears stemming
from the sovereign debt crisis in Europe Citigroup
strategists said in a note |
C | US STOCKS Wall Street dives after S P downgrade | S P 500 could test Fri intraday low of 1 168 09 analysts
Gold tops 1 700 on safety bid
Indexes down S P 2 3 pct Dow 1 9 pct Nasdaq 2 3 pct
For up to the minute market news see STXNEWS US
Updates to open
By Edward Krudy
NEW YORK Aug 8 Reuters U S stocks tumbled on Monday
tracking a sharp drop in global equity markets after rating
agency Standard Poor s cut the top tier AAA credit rating of
the United States rattling already jittery investors
The technology heavy Nasdaq fell more than 3 percent at the
open
Market sectors most sensitive to the economy such as the
banking and natural resource sectors took the brunt of
selling United States Steel Corp fell 6 2 percent to
31 18 while Citigroup Inc dropped 5 percent to 31 83
S P cut the U S long term credit rating by a notch to
AA plus late Friday on concerns about debt in the world s
largest economy The downgrade could eventually raise borrowing
costs for the U S government companies as well as consumers
ID nLDE77500Z
The move came after a wild week for Wall Street its
worst in more than two years as lingering concerns about
sluggish economic growth and fears of a financial meltdown in
the euro zone hit sentiment
Even the European Central Bank s dramatic intervention in
bond markets which pushed down yields on Spanish and Italian
bonds was not enough to stem selling ID nLDE7770NM
What s concerning us and holding us back from buying what
we think is value is that the ferocity of the momentum of the
downside is still quite strong said Paul Zemsky head of
asset allocation at ING in New York
The Dow Jones industrial average dropped 215 55
points or 1 88 percent to 11 229 06 The Standard Poor s
500 Index fell 27 71 points or 2 31 percent to
1 171 67 The Nasdaq Composite Index lost 58 30 points
or 2 30 percent to 2 474 11
The New York Stock Exchange invoked a special regulation
known as Rule 48 to smooth trading at the market open
MSCI s all country world stock index
dropped 2 5 percent and hit its lowest since September 2010
Safe haven assets were in demand Gold vaulted above
1 700 an ounce for the first time on Monday and hit a record
1 715 01
Last week s steep drop in equities wiped about 2 5
trillion off global market valuations The S P 500 has fallen
over 12 percent since the end of April with much of that
selling coming on heavy volume last week Prior to Monday the
index had retreated 11 percent in the last 11 sessions
Analysts said the S P 500 index could test Friday s
intraday low of 1 168 09 Some traders are looking for a
pullback to the 32 8 percent retracement of the rally from the
index s bear market low on March 2009 That level is around
1 100
ING s Zemsky said he was looking for support at 1 130 the
level of a stock market breakout in September 2010 but warned
that fast moving markets can quickly fall through support
points
Editing by Jeffrey Benkoe editing by Jeffrey Benkoe |
C | Gold To Rise 8 To 15 A Year | Tuesday s AM fix was USD 1 734 00 EUR 1 354 05 and GBP 1 089 06 per ounce Monday s AM fix was USD 1 723 25 EUR 1 349 66 and GBP 1 083 67 per ounce Gold climbed 20 20 or 1 18 in New York on Monday and closed at 1 732 10 Silver surged to a high of 33 205 and finished with a gain of 2 7 while oil surged 2 6 Gold was flat yesterday and appeared to be consolidating on Monday s gains Conflict in the Middle East and Moody s downgrade of France s AAA rating will support gold Indeed the Moody s downgrade of France shows how the global debt crisis is spreading to Europe s core with obvious ramifications for the euro Oil prices surged on Monday as violence intensified in the Israel Gaza conflict sparking fresh concern about supplies from the crude oil rich Middle East should the conflict escalate and engulf other Middle Eastern nations such as Syria and Iran New York s main contract West Texas Intermediate WTI for delivery in January soared 2 6 or 2 36 from Friday to settle at 89 28 a barrel This is strengthening safe haven demand for gold bullion The Greek parliament approved laws Monday to enforce budget limits and guarantee privatization proceeds will be used to repay debts before the eurozone Finance Ministers met yesterday about Greece in Brussels Ultra loose monetary policies continue to support gold Australia s Central Bank said it may further cut interest rates but will leave monetary policy unchanged in November US Federal Reserve Chairman Ben Bernanke is speaking at the Economic Club of NY on The Economic Recovery and Economic Policy at 1715 GMT Citigroup s Global Head of Commodities Research Edward L Morse spoke to reporters Tuesday and said that gold can continue to rise 8 15 per year based on central bank purchases and despite the end of the commodity super cycle It is now clear that the commodity super cycle is over Morse was reported as saying by Bloomberg No longer will a pure long only strategy bring the returns expected in 2002 to 2008 Nor will conditions approximating those of the last decade return any time soon The super cycle of commodity price gains has finished as China s economy moves to slower growth and supplies increase Prices won t climb sharply higher even though quantitative easing from global central banks lift growth and bullion demand rebounds by the end of 2013 Returns will be more differentiated among raw materials depending on supply demand balances wrote analysts at Citigroup Inc The Standard Poor s GSCI Spot Index of 24 raw materials which has increased nearly four times since2001 is up just shy of 1 this year evidenced by sluggish growth in global economies including China the world s biggest consumer of cotton soybeans and copper Citigroup s Morse was bearish on the outlook for most commodities except for the precious metals of gold silver platinum and palladium |
C | Citigroup s Forming A Corrective Wave | Peaks And Troughs ProgressionThe common equity share of price of Citigroup C is forming an intermediate corrective wave The market for shares is forming lower minor highs and lows A minor low was formed last week Moving Average Currently the price is above the flattening 50 day simple moving average Further the market is above the rising 200 day simple moving average Also the market is below the declining 20 day simple moving average the short term trend is towards lower prices and the signal is reliable IndicatorsThe 14 day ADX is declining after peaking near 40 which suggests the market is consolidating The 12 day rate of change is flat and below equilibrium the market is lower than it was 12 days ago The 14 day slow stochastic is rising from the oversold zone The 14 day RSI is near equilibrium the RSI is suggesting the market is bearish The market is below the parabolic SAR suggesting the minor trend is towards lower prices Conclusion Neutral Traders shouldn t be short common equity shares of Citigroup the firm is a laggard during this decline Investors should be neutral Long term investors should have reduced long equity exposure DisclaimerThis article is not meant to establish or continue an investment advisory relationship Before investing readers should consult their financial advisor Christopher Grosvenor does not know your financial situation and ability to bear risk and thus his opinions may not be suitable for all investors |
C | A Look At The Greek Aid Deal | The euro strengthened Tuesday morning trading near 1 30 The price increase was attributed to a final decision between European finance ministers and the International Monetary Fund about managing Greece s debt Target Date Remains The SameAfter three long meetings the EU finance ministers and IMF Director Christine Lagarde emerged from their final talk in Brussels having reached an agreement on how to move forward and tackle Greece s debt problem The main point of contention was whether or not to give the country two additional years to lower its debt to 120 of GDP In the end the two parties agreed to keep the target date the same 2020 and raise the debt ratio goal to 124 percent of GDP In order for this new target to be reached the EU finance ministers had to commit themselves to assisting the country in lowering its debt When Greece reaches a primary budget surplus forecast in 2016 Greek loan write offs from the EU lenders may be necessary Although this notion has been fiercely opposed by Germany and some other northern European countries Reuters reported that German Finance Minister Wolfgang Schaeuble said Germany is willing to consider further measures to reduce Greek debt once the country has fulfilled all of its conditions and is nearer to a primary surplus Delivery Due Next MonthThe aid money is set to be delivered in stages with the first part due on December 13 just in time for Greece to pay wages pensions and suppliers as well as recapitalize its banks One third of the money paid by the IMF is set to be delivered after Greek debt is bought back in the next few weeks While the release of these funds and a new plan in place to help Greece get out of debt has strengthened the Euro some worry that the gains will be short lived Greece already struggling with politically instability and social unrest barely weathered its past round of austerity cuts which were promised to be the last More cuts accompanied by protests are sure to follow as the country attempts to meet the conditions of its bailout Also adding to the uncertainty an opinion poll in Greece on Monday showed the SYRIZA anti bailout party had a four percent lead over the current conservative government c 2012 Benzinga com Benzinga does not provide investment advice All rights reserved |
C | EUR USD Settles Lower As Skepticism Remains On Greek Debt Agreement | EUR USDThe pair settled the session lower as market participants remained sceptical that Greece will be able to implement the agreed debt buyback in an orderly manner Also concerns over the looming fiscal cliff boosted demand for safe haven assets This was after Senate Majority Leader Reid said that little progress has been made recently in fiscal cliff talks On the subject of Greece analysts at Citigroup said they view the Troika s assumptions on GDP growth for Greece as far too optimistic and do not expect Greece to meet the new debt to GDP target of 124 by 2020 In terms of technical levels supports are seen at the 10DMA line at 1 2848 and then at the 21DMA line at 1 2829 On the other hand resistance levels are seen at the 21DMA upper Bollinger line at 1 3008 and then at 1 3021 GBP USDThe pair trended in tandem with EUR USD throughout the session as market participants were given little to cheer about after US Senate Majority Leader Reid said that little progress has been made recently in fiscal cliff talks while little information about the proposed debt buyback has been revealed by Greece In terms of technical levels supports are seen at the 10DMA line at 1 5956 and then at the 200DMA line at 1 5860 On the other hand resistance levels are seen at the 55DMA line at 1 6061 and then at the 21DMA upper Bollinger level at 1 6126 USD JPYThe pair settled lower as risk averse sentiment dominated the session after US Senate Majority Leader Reid said that little progress has been made recently in fiscal cliff talks Also lack of clarity on Greek debt buyback supported flows into safe haven assets In terms of technical levels supports are seen at 81 65 45 and then at 81 13 On the other hand resistance levels are seen at 82 22 31 and then at 82 63 |
BMY | The Extreme Risks Of Trading Your Own Retirement Assets November 12 2019 | You have a significant retirement portfolio You re an experienced investor You ve done pretty well at picking stocks You probably even own a few of Zacks Top Retirement stock picks like
Grupo Aeroportuario del Centro Norte OMAB Phillips 66 NYSE PSX Partners LP PSXP and Bristol Myers Squibb BMY
If that sounds like you should you actively trade your own retirement assets
Perhaps if you re the one in a million investor who can expertly manage risk and maintain unflinching emotional control in volatile markets But for most there may be better strategies to achieve long term retirement investing goals
That s because the risk reward scenario and investing approach is completely different for long term wealth building and active stock trading
Diversification vs Stock Picking
While stock picking can potentially result in outsized returns its outsized concentrated risk can pose significant hazards for retirement investors
In fact a study done by Hendrik Bessembinder revealed that only 4 of equities produced all of the stock market s gains over the last 90 years All other stocks broke even with the increases of 38 canceled out by the losses of the bottom 58
For even the most talented stock pickers the odds for long term success are slim
Is Investing Success All In Your Mind
Most people think they can make rational investment decisions but research indicates the opposite is often true Investors followed in a DALBAR study performed significantly worse than the S P 500 For the 30 years between 1986 to 2015 the average investor earned just 3 66 whereas the S P 500 produced a 10 35 return
Importantly this period included the 1987 crash and big bear markets in 2000 and 2008 but also the bull market of the 1990s
This study suggests that one key reason for investor underperformance is trying to time volatile markets and that irrational behavior biases tend to compound investor mistakes
Curiously even experienced traders tend to underperform since they can t resist the emotional urge to make impulsive investment choices They might be overly self assured and miscalculate risk get attached to a price target or perceive a pattern that does not exist This behavioral fallacy over the long term can be disastrous with potential underperformance of a huge number of dollars disrupting your retirement
What It All Means for Retirement Investors
Your retirement portfolio ought to be dealt with a technique of performance over decades not days weeks or quarters Most self coordinated investors will in general miss the mark with regards to long term outcomes
Does that mean you should give up trading Not necessarily One solution is to take 10 of your investable assets and trade to generate alpha and seek outsized returns
But the point we re making here is that the money you have set aside for your retirement should be invested using a more conservative long term approach designed to produce reliable returns so you can steadily build assets and achieve your retirement goals
Do You Know the Top 9 Retirement Investing Mistakes
Whether you re planning to retire early or not don t let investing mistakes derail your plans
If you have 500 000 or more to invest and want to learn more click the link to download our free report 9 Retirement Mistakes that will Ruin Your Retirement This report will help you steer clear of the most common mistakes like trying to time the market lack of diversification in your portfolio and many more Get Your FREE Guide Now |
C | GLOBAL MARKETS US debt standoff makes investors sell stocks buy gold | Nikkei down 0 8 pct US 10 year yield edges up to 3 pct
Gold up 1 pct Swiss franc strengthens
US lawmakers remain divided on US debt ceiling
Is Asia a safe haven from global debt fears
Adds quote updates prices
By Kevin Plumberg
SINGAPORE July 25 Reuters Stocks fell while the Swiss
franc rose and gold hit a record high on Monday as hopes for a
political deal to avert a U S default began to fade though
investors were mostly seeking to protect their portfolios with
no signs of market panic
Indeed though the benchmark 10 year U S Treasury yield
rose four basis points to 3 percent it was still
down more than 30 basis points since the year began
Equity markets in Asia were down between 0 8 percent to 2 3
percent and U S stock futures fell 1 1 percent
Investors have been whipsawed in the past few months by hope
and disappointment over policymakers ability to halt sovereign
debt crises in the euro zone and the United States
After European leaders scraped together a second bailout for
Greece last week haggling in Washington has taken centre stage
after U S debt talks between President Barack Obama and
congressional leaders broke down over the weekend making a U S
debt default a previously unthinkable event a possibility
Investors said they still mostly viewed the headlines coming
out of Washington as political theatre and expected an
eleventh hour solution before an Aug 2 deadline when the U S
Treasury said it would not be able to borrow any more funds
They have continued all the while though to cut their exposure
to risky assets
Despite the ever frustrating horse wrangling between the
Democrats and Republicans which could result in a downgrade of
the U S government debt ranking I still believe that some kind
of temporary deal will be struck in the last minute said Khiem
Do head of Asian Multi Asset with Baring Asset Management in
Hong Kong
Full coverage of U S budget and debt
Possible outcomes for U S debt talks
How US debt talks became a crisis
Insider Debt impasse weighs on U S image
US YIELDS RISE BUT NO BUYERS STRIKE
Japan s Nikkei share average closed down 0 8 percent
led by shares of clothing chain company Fast Retailing
which fell 1 5 percent after hitting a 13 month high
last Friday
The MSCI index of Asia Pacific stocks outside Japan was down
1 2 percent with industrials and energy related
stocks underperforming the most
Treasuries slid with the 10 year future down 6 32 to
124 4 5 32 though they remained not too far from a
seven month high of 125 28 32 reached in June
In the cash market selling was heavier in late dated
maturities The 30 year yield climbed five basis points from
late Friday in New York to 4 31 percent
Senior traders at Wall Street dealers in Asia said that
regional investors including central banks were more worried
about the debt crisis raging in Europe than with the political
paralysis gripping Washington
Do I think interest rates will be resoundingly higher due
to a weaker credit No If that were the case Japan would be
higher than Botswana said Bernie Ward co head of global
central bank sales at RBS in Tokyo
The point is it doesn t mean a lot at the end of the day
At some point the market will punish but it s not now We re
not seeing a buyers strike yet
The Swiss franc was one of the biggest gainers from late
Friday in New York owing to its safe haven status
The dollar was down around 0 8 percent from Friday against
the franc at 0 8122 and was also down slightly against
the yen at 78 40 yen
ASIAN OPPORTUNITY
Asian assets were seen by many fund managers as a
beneficiary of the increasingly tense investment environment
because of the region s relatively stronger sovereign balance
sheets and better growth prospects
Overall we remain positive on the solid economic and
investment outlook for Asia which may actually be considered as
the safe haven while the debt concerns and consumer
de leveraging in Japan Europe and the U S continue said
Barings Do
Mark Mobius executive chairman of Templeton Asset
Management s emerging markets group believes investors will
accelerate diversifying their assets out of the U S dollar into
Asian currencies if the U S debt talks fail
The first reaction probably would be that there will be a
move into Asian currencies and Asian bonds People will see that
as a safer alternative You are already beginning to see that
trend Some of the emerging countries have a lower cost on
credit default swaps from the developed countries said Mobius
who oversees some 50 billion in assets
However in times of heightened market volatility investors
usually rush to liquid assets of which emerging Asia has
relatively few compared with developed markets
Even if Congress proves able to broker a deal with Obama it
is not clear the credit rating agencies would hold off from
downgrading the top U S rating and what the market impact
would be of such a move
Strategists at Bank of America Merrill Lynch expect the U S
S P 500 index to drop about 100 points from where it is now if
the United States loses its top debt rating though they don t
expect the 10 year Treasury yield to rise above 3 60 percent in
2011
Traders were watching U S S P 500 stock futures closely for
indications on the broader market s willingness to stick with
risky assets as the U S debt deadline looms
Correlations between G10 currencies and the S P 500 index
are strongest with the Canadian dollar Australian dollar and
Swedish crown suggesting those currencies could be in the
firing line if fear causes dealers to liquidate positions in a
hurry Robert Rennie chief currency strategist with Westpac
Bank in Sydney said
The Korean won one of the more liquid emerging Asian
currencies has a relatively low correlation with the S P in the
past year
In commodities trading gold rose to an all time high
of 1 622 49 an ounce then eased to 1 613 60 still up 0 9
percent for the day Silver was at 40 52 close to last
Tuesday s two month high of 40 84
U S crude oil for September delivery in New York
fell 83 cents to 99 04 a barrel while Brent oil futures
were down 71 cents at 117 96
Markets still believe that there is going to be a last
minute deal on this even though we might be pushing really close
to the line and that is the reason why Asian trading has been
largely sanguine said Kenneth Akintewe a fund manager at
Aberdeen Asset Management who helps manage 6 8 billion in Asian
fixed income securities
Additional reporting by Saeed Azhar and Saikat Chatterjee and
Eric Burroughs in HONG KONG Editing by Richard Borsuk |
C | European stocks retreat on U S default fears DAX down 0 2 | Investing com European stock markets were broadly lower on Monday as shares in the financial sector came under selling pressure amid fears over a possible U S sovereign debt default and after Greece s credit rating was downgraded During European morning trade the EURO STOXX 50 slumped 0 75 France s CAC 40 shed 0 55 while Germany s DAX 30 dipped 0 2 With time running out talks between Democrats and Republicans from the U S Congress broke down over the weekend prompting White House Chief of Staff Bill Daley to warn that there would be a few stressful days ahead for financial markets as the deadline to raise the USD14 3 trillion debt ceiling was only nine days away Meanwhile ratings agency Moody s downgraded Greece by three notches to Ca from Caa1 earlier in the day saying the country still faced serious medium term solvency challenges despite the fresh bailout package Banking shares performed poorly following the news with French lenders BNP Paribas and Societe Generale dropping 3 7 and 3 4 respectively while shares in Germany s Commerzbank sank 2 9 Peripheral lenders were also lower as shares in Unicredit and Banco Santander each lost 3 while Italy s second largest bank Intesa Sanpaolo tumbled 4 6 after JP Morgan lowered its price target on the stock by nearly 30 Shares in French advertising group JCDecaux dropped 3 4 after Citigroup downgraded the stock to hold from buy saying revenue momentum at the group could stall over the near term In London the FTSE 100 shed 0 35 as U K lenders tracked their European counterparts lower Barclays saw shares drop 2 9 Royal Bank of Scotland shares retreated 2 2 while shares in Lloyds Banking Group sank 2 7 On the upside precious metal producer Fresnillo saw shares climb 3 6 after gold prices rallied to a new all time high while silver prices hovered close to a three month high Meanwhile the outlook for U S equity markets was downbeat ahead of earnings reports from semiconductor manufacturer Texas Instruments and video streaming website Netflix The Dow Jones Industrial Average futures pointed to a loss of 0 85 the S P 500 futures dropped 0 8 while the Nasdaq 100 futures retreated 0 7 Later in the day the U S was to release a report on manufacturing activity in the Dallas region |
C | European shares hit by growth worries banks fall | FTSEurofirst 300 closes 1 3 pct lower
US manufacturing data weak debt vote awaited
Intesa SanPaolo falls 7 9 pct Citigroup cuts target
HSBC up after results beat forecasts
By Brian Gorman
LONDON Aug 1 Reuters European stocks fell sharply on
Monday as weak U S manufacturing data added to worries about a
slow recovery for the world s biggest economy more than
offsetting optimism the United States would avert a disastrous
debt default
The FTSEurofirst 300 index of top European shares
fell 1 3 percent to 1 067 97 points the lowest close in two
weeks and only just above its low for 2011 1 065 72 Volumes
were high at 125 percent of the 90 day average for the index
Growth looks as though it s waning in a lot of developed
economies and the U S and euro zone debt situation can only
be solved with growth said Michael McNaught Davis head of
international equities at Scottish Widows which has 145 billion
pounds under management
I m more concerned about the growth and earnings than
what s been going on with U S debt which is semantics and
accounting as much as anything
Banking shares were a major drag on the index with Italy s
heavyweight Intesa SanPaolo among the worst off down
7 9 percent
Citigroup cut its target price for all Italian banks
including Intesa which it lowered to 1 9 euros from 2 16 The
increase in the Italian sovereign debt yield has driven a strong
increase in funding costs Citi said
The STOXX Europe 600 Banking Index fell 2 percent
and is down 13 6 percent in 2011 on worries about sovereign
debt levels The fall on Monday was despite Europe s biggest
bank HSBC gaining 2 2 percent after its results beat
forecast
The Thomson Reuters Peripheral Eurozone Banking Index
fell 6 2 percent
The U S Institute for Supply Management manufacturing
report a gauge of factory activity fell to 50 9 in July its
lowest since July 2009 and barely above the 50 mark dividing
growth and contraction
The data followed Friday s below forecast U S GDP data
In Europe the euro zone manufacturing PMI which gauges
thousands of businesses fell to 50 4 in July from 52 0 in June
its worst showing since September 2009
Across Europe Britain s FTSE 100 fell 0 7 percent
while Germany s DAX and France s CAC40 fell 2 9
and 2 3 percent respectively
The Thomson Reuters Peripheral Eurozone Countries Index
was down 4 5 percent with Italy s benchmark
down 3 9 percent
EARNINGS SEASON
The earnings season in Europe has been pretty
disappointing McNaught Davis said Analysts have clearly
underestimated the impact of higher raw material prices and how
difficult it would be for companies to pass them on
Air France KLM among those reporting last week
fell 4 5 percent to a new 12 month low
Investors are bracing for a flurry of European corporate
earnings due this week from big names like Societe Generale
and Deutsche Telekom ahead of Friday s key
U S monthly non farm payrolls
Europe s second quarter results season has so far revealed
an equal split between earnings beats and misses falling short
of the near 80 percent earnings beats reported by U S
companies data from Thomson Reuters StarMine shows
Of the 137 European companies that have reported second
quarter earnings 51 percent of them have come in above or in
line with analysts forecasts The remaining 49 percent came in
below
U S congressional leaders rushed to line up Republican and
Democratic votes on Monday for a White House backed deal to
raise the U S borrowing limit and avert an unprecedented debt
default
The Euro STOXX 50 index of euro zone blue chips
fell 2 9 percent and its 14 day Relative Strength Index fell to
33 6 with 30 and below considered oversold
Editing by David Cowell
For rolling updates on what is moving European shares
please click on
For pan Europeanmarket data and news click on codes in
brackets
European Equities speed guide
FTSEurofirst 300 index
DJ STOXX index
Top 10 STOXX sectors
Top 10 EUROSTOXX sectors
Top 10 Eurofirst 300 sectors
Top 25 European pct gainers
Top 25 European pct losers
Main stock markets
Dow Jones Wall Street report
Nikkei 225 Tokyo report
FTSE 100 London report
Xetra DAX CAC 40
World Indices 0 INDEX
Reuters survey of world bourse outlook
Western European IPO diary
European Asset Allocation
Reuters News at a Glance Equities
Main currency report |
C | Stocks Slammed As Draghi Comments On Economy | U S stock futures initially traded higher after it was officially revealed that President Obama had won his bid to be reelected but quickly reversed direction and headed lower after European Central Bank Chair Mario Draghi made comments on the state of the German economy Draghi noted that the ongoing European crisis was starting to affect Germany Disappointing German DataRecent data out of Germany supports Draghi s prognosis as the Service PMI Industrial Orders and Factory Orders data all missed expectations Industrial Production released on Wednesday came in at 1 8 lower than the 0 5 that was anticipated German Service PMI and Industrial Orders released on Tuesday came in at 48 4 and 3 3 respectively Expectations were for 49 3 and 0 5 The ECB will meet tomorrow to decide the interest rate for the Euro zone The central bank may also take steps to further explain or expand its OMT program a program designed to allow the ECB to purchase the short term bonds of indebted nations Economists expect the ECB to do little leaving rates at 0 75 and keep the terms of the OMT program intact However given recent German weakness traders might be in for a surprise tomorrow Market s Free FallShortly after the New York open the Dow quickly fell nearly 180 points and by noon had fallen nearly 2 5 to 12876 60 Financial stocks were hard hit with the Financial Select Sector SPDR down nearly 2 Obama s election might have contributed to the selloff as traders anticipate further financial regulation However U S financials remain largely exposed to the Euro zone and further weakness in Europe could have a detrimental effect on American banks c 2012 Benzinga com Benzinga does not provide investment advice All rights reserved |
C | Dollar And Yen Surge On Higher Demand For Havens | Due to the eurozone s economic troubles and the coming US fiscal cliff the forex market has been very volatile lately Currently there is high demand for the safe haven currencies Riskier currencies such as the AUD and the EUR have been falling as a result There is much uncertainty today as Greece passed its budget and there continues to be much cause for concern Since forex traders have been showing a lack of risk appetite the greenback and the yen were the strongest currencies by the close of Monday s trading session The USD JPY tumbled 0 29 to 79 26 yen Economists expect that possible further losses for the currency pair will be incurred Great Britain released positive economic data leading to a jump for the GBP USD forex binary option which had been very bearish recently The EUR USD currency pair dropped by 0 21 to 1 2683 Binary options traders should follow these forex pairs closely today so that your chances of trading successfully will increase Yesterday saw high gains for stocks for a large period of the trading session However towards the end of the day they began to plummet The bearishness of the global economy as well as the looming US fiscal cliff has resulted in weak US stocks Citigroup Inc C climbed 1 36 to 36 42 Facebook Inc FB rose 4 48 to 20 07 Apple dropped 0 77 to 542 83 Pfizer fell 0 25 to 24 11 Economists explain that in order for stocks to make a comeback there will need to be some sort of a change regarding the fiscal cliff and an improvement in the global economy There have not been many factors backing the leading US indices lately Because of this Indices were not very mobile yesterday Investors seem to be concentrating on the US s incapability of cutting its debt as well as on the worsening situation of the eurozone economic crisis It is likely that the top indices will tumble even further during today s trading session Nasdaq 100 dropped 0 05 to 2 596 57 Dow Jones did not change much yesterday closing at 12 815 93 The S P jumped 0 18 points to 1 380 03 Most commodities are bearish today The gold binary option did not perform well yesterday and is continuing to dip today This morning it slid 5 35 to 1 725 55 The forecast that stockpiles rose last week and the dollar s bullishness have led crude to fall 48 cents today to the 85 59 level It is expected that the top commodities will accumulate further losses in the next few hours Binary options traders should focus as the day moves on Put options for the gold binary option will possibly bring high returns in the coming hours Today s Main Events Key global data on tap 10 00 GMT EUR ZEW Economic Sentiment It s a leading indicator of economic health investors and analysts are highly informed by virtue of their job 19 00 GMT USD Federal Budget Balance Difference in value between the federal government s income and spending during the previous month 21 45 GMT NZD Core Retail Sales Change in the total value of inflation adjusted sales at the retail level excluding automobiles and gas stations 23 30 GMT AUD Westpac Consumer Sentiment Survey which asks respondents to rate the relative level of past and future economic conditions |
C | Rising Gold Reserves In Emerging Economies Indicate Power Shift | Massive rises in Gold Reserves in emerging economies in a time when debts are rising even faster in the western developed nations indicate a power shift in the near future sooner or later Central Banks in the Middle East are building up their Gold Reserves while reducing their US Dollar Forex holding Gold reserves of GCC states are less than 5 Dubai International Financial Center Authority economists released a report calling for local countries to build gold reserves according to The National Despite a high interest in gold GCC states maintain less than 5 of their total reserves in gold Compared to the ECB which holds 25 of Gold Reserves that leaves a lot of room for growth stated Business Insider GCC states should boost their foreign reserve holdings of gold to help shield their billions of dollars of assets from turbulence in global currency markets say economists at the Dubai International Financial Centre Authority DIFCA Diversifying more of their reserves from US dollars to the yellow metal would help to offer central banks in the region higher investment returns said Dr Nasser Saidi the chief economist of DIFCA and Dr Fabio Scacciavillani the director of macroeconomics and statistics at the authority When you have a great deal of economic uncertainty going into paper assets whatever they may be stocks bonds other types of equity is not attractive said Dr Saidi That makes gold more attractive Declines in the dollar during recent months have dented the value of GCC oil revenues which are predominantly weighted in the greenback According to a report in People s Daily The latest rankings of Gold reserves show that as of mid December the United States remains the top country and the Chinese mainland is ranked sixth with 1 054 tons of reserves the World Gold Council announced recently Russia climbed to eighth place because its gold reserves increased by 167 5 tons since December 2009 The top ten in 2010 remains the same compared to the rankings of the same period of last year And Saudi Arabia squeezed to the top 20 Developing countries and regions including Saudi Arabia and South Africa have become the main force driving the gold reserve increase The International Monetary Fund IMF and the European central bank are the major gold sellers and the IMF s gold reserves decreased by 158 6 tons It should be understood that actual purchases of physical gold are not the only factor in explaining the movement of gold prices The gold market is marked by organized speculation by large scale financial institutions The gold market is characterized by numerous paper instruments gold index funds gold certificates OTC gold derivatives including options swaps and forwards which play a strong role particularly in short term movement of gold prices The recent increase and subsequent decline of gold prices are the result of manipulation by powerful financial actors China increasing Gold Reserves quietly to become a Gold superpower While Western central banks have frittered away their gold China is quietly building up its reserves There is evidence that central banks in several regions of the World are building up their Gold Reserves What are published are the official purchases A large part of these Central Bank purchases of Gold Bullion are not disclosed They are undertaken through third party contracting companies with utmost discretion US dollar holdings and US dollar denominated debt instruments are in effect being traded in for gold which in turn puts pressure on the US dollar In turn both China and Russia have boosted domestic production of gold a large share of which is being purchased by their central banks It has long been assumed that China is surreptitiously building up its gold reserves through buying local production Russia is another major gold miner where the Central bank has been purchasing gold from another state entity Gokhran which is the marketing arm and central repository for the country s mined gold production Now it has been reported by Bloomberg that the Venezuelan Central Bank director Jose Khan has said that country will boost its gold reserves through purchasing more than half the gold produced from its rapidly growing domestic gold mining industry In Russia for example Gokhran sold some 30 tonnes of gold to the Central Bank in an internal accounting exercise late last year In part so it was said at the time the direct sale was made rather than placing the metal on the open market and perhaps adversely affecting Gold prices China is currently the world s largest gold producer and last year it confirmed it had raised its own Central Bank gold holdings by more than 450 tones over the previous six years China is the world s largest gold producer And yet according to various sources Gold bullion brokers have not seen any gold coming from China In other words China is producing more gold than any other country but isn t exporting any of it As such China is quietly becoming a gold superpower China has a habit of being quiet for several years at a time and then announcing big increases in Gold Holdings The 450 tons figure corresponds to an increase in the gold reserves of the central bank from 600 tons in 2003 to 1054 tons in 2009 If we go by official statements China s gold reserves are increasing by approximately 10 per annum China has risen to now be the largest gold producing nation in the world at around 270 tons The amount bought in by the government initially looks like 90 tons per annum or just under 2 tons a week Before 2003 the announcement by the Chinese central bank that gold reserves had been doubled to 600 tons accounted for similar purchases before that date Why so small an amount you may well ask We think local and national issues clouded the central bank s view as it was the government that bought the gold since 2003 and have now placed it on the central bank s Balance Sheet So we would conclude that the government has ensured central bank gold purchasing must continue Backing the yuan or renminbi with some gold will certainly help it become a major international currency If China backs its currency with gold it could have profound effects for investors If China undervalues its currency and runs a large trade surplus as a result takes a huge radical step and goes all the way to a 100 reserve gold currency If this succeeds China is the new England the financial capital of the world forever In that case China will need to surpass the Federal Reserve s official but un audited gold holding of 8 133 5 tons It seems extremely likely that senior and influential Chinese policy makers bankers and government officials may be having similar thoughts China is the sixth largest holder of gold reserves in the world today and officially has reserves of 1054 1 tons which is less than half those of even euro debtor nations France and Italy who are believed to have 2 435 4 and 2 451 8 tons respectively The only thing that matters from China s perspective is that suppressing the price of gold is very beneficial for the U S in maintaining the U S dollar s role as the international reserve currency China s increased gold reserves will thus act as a model and lead other countries towards reserving more gold Large gold reserves are also beneficial in promoting the internationalization of the RMB Why does Federal Reserve ask Banks to test for 12 Unemployment now The US Federal Reserve is asking 30 big banks to make sure their capital can withstand a deep recession in which the Unemployment rate rises to 12 as reported by MarketWatch As per the Economic data reports released in the previous few months it has always been noticed that that the US Economy was on an uptrend also that the employment was on the rise with the last figure being quoted at 7 8 on November 5 when Gold prices witnessed a huge intraday decline All these reports were before the US Presidential Elections that were held on 6 November 2012 What so devastatingly drastic may have suddenly happened for the Fed to now initiate such a step just within a week of the Elections taking place Why does the Fed now fear that unemployment may rise to 12 Or is it that unemployment has always been around 12 and the reports announced till now have been only eyewash to avoid rocking the boat before the Presidential Elections Will we be in for a shock now with more realistic reports slowly pouring in based on flimsy reasons The Fed which first required big banks to conduct stress tests in 2009 laid out three scenarios lenders have to test against The goal is to ensure that the firms have enough capital to continue operations during stressful economic times The Fed stressed they were not making economic forecasts but rather hypothetical scenarios designed to assess the strength of financial institutions in stressful economic environments In addition to considering an unemployment rate of roughly 12 up from 7 9 in October in the most severe recession scenario banks must evaluate how their capital buffers would withstand real GDP declining by around 5 Banks will also have to test for equity prices that would fall by more than 50 over the course of the recession with house prices declining more than 20 and with commercial real estate prices falling by a similar amount While harsh the Fed stress test isn t necessarily as bad as conditions actually were during the so called Great Recession from late 2007 to 2009 The unemployment rate rose from 4 7 before the recession started in Nov 2007 to as high as 10 the economy shrank as much as 8 9 during one quarter and home prices have tumbled by roughly a third from their peak The 30 largest U S financial institutions will be required to submit capital plans to the Federal Reserve by January 7 The Fed said that 19 of the largest banks under review have hiked their common capital to 803 billion in the second quarter of 2012 from 420 billion in the first quarter of 2009 The Fed uses the stress tests to decide whether to allow banks to issue dividends and implement stock buybacks Under the process banks tell the Fed what dividends and stock buybacks they want to issue For the first time the Fed will allow banks to modify these proposals while they discuss the ongoing stress tests with the central bank The new guidance comes after Ally Financial Inc Citigroup MetLife and SunTrust Banks initially failed to have enough capital under a stress test conducted on 19 big banks by the US Federal Reserve in March The new guidance also conveniently comes after the US Presidential Elections |
C | Goldman Sachs Sees Prolonged Yen Weakness | Jim O Neill Chairman of Goldman Sachs Asset Management is now long term bearish of the Yen Following recent comments from the expected Prime Minister to be Shinzo Abe and weakening economic data such as the current account O Neill now sees a long term bear market for the Japanese currency and investors should take note In his Viewpoint column published each Sunday O Neill said I was quite chuffed with myself for understanding the yen and it was based on pretty simple stuff Japan s persistent and strong balance of payments especially its trade and current account surplus and its associated rising equilibrium exchange rate However with the current account surplus turning to a deficit and new calls for extraordinary monetary policy O Neill is now bearish Was Right BeforeIn 1985 following the Plaza Accord O Neill became bullish of the yen relative to the U S dollar and he was spot on He only turned bullish once in the period between 1985 and today that being in the mid 90 s before switching his stance back to a bullish one He has generally been correct on the pair over this large time horizon and a track record like his is one to admire Thus investors should heed the proverbial call when O Neill changes his view On candidate Abe s political stance for unlimited asset purchases and a tripling of the inflation target to 3 O Neill wrote that This is the sort of thing that many were advising Japan from overseas in the mid to late 90 s when so many people mistakenly lost lots of money betting against the yen Go get all those guys out of retirement as the time has probably come Recent RallyThe combination of weakening economic data deteriorating relations with China which will hurt trade and the increased likelihood of further central bank stimulus has seen the yen and Japanese stocks rally sharply over the past few trading sessions The yen rallied from 79 50 last Monday to as high as 81 52 last week before retreating to the current 81 20 Further Japanese stocks as measured by the Nikkei Index rallied nearly 4 over the same period on hopes of further stimulus O Neill does warn that this story will play out over a long period of time not instantly He sees the yen waffling around for a few months before another leg higher is taken seeing as the recent spike was so large However for those investors with a long timeline this could be the perfect time to take a bearish bet on the yen and see the greenback return to prominence c 2012 Benzinga com Benzinga does not provide investment advice All rights reserved |
BMY | The Extreme Risks Of Trading Your Own Retirement Assets November 04 2019 | You have a significant retirement portfolio You re an experienced investor You ve done pretty well at picking stocks You probably even own a few of Zacks Top Retirement stock picks like
Phillips 66 NYSE PSX Partners LP PSXP Bristol Myers Squibb BMY and Lamar Advertising LAMR
If this sounds like you then here s a question With your background and skills should you manage your own retirement investments
It could be a good idea that is if you are one of the very few investors who understands your own risk tolerance and can keep your emotions in check during chaotic market swings However if you re like the rest of us there are likely more prudent ways to reach your retirement investing goals
Active stock trading requires an altogether different investing philosophy and risk reward understanding than building wealth for retirement
Managing Retirement Investments Stock Picking vs Diversification
While stock picking can potentially result in outsized returns its outsized concentrated risk can pose significant hazards for retirement investors
In fact a study done by Hendrik Bessembinder revealed that only 4 of equities produced all of the stock market s gains over the last 90 years All other stocks broke even with the increases of 38 canceled out by the losses of the bottom 58
For even the most talented stock pickers the odds for long term success are slim
Is Investing Success All In Your Mind
Investors think they can make rational decisions but research shows that the opposite is often true A recent DALBAR study tracked investors from 1986 to 2015 and found that the average investor substantially underperformed compared to the S P 500 Over 30 years the S P 500 returned 10 35 but the average investor return was just 3 66
It is worth noting that this period included the 1987 crash and enormous bear markets in 2000 and 2008 and the positively trending market of the 1990s as well
This study suggests that one key reason for investor underperformance is trying to time volatile markets and that irrational behavior biases tend to compound investor mistakes
Curiously even experienced traders tend to underperform since they can t resist the emotional urge to make impulsive investment choices They might be overly self assured and miscalculate risk get attached to a price target or perceive a pattern that does not exist This behavioral fallacy over the long term can be disastrous with potential underperformance of a huge number of dollars disrupting your retirement
What It All Means for Retirement Investors
Your retirement portfolio should be managed with a strategy of performance over decades not days weeks or quarters Most self directed investors tend to fall short when it comes to long term results
Does that mean you should give up trading Not necessarily One solution is to take 10 of your investable assets and trade to generate alpha and seek outsized returns
But the bulk of your wealth those assets earmarked for retirement should be invested using a more measured conservative risk management approach to generate steady compounded returns so you can safely reach your retirement goals
Did you know that one in six people retire a multi millionaire
Read our just released report 7 Things You Can Do Now to Retire a Multi Millionaire This report can help you maintain and increase assets heading into retirement while avoiding costly mistakes Click here for a free report |
BMY | Zacks com Featured Highlights Include Group 1 Automotive AbbVie Brinker International Hewlett Packard Enterprise And Bristol Myers Squibb | For Immediate ReleaseChicago IL November 7 2019 Stocks in this week s article are Group 1 Automotive Inc NYSE GPI AbbVie NYSE ABBV Brinker International NYSE EAT Hewlett Packard Enterprise Company NYSE HPE and Bristol Myers Squibb NYSE BMY 5 High Flying Stocks That Can Scale HigherA 52 week high generally serves as an indicator for investors as stocks near that level are perceived to be winners Notably investors often wonder if the stock is overpriced considering the high price While the apprehensions are not absolutely baseless all stocks hitting a 52 week high are not necessarily overpriced In fact an investor might miss out on top gainers in an attempt to avoid the steep prices of stocks that are near their 52 week high mark A stock can maintain the momentum and keep scaling new highs So one should take a more informed approach to understand if further upside is left Here we discuss a strategy to find the right stocks Borrowing from the basics of momentum investing this technique bets on buy high sell higher 52 Week High A Good IndicatorMany a time stocks hitting a 52 week high fail to scale higher despite having potential This is because investors fear that the stocks are overvalued and a price crash is impending In fact overvaluation is natural for most of these stocks as investors focus or willingness to pay premium has helped them reach the level But that does not always indicate an impending decline Factors such as robust sales surging profit levels earnings growth prospects and strategic acquisitions that encouraged investors to bet on these stocks could keep them motivated if there is no tangible negative In other words the momentum might continue Also when a string of positive developments dominates the market investors find their under reaction unwarranted even if there are no company specific driving forces For the rest of this Screen of the Week article please visit Zacks com at Disclosure Officers directors and or employees of Zacks Investment Research may own or have sold short securities and or hold long and or short positions in options that are mentioned in this material An affiliated investment advisory firm may own or have sold short securities and or hold long and or short positions in options that are mentioned in this material About Screen of the WeekZacks com created the first and best screening system on the web earning the distinction as the 1 site for screening stocks by Money Magazine But powerful screening tools is just the start That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use Strong Stocks that Should Be in the NewsMany are little publicized and fly under the Wall Street radar They re virtually unknown to the general public Yet today s 220 Zacks Rank 1 Strong Buys were generated by the stock picking system that has more than doubled the market from 1988 through 2016 Its average gain has been a stellar 25 per year Follow us on Twitter Join us on Facebook NASDAQ FB Zacks Investment Research is under common control with affiliated entities including a broker dealer and an investment adviser which may engage in transactions involving the foregoing securities for the clients of such affiliates Contact Jim GiaquintoCompany Zacks comPhone 312 265 9268Email Visit Zacks com provides investment resources and informs you of these resources which you may choose to use in making your own investment decisions Zacks is providing information on this resource to you subject to the Zacks Terms and Conditions of Service disclaimer Past performance is no guarantee of future results Inherent in any investment is the potential for loss This material is being provided for informational purposes only and nothing herein constitutes investment legal accounting or tax advice or a recommendation to buy sell or hold a security No recommendation or advice is being given as to whether any investment is suitable for a particular investor It should not be assumed that any investments in securities companies sectors or markets identified and described were or will be profitable All information is current as of the date of herein and is subject to change without notice Any views or opinions expressed may not reflect those of the firm as a whole Zacks Investment Research does not engage in investment banking market making or asset management activities of any securities These returns are from hypothetical portfolios consisting of stocks with Zacks Rank 1 that were rebalanced monthly with zero transaction costs These are not the returns of actual portfolios of stocks The S P 500 is an unmanaged index Visit for information about the performance numbers displayed in this press release |
HAL | Canada s Very Accommodative Monetary Policy | The speech given yesterday by Carolyn Wilkins the Bank of Canada s Senior Deputy Governor in no way reassured markets with respect to the Canadian economy In addition to specifying that the economy has room to grow Ms Wilkins also stated that current low crude oil prices represent a risk to the country s financial stability Schulumberger Halliburton NYSE HAL has also announced layoffs to its workforce eliminating close to 5 000 positions These decisions are another sign that major oil and gas companies are postponing or cancelling exploration and expansion projects
According to Ms Wilkins the Bank of Canada has the tools required to help the country s economy get through this rough patch This speech was entirely consistent with market expectations for another key rate cut Consequently the loonie could remain weak in the short term
Lastly attention will now turn to Europe specifically on the crucial meeting of European finance ministers that gets underway today Have a great day
Julien Duquette
Range of the day 1 2600 1 2730 |
C | GLOBAL MARKETS Euro slips ahead of stress tests stocks up | Euro slips ahead of stress test results
Euro recovers against dollar Swiss franc
Gold eases after nine session winning streak
Updates to U S stock market opening changes byline
dateline previous LONDON
By Caroline Valetkevitch
NEW YORK July 15 Reuters The euro fell against the
dollar on Friday ahead of the release of European bank stress
tests while stocks mostly gained on strong U S earnings
Gold edged lower after hitting record highs this week with
some of the recent risk aversion easing
Wall Street stocks gained after results from companies
including Citigroup and Google added to optimism
about second quarter earnings But indexes are down for the
week Worries about the persistent euro zone debt woes have
weighed on markets along with the prospect of a U S debt
default
European Banking Authority test results due to be
published at 1600 GMT are expected to show that as many as 15
lenders need more capital to withstand a prolonged recession
with criticism growing that the tests do not encompass the
impact of a Greek default For details see ID nL6E7IE23E
Investors remain deeply concerned by Europe s inability to
find a broader solution to a debt crisis that could eventually
lead to a series of defaults and have wide ranging implications
for public finances and banks worldwide
The stock market has been focusing on the debt problems
in broad but we have been getting good earnings results from
big names said Peter Cardillo chief market economist at
Avalon Partners in New York If we get some resolution on the
debt ceiling the market is going to focus more on the
earnings
The Dow Jones industrial average was up 48 06
points or 0 39 percent at 12 485 18 The Standard Poor s
500 Index was up 7 05 points or 0 54 percent at
1 315 92 The Nasdaq Composite Index was up 21 42
points or 0 78 percent at 2 784 09
Stocks briefly pared gains after a report showed U S
consumer sentiment was at its worst since March 2009
The FTSEurofirst 300 index of leading European
shares was up 0 02 percent while the MSCI All Country World
Index rose 0 2 percent In Asia Japan s Nikkei
average closed 0 4 percent higher
In the foreign exchange market the euro was down
0 1 percent at 1 4125
The euro has borne up relatively well against the dollar
due to parallel concerns over the United States own debt
troubles and hints further monetary easing could yet be on the
cards there potentially flooding global markets with dollars
Worries the euro zone debt crisis was spreading to Italy
have driven Italian bond yields up half a percent
since last Friday and slashed valuations of financial sector
firms across the region
Additional reporting by Dominic Lau Atul Prakash William
James Jessica Mortimer and Simon Jessop in London and Edward
Krudy in New York Graphics by Scott Barber and Vincent
Flasseur Editing by James Dalgleish |
C | GLOBAL MARKETS Bank stress tests weigh on euro and equities | Euro slips ahead of stress test results
European stocks slip U S stocks up slightly
Gold eases after nine session winning streak
Updates prices adds details
By Caroline Valetkevitch
NEW YORK July 15 Reuters Anxiety over the results of
European bank stress tests drove down the euro against the
dollar on Friday and kept a lid on equities on both sides of
the Atlantic despite strong earnings from Google and
Citigroup
Gold slipped after hitting record highs this week with
some of the recent risk aversion easing
Worries about the persistent euro zone debt woes have
weighed on markets along with the prospect of a U S debt
default
The stress tests on European banks are expected to show
that as many as 15 lenders need more capital to withstand a
prolonged recession with criticism growing that the tests do
not encompass the impact of a Greek default The results are to
be published at about 1600 GMT For details see
ID nL6E7IF19G
Investors remain deeply concerned by Europe s inability to
find a broader solution to a debt crisis that could eventually
lead to a series of sovereign defaults and have wide ranging
implications for public finances and banks worldwide
There s a general sense of nervousness prevailing because
of the stress tests said Boris Schlossberg director of FX
research at GFT in New York
The euro edged lower to 1 41251 down 0 1 percent
while on the week the euro was down 0 6 percent versus the
dollar
The FTSEurofirst 300 index of leading European
shares was down 0 1 percent while the MSCI All Country World
Index rose 0 1 percent
Wall Street stocks opened higher after both Citigroup
and Google reported stronger than expected earnings
adding to optimism about corporate results for the second
quarter But the market pared gained on concern over the
European bank stress tests and signs of weakness in the U S
economy
U S consumer sentiment in early July fell to its lowest
since March 2009 and manufacturing in New York state contracted
unexpectedly according to data released on Friday Indexes are
down for the week
The Dow Jones industrial average was up 23 72
points or 0 19 percent at 12 460 84 The Standard Poor s
500 Index was up 4 41 points or 0 34 percent at
1 313 28 The Nasdaq Composite Index was up 17 94
points or 0 65 percent at 2 780 61
Overnight in Asia Japan s Nikkei average closed
0 4 percent higher
The dollar was supported by some safe haven buying due to
the contraction in the New York state s manufacturing index in
July and the drop in a U S consumer sentiment index spurred
some safe haven buying of the greenback The euro and some
risk sensitive currencies such as the Australian and New
Zealand dollars fell against the dollar
But the focus remained squarely on the critical euro zone
bank stress tests They are expected to show that around 10 15
lenders have insufficient capital to withstand a prolonged
recession ID nL6E7IE23E
Traders however cited talk that banks in the euro zone
failing the tests could actually be more than 20
The key number is 15 If the number is higher than 15
banks then that would create a disturbance in euro dollar
said Schlossberg of GFT
The euro has borne up relatively well against the dollar
due to parallel concerns over the United States own debt
troubles and hints further monetary easing could yet be on the
cards there potentially flooding global markets with dollars
Worries the euro zone debt crisis was spreading to Italy
have driven Italian bond yields up half a percent
since last Friday and slashed valuations of financial sector
firms across the region
U S Treasury prices rose as worries over the fallout from
the prolonged debt crisis in Europe and stalled U S budget and
deficit talks bolstered the safe haven appeal of U S
government debt
Benchmark 10 year Treasury notes were trading
8 32 higher in price to yield 2 93 percent down from 2 96
percent late Thursday
Spot gold was bid at 1 583 49 a troy ounce from
1 586 75 an ounce late in New York on Thursday when the
precious metal hit a record high of 1 594 16
Additional reporting by Dominic Lau Atul Prakash William
James Jessica Mortimer and Simon Jessop in London and Edward
Krudy in New York Graphics by Scott Barber and Vincent
Flasseur Editing by Leslie Adler |
C | GLOBAL MARKETS Euro rises on relief on bank stress tests | Euro slips ahead of stress test results
European stocks slip U S stocks up slightly
Gold eases after nine session winning streak
Updates prices adds details
By Caroline Valetkevitch
NEW YORK July 15 Reuters The euro edged up against the
dollar on Friday after results of European bank stress tests
eased some worries about the outlook for the region s financial
system while on Wall Street stocks struggled to hold gains
Gold prices rose for a 10th straight session as fears over
the outcome of talks to avert a U S default fueled safe haven
buying which accelerated after President Barack Obama and
Republicans traded demands for a serious deficit plan
Only eight of the 90 European banks surveyed by the
European Banking Authority failed the stress tests well below
market expectations that as many as 15 lenders would need more
capital to withstand a prolonged recession
It s a relief not more banks failed said Thomas Roth
executive director of U S government bond trading at
Mitsubishi UFJ Securities USA Inc in New York
The test results which were released after European stock
markets had closed measured the banks ability to withstand a
prolonged recession that did not build in the impact of a Greek
default For details see ID nL6E7IF19G
European bank ADRs mostly gained including Barclays
up 0 3 percent at 14 60
Worries about the persistent euro zone debt woes have
weighed on markets along with the prospect of a U S debt
default
Investors remain deeply concerned by Europe s inability to
find a broader solution to a debt crisis that could eventually
lead to a series of sovereign defaults and have wide ranging
implications for public finances and banks worldwide
The euro hit a high of 1 41900 a New York session high
It was last at 1 41572 up 0 1 percent
The euro has borne up relatively well against the dollar
due to parallel concerns over the United States own debt
troubles and hints further monetary easing could yet be on the
cards there potentially flooding global markets with dollars
On Wall Street stocks held on to slight gains also helped
by Citigroup and Google which reported much
stronger than expected earnings adding to optimism about
corporate results for the second quarter
U S consumer sentiment in early July fell to its lowest
since March 2009 and manufacturing in New York state contracted
unexpectedly according to data released on Friday Indexes are
down for the week
The Dow Jones industrial average was up 2 68 points
or 0 02 percent at 12 439 80 The Standard Poor s 500 Index
was up 3 02 points or 0 23 percent at 1 311 89 The
Nasdaq Composite Index was up 19 28 points or 0 70
percent at 2 781 95
With the European banks stress test out of the way the
market has stabilized a bit but we still have a lot to be
nervous about mainly the U S debt ceiling issue said Randy
Frederick director of trading and derivatives at the Schwab
Center for Financial Research in Texas Austin
The FTSEurofirst 300 index of leading European
shares ended down 0 2 percent while the MSCI All Country World
Index rose 0 1 percent
Overnight in Asia Japan s Nikkei average closed
0 4 percent higher
Worries the euro zone debt crisis was spreading to Italy
have driven Italian bond yields up half a percent
since last Friday and slashed valuations of financial sector
firms across the region
U S Treasury prices rose modestly as the public debt
problems on both sides of the Atlantic and worries over a
faltering U S economy revived safe haven demand for U S
government debt
Benchmark 10 year Treasury notes were trading
4 32 higher in price to yield 2 94 percent down from 2 96
percent late Thursday
Oil and gold prices also rose
U S crude led the oil complex higher rising 1 75
97 44 a barrel Brent crude gained 1 19 to trade at
117 45 a barrel
Spot gold was up 0 2 percent at 1 589 89 an ounce
It failed to hit a new peak after rallying to all time highs in
the previous two sessions
The longer the debt talk drags on the more you would want
to own a safe haven like gold The crude oil market is also
rallying quite nicely and that s a big element in support for
gold said James Steel chief commodity analyst at HSBC
Additional reporting by Dominic Lau Atul Prakash William
James Jessica Mortimer and Simon Jessop in London Richard
Leong Frank Tang and Angela Moon in New York Graphics by
Scott Barber and Vincent Flasseur Editing by Leslie Adler |
C | US debt hopes boost European shares | FTSEurofirst 300 rises 0 8 pct
Handelsbanken up on strong profit
BHP other miners rise
By Brian Gorman
LONDON July 20 Reuters European share prices rose on
Wednesday building on gains made in the previous session after
Wall Street rose sharply after some strong corporate results and
renewed hopes for an agreement in Washington on the U S budget
By 0842 GMT the FTSEurofirst 300 index of top
European shares was up 0 8 percent at 1 085 00 points
after rising 0 8 percent in the previous session
It s important that there are slightly more positive tones
coming out of Capitol Hill at least averting an immediate issue
with their debt ceiling said Lothar Mentel chief investment
officer at Octopus Investments which manages 4 billion
Blockbuster sales of the iPhone and strong Asian business
again helped Apple Inc crush Wall Street s
expectations driving its shares up more than 7 percent to a
record high
The Stoxx Europe 600 tech sector advanced 1 percent
on Wednesday with ARM Holdings up 3 8 percent but
stocks in Europe rose across the board with the recently
weakened STOXX Europe 600 banking sector index also up 1
percent
Sweden s Handelsbanken rose 2 3 percent after it
reported a better than expected operating profit in the second
quarter thanks to lower than predicted loan losses
The pan European index touched a new low for 2011 on
Tuesday 1065 72 slightly lower than the mid March low
1066 62 Analysts said it would continue to trade in a narrow
range The index hit a 2011 high of 1 190 51 in mid February
We re within the trading range driven by good and bad
news The U S earnings season will be a positive catalyst and
gives us more perspective compared to the worries and concerns
about the euro zone debt crisis I don t expect markets to break
out of the trading range
BHP Billiton rose 2 9 percent after the world s
biggest miner posted a faster than expected recovery in output
after a flood hit start to the year
The Stoxx Europe 600 Basic Resources index rose 1 5
percent Other miners to gain with copper prices having hit
three month highs on Tuesday included Rio Tinto up 2 3
percent
SMALL AND MID CAPS
However strategists at Citigroup pointed to European
smaller and medium sized companies outperforming A six month
earnings momentum strategy continues to produce results for the
small and mid caps We expect this strategy will continue to
outperform from here Citi said in a note
Earnings momentum strategies continue to be broadly
pro cyclical with a preference for emerging markets exposure
Financial Services look stronger than they did on six month
earnings momentum and is the top sector on shorter term earnings
momentum
Armed with a new template U S president Barack Obama and
congressional leaders will try on Wednesday to see if an
elevent hour deal is still possible to avert a rapidly
approaching default on the country s tumultuous debt The
ambitious new plan offers a ray of hope in an increasingly grim
stand off that has threatened the United States top notch
credit rating
Meanwhile leaders of the 17 nation euro zone currency bloc
are due to gather in Brussels on Thursday for emergency talks in
a bid to draw a line under Greece s spiralling debt crisis
But strategists were not optimistic the issue will be
resolved soon
This will drag on The inability of the EU and other
countries will serve to moderate the market s gains said
Mentel
In other economic news the Bank of England s Monetary
Policy Committee voted 7 2 to leave interest rates at their
record low 0 5 percent this month and judged that recent
economic weakness had reduced the chance that rates would need
to rise in the near term minutes to the BoE s July meeting
showed on Wednesday
For rolling updates on what is moving European shares please
click on
For pan Europeanmarket data and news click on codes in
brackets European Equities speed
guide FTSEurofirst 300
index STOXX Europe
index Top 10 STOXX
sectors Top 10
EUROSTOXX sectors Top 10
Eurofirst 300 sectors Top 25
European pct gainers Top 25
European pct losers
Main stock markets Dow Jones Wall
Street report Nikkei 225 Tokyo
report FTSE 100 London
report Xetra DAX
CAC 40 World
Indices 0 INDEX Reuters
survey of world bourse outlook Western
European IPO diary European
Asset Allocation
Reuters News at a Glance Equities
Main currency report
1 0 705 Euros
Keywords MARKETS EUROPE STOCKS |
C | USD SGD Corrective Wave 4 Underway | USD SGD A corrective wave 4 is underway A larger corrective wave from 1 1990 Jul 11 low may be unfolding in a multi month flat wave within a range of 1 3200 and 1 2000 The setback from 1 2970 June high could be a wave C which could retest the 1 1990 support A reversal above 1 2560 would refocus on the 1 2970 1 3200 resistance initially A close below 1 2000 however extends the bear run deeper The pair is attempting a wave 4 corrective recovery from 1 2145 with potential bullish divergences in daily RSI The recovery is shallow so far and the corrective wave is likely to continue while it holds above 1 2145 A break above 1 2240 could extend the recovery toward 1 2300 1 2340 ahead of tough resistance at 1 2400 watch the daily trend channel A move below 1 2145 however would aim for 1 2100 ahead of strong support around 1 2000 |
C | GBP USD If The BOE Stands Still | GBP USD slid back below 1 6100 after yesterday s failure to break above the 1 6180 resistance The pair returned below the resistance line descending from September highs and came back into the daily Ichimoku title GBP USD width 911 height 662 Bulls however keep their hopes up Sterling may start a new rally in the nearest future if Bank of England refrains from further QE on November 8 meeting after strong UK growth figures Specialists at Citigroup underline that pound may benefit against all the other currencies where regulators are dovish Bank of New York Mellon If we don t see more QE it would be a boost for sterling because there will be some investors out there who have priced it in OCBC The recent downtrend of the cable may have been neutralized in the near term as QE expectations continue to fade We recommend buying GBP USD on the dips after the pair returns back above 1 6100 Initial resistance is seen at 1 6200 Resistance 1 6185 November 1 high 1 6214 October high 1 6308 2012 high Support 1 6064 50 day MA 1 6005 October 29 minimum 1 5935 October lows |
C | Obama Win Favors Easy Money Policy Bullions Rise | Barack Obama defeated Republican Mitt Romney winning at least 303 electoral votes with 270 needed for victory Gold and Silver continued climbing for a third day after rising very sharply yesterday on expectations the U S will continue stimulus measures to boost the economy after President Barack Obama defied history and won the Presidential election for a second term President Barack Obama was re elected president Tuesday night put over the top by the crucial battleground state of Ohio following the most expensive election in U S history Obama became only the second Democrat since Roosevelt to win another term You made your voices heard and you made a difference Obama told supporters I will return to the White House more inspired and more determined than ever he said We ve got more work to do The best is yet to come This happened because of you Thank you Obama tweeted to supporters It got retweeted more than 318 000 times a record The crowd welcomed him by chanting Four more years There will be an immediate shift to government gridlock and the fiscal cliff issue and that will be a headwind for stock markets Obama win has U S investors staring at Fiscal Cliff President Barack Obama will still have to contend with a Republican controlled House of Representatives that could make forging a compromise on pressing issues like the coming Fiscal Cliff difficult A looming budget crisis could send the US Economy reeling President Obama will soon need to address a so called Fiscal Cliff of more than 600 billion in tax increases and spending cuts scheduled to take effect at the end of 2012 that could severely strain economic growth unless Congress can reach a budget compromise Obama is expected to demand tax increases for the wealthy as part of a deal to reduce spending to tackle the nation s deficit Steven Englander Citigroup s head of G10 foreign exchange strategy said markets could panic toward year end if it looks as though no deal is imminent to avoid the fiscal cliff reported Reuters If that happens investors will think twice about lending the U S government money at low interest rates which would strain the economy widen the budget deficit and hurt the dollar It also raises the possibility that major credit rating agencies will cut the U S debt rating The market reacted harshly to Washington gridlock after failed legislation to backstop the banks in 2008 and again during protracted talks to raise the U S debt ceiling in 2011 Standard Poor s stripped the U S of its pristine triple A rating in 2011 the agencies have said they will evaluate budget negotiations and solutions and may take action next year Gold Bulls Ecstatic An Obama win favors a continuation of the current easy money policy The Obama win did remove uncertainty about the future of Fed policy The Fed s increased emphasis on employment is here to stay The Gold Markets reward this certainty by bidding up Gold selling off the US dollar versus all major currencies Comex gold and silver shot up higher on Expectations of an Obama win and also as the market recovered from the rather hard slide that it took on Friday when Gold markets priced in a Romney win Gold and Silver will retain bullishness till the easy monetary policy remains in force as Inflation rises are a certain aftereffect of this kind of a policy action The Fed s easy money policy has pushed down the value of the dollar though and some worry more dollar weakness may be in store particularly if investors see signs of rising Inflation Gold remains a natural hedge option in a scenario where Inflation rises sharply The Fed said October 24 it will maintain 40 billion in monthly purchases of mortgage debt and probably hold interest rates near zero until mid 2015 The Fed s increased emphasis on employment is here to stay The US dollar reversed earlier gains versus the euro after Obama defeated Republican challenger Mitt Romney on speculation Obama s re election as President will boost chances of the US continuing monetary stimulus policies that tend to weaken the currency The US Federal Reserve had unveiled a plan in September 2012 to buy 40 billion of MBS Mortgage backed securities every month in a third round of so called quantitative easing QE3 after 2 3 trillion purchases of bonds from December 2008 and June 2011 Any worries that the Federal Reserve is done with stimulus are unfounded and the future still looks bright for more easing programs Fed may soon introduce a new plan of Treasury purchases when Operation Twist winds down into year end A Chinese National Party Congress should be favorable to industrial metals crude oil and gold due to prospects for new stimulus policies Also if Greece passes austerity measures and receives further financial assistance this should make markets feel better and help commodities to move higher We should start seeing more demand for gold as a result of purchasing power hedging and due to the low opportunity cost to hold it as real interest rates are likely to decline further It could be argued that the Fed would not mind higher inflation and that if there was a policy error to be made it would be on the side of inflation All above mentioned factors are highly Gold supportive Lower interest rates historically have helped gold prices and higher rates have been gold negative Greece on Fresh Austerity Measures Demand for the euro was limited as Greece headed for a vote on austerity measures needed to keep its bailout on track In Greece the 238 pages of austerity measures ranging from raising the retirement age two years to 67 to eliminating Christmas and holiday payments for pensioners will be debated in the 300 seat Parliament today Approval of the legislation is the first of the parliamentary votes required by November 12 to unlock a 31 billion euro 40 billion portion of international aid Greek Prime Minister Antonis Samaras must stem defections from his three party coalition to convince European Union leaders that his government is serious about staying in the euro and implementing reforms |
JPM | Barclays set to name ex JPMorgan banker Staley as new CEO | By Lawrence Delevingne Reuters Britain s third largest bank Barclays L BARC PLC is close to naming former JPMorgan Chase N JPM banker Jes Staley as its new chief executive a person with knowledge of the situation said on Monday Barclays offered the position to Staley currently managing partner of U S hedge fund firm BlueMountain Capital Management and he accepted the offer according to the person A second person familiar with the matter said Staley was on a shortlist of potential successors but could not confirm the appointment Any appointment would also still depend on Staley getting approval from Britain s financial regulators The appointment which was first reported by the FT is expected to be announced in the next two weeks it said citing two people familiar with the matter Staley who was on the shortlist when Barclays looked for a CEO in 2012 had left JPMorgan in early 2013 after 34 years at the bank to join Blue Mountain Capital Staley ran JPMorgan s investment bank and asset management business Picking Staley could see Barclays put renewed focus on its investment bank which the bank has been shrinking in the past three years in an effort to cut costs and improve profitability Previous CEO Antony Jenkins who was fired in July for losing the support of non executive directors in a clash over style and the pace of the bank s turnaround had said the bank had to reduce the importance of the investment bank after a series of scandals while changes in regulation also made many trading activities unprofitable Chairman John McFarlane who has been running the bank in the interim since Jenkins exit had said earlier in July that it will look at internal as well as external candidates to make an appointment An appointment of Staley would see a second former JPMorgan investment bank boss running a British bank after Standard Chartered L STAN this year picked Bill Winters as its new CEO Barclays finance director Tushar Morzaria is another former JPMorgan executive showing the growing influence of the US bank s alumni in London
Barclays PLC was not immediately available for comment An external spokesman for BlueMountain declined to comment |
JPM | Barclays says still in process of naming new CEO | Reuters Barclays Plc L BARC said on Tuesday it was still in the process of appointing a new chief executive officer amid ongoing rumors that the British bank was close to naming former JPMorgan Chase Co N JPM banker Jes Staley to the post
Barclays said it would provide an update once the process is complete |
JPM | New Barclays CEO faces early challenge to fix wealth arm | By Steve Slater and Sinead Cruise LONDON Reuters The new chief executive of British bank Barclays L BARC expected to be former JPMorgan N JPM banker Jes Staley faces an early challenge in deciding what to do in wealth management after a decade of disappointment Most scrutiny is on whether the new CEO replacing Antony Jenkins after his ouster in July will continue to scale back in investment banking or build it back up But investors said there are other areas that need selling fixing or deserve to be expanded A push into wealth management could help towards growing the dividend because there s a greater visibility of earnings but on the other hand that type of business is vulnerable to market fluctuations said Paul Mumford senior investment manager at Cavendish Asset Management We have to wait for some sort of statement of intent This is a company that is capable of reinventing itself and changing strategy and refocusing onto areas it might not have concentrated so much on before Mumford added Staley is close to being appointed CEO a person with knowledge of the situation said on Monday The American spent most of his 34 years at JPMorgan in its investment bank but also ran its private bank for two years then asset management for eight years from 2001 Barclays has failed with big plans in the past for its wealth business including an ambitious five year initiative set out in 2010 known internally as Project Gamma It wanted to double assets under management AUM to 300 billion pounds 457 billion and lift annual profits to between 600 and 700 million people familiar with the matter said But it didn t get close AUM were 131 billion in 2014 ranking it 25th biggest private bank with a market share of about 0 6 percent according to Scorpio Partnership a wealth management consultancy By comparison market leader UBS had 2 trillion in AUM for a market share of 10 percent Scorpio estimated SIGNIFICANT PROGRESS Barclays Wealth and Investment Management sank to a loss of 98 million pounds in 2013 and the bank stopped reporting profits for the business after it was folded into retail and corporate banking last year The business was cut back by Jenkins as part of a wider restructuring to rein in costs cut complexity and boost profitability Two years ago it said it would stop offering wealth management services in about 130 countries and cut jobs and in June it sold its U S wealth and investment management business to Stifel making a loss on the sale Akshaya Bhargava was appointed last year to run the business which a spokeswoman said had made significant progress adding Barclays remained focused on positioning the business for sustainable long term growth in target markets around the world Barclays is not alone in struggling to crack private banking where scale matters and customers can be reluctant to move making it hard to win new business Every bank wants to do private banking because they look at the big Swiss banks and see the scale of money they make and think even if they could get a tiny slice of that pie it would move earnings materially said Chirantan Barua analyst at Sanford Bernstein But he said Barclays and other banks lack scale in wealth management and the main benefit from the business is the liquidity and funding they get from deposits rather than from profits That has deterred some from selling as has the prize of tapping into the world s 36 million millionaires almost treble the number of 2000
1 0 6569 pounds |
BMY | Is Bristol Myers Squibb BMY A Great Value Stock Right Now | Here at Zacks our focus is on the proven Zacks Rank system which emphasizes earnings estimates and estimate revisions to find great stocks Nevertheless we are always paying attention to the latest value growth and momentum trends to underscore strong picks
Considering these trends value investing is clearly one of the most preferred ways to find strong stocks in any type of market Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits For example value investors will be interested in stocks with great grades in the Value category When paired with a high Zacks Rank A grades in the Value category are among the strongest value stocks on the market today
One stock to keep an eye on is Bristol Myers Squibb BMY BMY is currently holding a Zacks Rank of 2 Buy and a Value grade of A The stock holds a P E ratio of 11 07 while its industry has an average P E of 14 61 Over the past year BMY s Forward P E has been as high as 13 54 and as low as 9 22 with a median of 10 71
We also note that BMY holds a PEG ratio of 1 11 This metric is used similarly to the famous P E ratio but the PEG ratio also takes into account the stock s expected earnings growth rate BMY s industry has an average PEG of 1 75 right now Within the past year BMY s PEG has been as high as 2 48 and as low as 1 07 with a median of 2 01
Another valuation metric that we should highlight is BMY s P B ratio of 5 63 Investors use the P B ratio to look at a stock s market value versus its book value which is defined as total assets minus total liabilities BMY s current P B looks attractive when compared to its industry s average P B of 5 66 Over the past year BMY s P B has been as high as 6 42 and as low as 4 33 with a median of 5 14
Value investors also frequently use the P S ratio This metric is found by dividing a stock s price with the company s revenue This is a popular metric because sales are harder to manipulate on an income statement so they are often considered a better performance indicator BMY has a P S ratio of 3 9 This compares to its industry s average P S of 3 98
Finally investors should note that BMY has a P CF ratio of 13 23 This metric takes into account a company s operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook BMY s P CF compares to its industry s average P CF of 15 02 BMY s P CF has been as high as 42 24 and as low as 10 18 with a median of 13 23 all within the past year
Value investors will likely look at more than just these metrics but the above data helps show that Bristol Myers Squibb is likely undervalued currently And when considering the strength of its earnings outlook BMY sticks out at as one of the market s strongest value stocks |
BMY | BMY Or AZN Which Is The Better Value Stock Right Now | Investors interested in stocks from the Large Cap Pharmaceuticals sector have probably already heard of Bristol Myers Squibb BMY and Astrazeneca LON AZN But which of these two stocks presents investors with the better value opportunity right now Let s take a closer look
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends while our Style Scores work to grade companies based on specific traits
Right now Bristol Myers Squibb is sporting a Zacks Rank of 2 Buy while Astrazeneca has a Zacks Rank of 3 Hold Investors should feel comfortable knowing that BMY likely has seen a stronger improvement to its earnings outlook than AZN has recently But this is just one factor that value investors are interested in
Value investors analyze a variety of traditional tried and true metrics to help find companies that they believe are undervalued at their current share price levels
Our Value category highlights undervalued companies by looking at a variety of key metrics including the popular P E ratio as well as the P S ratio earnings yield cash flow per share and a variety of other fundamentals that have been used by value investors for years
BMY currently has a forward P E ratio of 13 28 while AZN has a forward P E of 27 39 We also note that BMY has a PEG ratio of 1 34 This metric is used similarly to the famous P E ratio but the PEG ratio also takes into account the stock s expected earnings growth rate AZN currently has a PEG ratio of 1 61
Another notable valuation metric for BMY is its P B ratio of 5 76 The P B is a method of comparing a stock s market value to its book value which is defined as total assets minus total liabilities By comparison AZN has a P B of 9 41
Based on these metrics and many more BMY holds a Value grade of A while AZN has a Value grade of C
BMY has seen stronger estimate revision activity and sports more attractive valuation metrics than AZN so it seems like value investors will conclude that BMY is the superior option right now |
BMY | Infinity INFI Q3 Loss Wider Than Expected IPI 549 In Focus | Infinity Pharmaceuticals Inc NASDAQ INFI incurred a loss of 20 cents per share in the third quarter of 2019 wider than the Zacks Consensus Estimate of a loss of 18 cents Moreover the figure came against the year ago reported earnings of 23 cents Also the company s recognized royalty revenues of 0 34 million lagged the Zacks Consensus Estimate of 1 million Meanwhile the company did not record any revenues in the year ago quarter Shares of Infinity have lost 11 1 year to date versus the increase of 3 1 Quarter in DetailResearch and development expenses escalated 31 5 year over year to 7 1 million in the reported quarter mainly due to an increase in clinical and development activities for IPI 549 General and administrative expenses rose 5 9 to 3 6 million in the reported quarter As of Sep 30 2019 Infinity had total cash and cash equivalents of 52 million compared with 63 million at the end of Jun 30 2019 The company expects its existing cash cash equivalents and available for sale securities to be adequate for meeting its capital needs at least through the next 12 months Pipeline UpdateIn September 2019 the company initiated a phase II MARIO 3 study in collaboration with Roche AG OTC RHHBY evaluating IPI 549 in combination with Tecentriq and Abraxane nab paclitaxel for the treatment of front line triple negative breast cancer TNBC The above mentioned study also includes a cohort evaluating IPI 549 in combination with Tecentriq and Avastin bevacizumab for front line PDL1 and PDL1 renal cell cancer RCC patients Infinity plans to present data from the study in 2020 The company is also conducting a phase I Ib MARIO 1 study evaluating IPI 549 as a monotherapy and in combination with Bristol Myers NYSE BMY PD 1 immune checkpoint inhibitor Opdivo for addressing patients with advanced solid tumors Infinity plans to complete enrollment by this year end and present the study data next year Infinity is also conducting a phase II MARIO 275 study investigating the combo of IPI 549 plus Opdivo in platinum refractory I O na ve patients with advanced urothelial cancer Meanwhile in September 2019 Arcus Biosciences NYSE RCUS initiated a phase I study in collaboration with Infinity evaluating IPI 549 in combination with AB298 Arcus dual adenosine receptor antagonist and Doxil a chemotherapy for treating patients with advanced triple negative breast cancer TNBC 2019 OutlookThe company expects net loss for 2019 in the range of 40 50 million unchanged from the previous quarter s guidance Infinity Pharmaceuticals Inc Price Consensus and EPS Surprise Zacks RankInfinity currently carries a Zacks Rank 3 Hold You can see Free Zacks Single Best Stock Set to DoubleToday you are invited to download our just released Special Report that reveals 5 stocks with the most potential to gain 100 or more in 2020 From those 5 Zacks Director of Research Sheraz Mian hand picks one to have the most explosive upside of all This pioneering tech ticker had soared to all time highs and then subsided to a price that is irresistible Now a pending acquisition could super charge the company s drive past competitors in the development of true Artificial Intelligence The earlier you get in to this stock the greater your potential gain |
BMY | Bristol Myers Squibb BMY Q3 Earnings And Revenues Top Estimates | Bristol Myers Squibb BMY came out with quarterly earnings of 1 17 per share beating the Zacks Consensus Estimate of 1 06 per share This compares to earnings of 1 09 per share a year ago These figures are adjusted for non recurring items
This quarterly report represents an earnings surprise of 10 38 A quarter ago it was expected that this biopharmaceutical company would post earnings of 1 06 per share when it actually produced earnings of 1 18 delivering a surprise of 11 32
Over the last four quarters the company has surpassed consensus EPS estimates four times
Bristol Myers which belongs to the Zacks Large Cap Pharmaceuticals industry posted revenues of 6 01 billion for the quarter ended September 2019 surpassing the Zacks Consensus Estimate by 3 54 This compares to year ago revenues of 5 69 billion The company has topped consensus revenue estimates three times over the last four quarters
The sustainability of the stock s immediate price movement based on the recently released numbers and future earnings expectations will mostly depend on management s commentary on the earnings call
Bristol Myers shares have added about 9 4 since the beginning of the year versus the S P 500 s gain of 21 5
What s Next for Bristol Myers
While Bristol Myers has underperformed the market so far this year the question that comes to investors minds is what s next for the stock
There are no easy answers to this key question but one reliable measure that can help investors address this is the company s earnings outlook Not only does this include current consensus earnings expectations for the coming quarter s but also how these expectations have changed lately
Empirical research shows a strong correlation between near term stock movements and trends in earnings estimate revisions Investors can track such revisions by themselves or rely on a tried and tested rating tool like the Zacks Rank which has an impressive track record of harnessing the power of earnings estimate revisions
Ahead of this earnings release the estimate revisions trend for Bristol Myers was favorable While the magnitude and direction of estimate revisions could change following the company s just released earnings report the current status translates into a Zacks Rank 2 Buy for the stock So the shares are expected to outperform the market in the near future You can see the complete list of today s Zacks 1 Rank Strong Buy stocks here
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead The current consensus EPS estimate is 0 94 on 6 01 billion in revenues for the coming quarter and 4 28 on 24 02 billion in revenues for the current fiscal year
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well In terms of the Zacks Industry Rank Large Cap Pharmaceuticals is currently in the top 39 of the 250 plus Zacks industries Our research shows that the top 50 of the Zacks ranked industries outperform the bottom 50 by a factor of more than 2 to 1 |
BMY | Bristol Myers BMY Hits Fresh High Is There Still Room To Run | Shares of Bristol Myers Squibb BMY have been strong performers lately with the stock up 15 8 over the past month The stock hit a new 52 week high of 58 22 in the previous session Bristol Myers Squibb has gained 10 4 since the start of the year compared to the 3 2 move for the Zacks Medical sector and the 8 return for the Zacks Large Cap Pharmaceuticals industry
What s Driving the Outperformance
The stock has an impressive record of positive earnings surprises as it hasn t missed our earnings consensus estimate in any of the last four quarters In its last earnings report on October 31 2019 Bristol Myers reported EPS of 1 17 versus consensus estimate of 1 06 while it beat the consensus revenue estimate by 3 54
For the current fiscal year Bristol Myers is expected to post earnings of 4 29 per share on 24 02 billion in revenues This represents a 7 79 change in EPS on a 6 46 change in revenues For the next fiscal year the company is expected to earn 5 18 per share on 40 47 billion in revenues This represents a year over year change of 20 66 and 68 51 respectively
Valuation Metrics
Bristol Myers may be at a 52 week high right now but what might the future hold for the stock A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself
On this front we can look at the Zacks Style Scores as they provide investors with an additional way to sort through stocks beyond looking at the Zacks Rank of a security These styles are represented by grades running from A to F in the categories of Value Growth and Momentum while there is a combined VGM Score as well The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style
Bristol Myers has a Value Score of B The stock s Growth and Momentum Scores are B and D respectively giving the company a VGM Score of B
In terms of its value breakdown the stock currently trades at 13 4X current fiscal year EPS estimates On a trailing cash flow basis the stock currently trades at 13 1X versus its peer group s average of 11 6X Additionally the stock has a PEG ratio of 1 34 This isn t enough to put the company in the top echelon of all stocks we cover from a value perspective
Zacks Rank
We also need to look at the Zacks Rank for the stock as this supersedes any trend on the style score front Fortunately Bristol Myers currently has a Zacks Rank of 2 Buy thanks to rising earnings estimates
Since we recommend that investors select stocks carrying Zacks Rank of 1 Strong Buy or 2 Buy and Style Scores of A or B it looks as if Bristol Myers meets the list of requirements Thus it seems as though Bristol Myers shares could have a bit more room to run in the near term
How Does Bristol Myers Stack Up to the Competition
Shares of Bristol Myers have been moving higher and the company still appears to be a decent choice but what about the rest of the industry Some of its industry peers are also impressive including GlaxoSmithKline plc GSK AbbVie ABBV and Jazz Pharmaceuticals JAZZ all of which currently have a Zacks Rank of at least 2 and a VGM Score of at least B making them well rounded choices
The Zacks Industry Rank is in the top 37 of all the industries we have in our universe so it looks like there are some nice tailwinds for Bristol Myers even beyond its own solid fundamental situation |
BMY | Simple Secrets Anyone Can Use To Reach Early Retirement November 01 2019 | Accomplishing the financial cushion to retire early is a fantasy for most Bringing the fantasy to reality is not as difficult as it sounds The key is straightforward Save significantly more every month Sounds simple correct One moment
Usually advisors advise 15 to 20 of total income saved every month as an objective yet in the event that you want to retire earlier you likely need to tighten that number up to 40 or half of your pay Not a discipline easily practiced when you review or consider that a substantial segment of your paycheck goes to basic non negotiable lifestyle needs But if you are willing to make some serious lifestyle adjustments and trade offs it s achievable
A relatively new movement called Financial Independence Retire Early FIRE has been developed around this sacrifice and over save now to retire early concept FIRE followers develop strict savings programs up to 75 of income and make associated sacrifices like living in small apartments walking to work every day restrictive diets and so on This path may be too restrictive for many but the mindset offers some takeaways that might be worth considering
The first point is to adhere to the key principles of long term investing including developing a diversified portfolio that includes stocks with various styles sizes sectors and regions
To speed up the retirement investment cycle you can build a portfolio structured with more risk and the potential for higher returns It should in any case be adequately diversified to safeguard against sharper than normal market downturns that can be hard to recuperate from and that can ruin any opportunity to achieve your early retirement goal There are various strategies to diversify a portfolio and how you do so should be guided by your age your risk appetite your growth and income needs and your long term objectives
After accelerating your savings and setting up an ongoing plan invest your savings into your portfolio at the earliest opportunity Try not to attempt to time the market Stay put and let the compounding characteristics of the markets do its work to help grow your retirement wealth exponentially over time
Astute investors pick retirement growth stocks with low beta strong earnings estimates positive sales growth and expected future growth
The Zacks Rank routinely recognizes lower risk growth retirement portfolio picks and here are a few that may be worth considering Sandy Spring Bancorp SASR AT T T and Bristol Myers Squibb BMY These growth stocks have strong Zacks Ranks and a beta of 1 or lower with earnings and sales growth of at least 5 over the past 5 years
Do You Know the Top 9 Retirement Investing Mistakes
Whether you re planning to retire early or not don t let investing mistakes derail your plans
If you have 500 000 or more to invest and want to learn more click the link to download our free report 9 Retirement Mistakes that will Ruin Your Retirement This report will help you steer clear of the most common mistakes like trying to time the market lack of diversification in your portfolio and many more Get Your FREE Guide Now |
HAL | Stock Market Outlook January 6 2015 | NEW As part of the ongoing process to offer new and up to date information regarding seasonal and technical investing we are adding a section to the daily reports that details the stocks that are entering their period of seasonal strength based on average historical start dates Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities As always the use of technical and fundamental analysis is encouraged in order to fine tune entry and exit points to average seasonal trends
Stocks Entering Period of Seasonal Strength Today
Jack in the Box Inc NASDAQ JACK Seasonal Chart
Halliburton Company NYSE HAL Seasonal Chart
The Markets
Stocks plunged on Monday as the price of oil took another leg lower weighing once again on the energy sector The price of Oil is now down by almost 54 since hitting its 2014 high of 107 68 a free fall that is becoming reminiscent of the 2009 swoon The 2009 low is the next significant point of reference providing the best opportunity for a rebound attempt Prior to the strong rise in the commodity from 2004 through to 2008 multi year resistance was evident around 40 That previous level of resistance turned into support during the 2008 2009 collapse This level is expected to act as support once again As prices nears 40 negative bets on the commodity are likely to be shed and speculators will become willing to enter providing momentum for a long overdue bounce Recall that the period of seasonal strength for the commodity is around the corner gaining on average from the end of February through to May as supply and demand imbalances shift in favour of higher prices through the spring The upcoming trade in Oil and the energy sector continues to hold appeal assuming support is maintained over the weeks ahead
The longer term prospect for the commodity market however remains questionable The US Dollar Index continues to climb following the bottoming pattern charted over the last many years With the breakout in the currency benchmark above resistance at 89 confirmation of a positive long term trend has been provided the impact of which is certain to weigh on commodities priced in the domestic currency During the late 90 s the last time the US Dollar realized a sustained multi year rise commodities were the weakest performing asset class weighing upon stocks in the materials sector A trend of underperforming returns amongst material stocks is already evident losses on an absolute basis may now be following Seasonally the US Dollar Index tends to rise through the first two months of the new year a threat to material stocks over the short term
Sentiment on Monday as gauged by the put call ratio ended bearish at 1 23
Seasonal charts of companies reporting earnings today
S P 500 Index
TSE Composite
Horizons Seasonal Rotation ETF TO HAC
Closing Market Value 14 89 down 1 97
Closing NAV Unit 14 93 down 1 77
Performance
performance calculated on Closing NAV Unit as provided by custodian |
C | European shares extend rally US jobs data eyed | FTSEurofirst 300 rises 0 3 pct
Banks gain as Greece worries recede
RWE lower on capital raising worries
By Brian Gorman
LONDON July 8 Reuters European shares rose on Friday
on track for a ninth gain in 10 sessions boosted by Wall Street
and Asia moving higher and ahead of key U S labour data that
may confirm the strength of the recovery in the world s biggest
economy
At 0842 GMT the FTSEurofirst 300 index of top
European shares was up 0 3 percent at 1 126 12 points after
rising 0 4 percent in the previous session to its highest close
in five weeks buoyed by a report showing strong U S job
private sector jobs creation
Stocks rose virtually across the board albeit modestly
with the heavyweight banking sector among the gainers as worries
about Greece s debt crisis receded The STOXX Europe 600 Banking
Index rose 0 1 percent though it is still down 6
percent in 2011
It s all about the non farm payrolls The market will be
expecting a higher number after the ADP report Philip
Isherwood European equities strategist at Evolution Securities
said
It seems to me the soft patch that people thought would
turn into recession is overstated
A Reuters survey conducted last week found that economists
were looking for an increase of 90 000 nonfarm jobs after May s
meagre 54 000 gain But economists now believe employment
probably rose anywhere between 125 000 and 175 000
The data is due at 1230 GMT
The pan European index is in the middle of a range defined
by the 2011 high it hit in mid February 1 190 51 points and
the low of mid March 1066 62
Isherwood said it was more likely to break out of the range
on the upside
He said the forthcoming second quarter earnings season would
show top line beats as well as earnings beats
The pan European index has gained 5 percent in the last two
weeks as worries about Greece s debt crisis have abated and
U S economic indicators have picked up But strategists say
shares are still cheap
Equity valuations on Thomson Reuters Datastream showed the
STOXX Europe 600 carrying a one year forward
price to earnings of about 10 against a 10 year average of
13 4
After a flat first half for European shares with returns of
just 2 percent including dividends Citigroup believes the
second half will be better
We target double digit returns by end 2011 Citi
strategists said in a note saying that earnings were OK and
valuations were attractive
Citi economists forecast an uneven global recovery and
reducing macro uncertainty in the second half
Among individual shares German utility RWE fell
2 8 percent on news that the company is considering issuing new
capital to maintain its credit rating
The IMF executive board on Friday is expected to approve
the disbursement of just over 3 billion euros for Greece in
time to help the country pay debts falling due this month
Editing by Hans Juergen Peters
For rolling updates on what is moving European shares please
click on
For pan Europeanmarket data and news click on codes in
brackets European Equities speed
guide FTSEurofirst 300
index STOXX Europe
index Top 10 STOXX
sectors Top 10
EUROSTOXX sectors Top 10
Eurofirst 300 sectors Top 25
European pct gainers Top 25
European pct losers
Main stock markets Dow Jones Wall
Street report Nikkei 225 Tokyo
report FTSE 100 London
report Xetra DAX
CAC 40 World
Indices 0 INDEX Reuters
survey of world bourse outlook Western
European IPO diary European
Asset Allocation
Reuters News at a Glance Equities
Main currency report
Keywords MARKETS EUROPE STOCKS |
C | Crude oil futures Weekly review July 4 8 | Investing com Last week saw crude oil prices pull back from a three week high on Friday after weak employment data added to concerns over the U S economic outlook and weighed on demand expectations from the world s largest oil consumer On the New York Mercantile Exchange light sweet crude futures for delivery in August traded at USD96 52 a barrel by close of trade on Friday gaining 1 5 over the week The August contract rose to USD99 40 on Thursday the highest price since June 15 after two better than expected U S employment readings boosted expectations for a strong payrolls report on Friday But prices slumped nearly 2 2 after the U S Department of Labor said that nonfarm payrolls rose by a disappointing 18 000 in June significantly below expectations for an increase of 89 000 as employers hired the fewest workers in nine months The previous month s figure was revised down to a gain of 22 000 from a previously reported 54 000 The June unemployment rate rose unexpectedly from 9 1 to 9 2 the highest level in six months Oil traders have been paying close attention to readings on U S employment levels for signs that people are returning to work thus driving more and using more energy Meanwhile the U S Energy Information Administration said in its weekly report on Thursday that U S crude oil inventories fell by 0 9 million barrels in the week ended July 1 short of expectations for a 2 5 million barrel decline Total U S motor gasoline inventories declined by 0 6 million barrels confounding expectations for a 0 8 million barrel increase Elsewhere on the ICE Futures Exchange Brent oil futures for August delivery traded at USD117 61 a barrel by close of trade on Friday the highest price since June 14 The Brent contract rallied 5 4 on the week and was up USD21 09 on its U S counterpart the widest spread between the two contracts since June 15 when the premium reached a record USD23 34 Global financial service provider Citigroup said on Thursday that Brent s premium to U S crude may widen to at least USD40 a barrel between now and the middle of 2012 citing a disruption to supplies in the North Sea |
C | PRECIOUS Gold hovers below record Europe woes US debt talk aid | SINGAPORE July 15 Reuters Gold hovered below its record
high on Friday after a nine session rally pushed prices up as
much as 7 percent as the euro zone debt crisis and
uncertainties around the U S debt talks continued to support
sentiment
FUNDAMENTALS
Spot gold edged down 0 1 percent to 1 585 09 an
ounce by 0047 GMT after setting a record high at 1 594 16 on
Thursday
U S gold lost 0 2 percent to 1 586
Spot gold was on course for a 2 7 percent weekly gain a
second consecutive week of rise
U S Federal Reserve Chairman Ben Bernanke dampened hopes
on additional stimulus in the near term shaving off some
bullish sentiment in commodities overall But the intensifying
concerns about U S debt talks are likely to drive investors to
seek safe haven in gold as the Aug 2 deadline approaches
The U S Treasury has warned that it will run out of money
to pay the country s bills after Aug 2 if the 14 3 trillion
borrowing limit is not raised Failure to seal a deal by then
could cause turmoil in global financial markets and plunge the
U S into another recession
Waning confidence in the strength of global economic
recovery and persistent concerns over euro zone debt levels
since January have prompted some leading analysts to lift their
2012 gold price forecasts a Reuters poll showed on Thursday
Italy had to pay the highest interest rates in three years
to sell almost 5 billion euros of long term debt on Thursday
highlighting the growing pressure on the public finances of the
euro zone s third largest economy
Amid growing worries about contagion of debt crisis the
European Banking Authority will publish results of its health
check of 90 banks across the European Union later in the day
Spot silver gained 0 4 percent to 38 34 easing
from a two month high of 39 34 hit in the previous session It
was on course for a 4 6 percent weekly rise
U S silver lost 0 8 percent to 38 39
For the top stories on metals and other news click
or
MARKET NEWS
U S stocks fell on Thursday as Bernanke backed off hints
additional near term stimulus could be on the way removing a
possible catalyst from a market already facing plenty of
obstacles
The dollar held its breath in thin Asian trade on Friday
after Standard and Poor s warned there was a one in two chance
it could cut the U S credit ratings if no deal was reached on
raising the government s debt ceiling
DATA EVENTS
0900 EZ Eurostat trade nsa EUR May
1130 India M3 Money Supply
1200 U S Citigroup earnings Q2
1230 U S Consumer Price Index Jun
1230 U S Real earnings Jun
1315 U S Industrial prod Capacity use Jun
1355 U S Reuters UMich sentiment Jul P
1930 U S CFTC trader commitments futures Weekly 0 1CFTC00
1930 U S CFTC trader commitments fut opnsWeekly 0 3CFTC00
PRICES
Precious metals prices 0047 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1585 09 1 66 0 10 11 67
Spot Silver 38 34 0 16 0 42 24 24
Spot Platinum 1761 75 0 95 0 05 0 33
Spot Palladium 776 72 3 99 0 52 2 85
TOCOM Gold 4033 00 3 00 0 07 8 15 41938
TOCOM Platinum 4535 00 3 00 0 07 3 43 2998
TOCOM Silver 97 20 0 80 0 82 20 00 589
TOCOM Palladium 1988 00 13 00 0 65 5 20 83
COMEX GOLD AUG1 1586 00 3 30 0 21 11 58 3823
COMEX SILVER SEP1 38 39 0 30 0 79 24 08 1334
Euro Dollar 1 4162
Dollar Yen 79 04
TOCOM prices in yen per gram Spot prices in per ounce
COMEX gold and silver contracts show the most active months
Reporting by Rujun Shen Editing by Himani Sarkar |
C | UPDATE 9 Oil rises on lower Canadian supply equities | TransCanada restricts Keystone August supplies
Citi Google earnings give early lift
US consumer sentiment lowest since March 2009
Coming up CFTC positions data 3 30 p m EDT Friday
Recasts updates prices to settlement market activity
By Gene Ramos and Matthew Robinson
NEW YORK July 15 Reuters Oil rose on Friday on lower
supplies for a Canadian export pipeline and Wall Street s
advance on favorable results of a stress test on European
banks which offset a rash of weak U S economic data
Oil got an early lift after Google and Citigroup reported
earnings Crude also got support from short covering ahead of
the weekend plus trading of options on the New York Mercantile
Exchange market players said
There is pre weekend short covering going on as nobody
wants to be short at this time with so many things going on
said Phil Flynn analyst with PFBEST Research in Chicago
Wall Street s early support to the oil market was partly
dented after data showed U S consumer confidence plummeted in
early July to its lowest level in more than two years and
factory output in New York State stalled in June The data
dimmed hopes for a quick economic rebound in the second half
ID nN1E76E0DF
Stalled negotiations between President Barack Obama and
Republican lawmakers to avoid a U S government default also
prompted concern in financial markets ID nN1E76D26R
Later the euro rose against the U S dollar after the
number of European banks that failed the stress test was within
expectations ID nBANKTESTS
In late trading the greenback was down 0 12 percent
against a basket of currencies Weakness of the dollar
usually increases commodities investors appetite for risk
U S crude for August delivery settled at 97 24 a
barrel gaining 1 55 and rising for a third straight week
The September contract closed at 97 60 up 1 49 or
1 55 percent
In London ICE Brent for September delivery the
new front month closed at 117 26 up 1 For the week it
posted a 1 07 loss after gaining two consecutive weeks
The premium of Brent to U S crude futures
narrowed to 19 66 from more than 22 on Thursday on news
that TransCanada Corp will cut nominated crude volumes on its
Keystone pipeline to the United States from Canada by 20
percent next month due to maintenance ID nN1E76E0F5
The day s volumes were thin with U S crude trading
500 7300 contracts as of 3 25 p m EDT 1925 GMT nearly 28
percent below the 30 day average In London Brent crude traded
281 006 contracts 49 percent below the 30 day average
according to Reuters data
MORE IEA INJECTIONS U S STIMULUS
The market also weighed the possibility of a second round
of releases by members of the Paris based International Energy
Agency of emergency oil reserves after an initial injection of
60 million barrels annnounced on June 23
However Germany and Italy were likely to oppose a second
infusion and that could block a further release as full backing
of all 28 IEA members is needed for such a a decision to stick
ID nL6E7IF0VL
Oil prices rose on Wednesday after U S Federal Reserve
Chairman told a U S House congressional panel that the central
gbank stood ready to ease monetary policies if the economy
weakens further
But on Thursday prices fell back after Bernanke in a
separate testimony to a Senate panel doused expectations of a
new round of easing dubbed QE3 saying the Fed was not yet
ready to do so and citing recent inflationary pressures
With Friday s crop of unfavorable economic data however
some market pundits have raised the argument that those bleak
reports precisely could be the fodder for QE3
In my view the disappointing economic data the Empire
Manufacturing Index and Consumer Confidence would seem to
support and give the Federal Reserve cover for another round of
quantitative easing and its commoditiy inflation effects said
John Kilduff partner at Again Capital LLC in New York
Additional reporting by Claire Milhench and Ikuko Kurahone in
London Alejandro Barbajosa in Singapore Editing by David
Gregorio |
C | Weekly Outlook For The Dollar Index October 30 2012 | DAILY STRUCTURE30th October I remain bearish and actually feel we are very close to the Wave a high that should hold below the 41 4 50 retracement at 80 37 74 with a focus around 80 47 Once complete we should then see losses in a new Wave a that I suspect will approach and perhaps marginally break the prior Wave iv low at 78 10 From there a correction in Wave b and then a final Wave c lower that I ll have to judge as we approach Only a break back above the 81 20 pivot resistance would put the downside under threat and could resurrect the uptrend INTRADAY STRUCTURE30th October It appears we had seen an expanded flat in a daily Wave b to 78 93 and from there we are towards the final stages of a Wave c and actually in the Wave c of Wave v The 58 6 projection in Wave v is at 80 41 and 66 7 at 80 51 also note the 85 4 at 80 74 These match the 58 6 50 retracement in daily Wave x and thus we should find a high in this broad area I suspect the 80 41 50 area to allow the larger decline to resume First drop should be into the span of Wave b of Wave v and second to around the Wave iv potentially forming the Wave i of a new Wave a lower |
JPM | Uniqlo Sales In US Decline On Relatively Low Recognition | By
Losses at Uniqlo and J Brand stores in the U S have prompted Japan s Fast Retailing Co to lower its profit forecast for this fiscal year Bloomberg analysts had estimated the company based in Yamaguchi Japan would see net income of 141 6 billion yen 1 1 billion
But income will probably rise 4 5 percent to 115 billion yen 960 million in the fiscal year ending August 2016 the company announced in a statement Thursday Company leaders blamed the forecast on relatively low recognition of the Uniqlo brand in the U S and sustained losses at its American stores
Tadashi Yanai the billionaire chairman of Fast Retailing set a goal for Asia s biggest clothing company to rake in sales of 5 trillion yen by 2020 But that goal has been dogged by Uniqlo and J Brand operation losses in the U S and by price increases in its Japan market because of a weaker yen
Last year s result missed the market consensus by a large degree Dairo Murata an analyst at JPMorgan NYSE JPM Securities Japan Co told Bloomberg News That s a negative surprise and lowered the base for this year s projection
In the fiscal year that ended last August operating profit and net income lagged behind analyst projections But Yanai said the company would move ahead with plans to open 100 stores in the Chinese market bringing the total number of worldwide outlets to 3 173 by the end of August 2016
Uniqlo sales in mainland China Hong Kong and Taiwan expanded 46 percent according to Bloomberg News Fast Retailing called it a standout development despite widening losses at Uniqlo stores in the U S
Price increases on products in Japan are necessary Yanai added We can t avoid minimum price increases for our products to maintain quality and Japanese consumers are in money saving mode the chairman said Thursday Consumption is far from strong but rather stagnant or even shrinking |
BMY | Bristol Myers Squibb BMY Expected To Beat Earnings Estimates What To Know Ahead Of Q3 Release | Bristol Myers Squibb BMY is expected to deliver a year over year decline in earnings on higher revenues when it reports results for the quarter ended September 2019 This widely known consensus outlook gives a good sense of the company s earnings picture but how the actual results compare to these estimates is a powerful factor that could impact its near term stock price
The earnings report which is expected to be released on October 31 2019 might help the stock move higher if these key numbers are better than expectations On the other hand if they miss the stock may move lower
While management s discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations it s worth having a handicapping insight into the odds of a positive EPS surprise
Zacks Consensus Estimate
This biopharmaceutical company is expected to post quarterly earnings of 1 06 per share in its upcoming report which represents a year over year change of 2 8
Revenues are expected to be 5 80 billion up 2 from the year ago quarter
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0 18 higher over the last 30 days to the current level This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change
Price Consensus and EPS Surprise
Earnings Whisper
Estimate revisions ahead of a company s earnings release offer clues to the business conditions for the period whose results are coming out This insight is at the core of our proprietary surprise prediction model the Zacks Earnings ESP Expected Surprise Prediction
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate The idea here is that analysts revising their estimates right before an earnings release have the latest information which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier
Thus a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate However the model s predictive power is significant for positive ESP readings only
A positive Earnings ESP is a strong predictor of an earnings beat particularly when combined with a Zacks Rank 1 Strong Buy 2 Buy or 3 Hold Our research shows that stocks with this combination produce a positive surprise nearly 70 of the time and a solid Zacks Rank actually increases the predictive power of Earnings ESP
Please note that a negative Earnings ESP reading is not indicative of an earnings miss Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and or Zacks Rank of 4 Sell or 5 Strong Sell
How Have the Numbers Shaped Up for Bristol Myers
For Bristol Myers the Most Accurate Estimate is higher than the Zacks Consensus Estimate suggesting that analysts have recently become bullish on the company s earnings prospects This has resulted in an Earnings ESP of 0 38
On the other hand the stock currently carries a Zacks Rank of 3
So this combination indicates that Bristol Myers will most likely beat the consensus EPS estimate
Does Earnings Surprise History Hold Any Clue
While calculating estimates for a company s future earnings analysts often consider to what extent it has been able to match past consensus estimates So it s worth taking a look at the surprise history for gauging its influence on the upcoming number
For the last reported quarter it was expected that Bristol Myers would post earnings of 1 06 per share when it actually produced earnings of 1 18 delivering a surprise of 11 32
Over the last four quarters the company has beaten consensus EPS estimates four times
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors Similarly unforeseen catalysts help a number of stocks gain despite an earnings miss
That said betting on stocks that are expected to beat earnings expectations does increase the odds of success This is why it s worth checking a company s Earnings ESP and Zacks Rank ahead of its quarterly release Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they ve reported
Bristol Myers appears a compelling earnings beat candidate However investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release |
BMY | The Extreme Risks Of Trading Your Own Retirement Assets October 25 2019 | You have a substantial retirement portfolio You re an accomplished investor You ve done truly well selecting stocks You probably already own a couple of Zacks Top Retirement stock picks like
Bristol Myers Squibb BMY First Financial Corp THFF and Lamar Advertising LAMR
If this sounds like you then here s a question With your background and skills should you manage your own retirement investments
It could be a good idea that is if you are one of the very few investors who understands your own risk tolerance and can keep your emotions in check during chaotic market swings However if you re like the rest of us there are likely more prudent ways to reach your retirement investing goals
That s because the risk reward scenario and investing approach is completely different for long term wealth building and active stock trading
Diversification vs Stock Picking
While stock picking can potentially result in outsized returns its outsized concentrated risk can pose significant hazards for retirement investors
A study done by Hendrik Bessembinder of equity markets spanning nine decades revealed that only 4 of the best performing U S stocks produced all the market s increases The rest were flat the gains of the following 38 were offset by the losses of the bottom 58
For even the most talented stock pickers the odds for long term success are slim
Is it Possible to Invest Rationally
Investors think they can make rational decisions but research shows that the opposite is often true A recent DALBAR study tracked investors from 1986 to 2015 and found that the average investor substantially underperformed compared to the S P 500 Over 30 years the S P 500 returned 10 35 but the average investor return was just 3 66
Importantly this period included the 1987 crash and big bear markets in 2000 and 2008 but also the bull market of the 1990s
An important takeaway of this study is that investors seem to underperform because they try to time volatile markets and irrational emotional responses tend to these investing mistakes
Curiously even experienced traders tend to underperform since they can t resist the emotional urge to make impulsive investment choices They might be overly self assured and miscalculate risk get attached to a price target or perceive a pattern that does not exist This behavioral fallacy over the long term can be disastrous with potential underperformance of a huge number of dollars disrupting your retirement
The Key Takeaway for Retirement Investors
Your retirement portfolio should be managed with a strategy of performance over decades not days weeks or quarters Most self directed investors tend to fall short when it comes to long term results
Does that mean you should give up trading Not necessarily One solution is to take 10 of your investable assets and trade to generate alpha and seek outsized returns
But the bulk of your wealth those assets earmarked for retirement should be invested using a more measured conservative risk management approach to generate steady compounded returns so you can safely reach your retirement goals
Did you know that one in six people retire a multi millionaire
Read our just released report 7 Things You Can Do Now to Retire a Multi Millionaire This report can help you maintain and increase assets heading into retirement while avoiding costly mistakes Click here for a free report |
BMY | Should You Buy Bristol Myers BMY Ahead Of Earnings | Investors are always looking for stocks that are poised to beat at earnings season and Bristol Myers Squibb Company NYSE BMY may be one such company The firm has earnings coming up pretty soon and events are shaping up quite nicely for their report That is because Bristol Myers is seeing favorable earnings estimate revision activity as of late which is generally a precursor to an earnings beat After all analysts raising estimates right before earnings with the most up to date information possible is a pretty good indicator of some favorable trends underneath the surface for BMY in this report In fact the Most Accurate Estimate for the current quarter is currently higher than the broader Zacks Consensus Estimate of 1 06 per share This suggests that analysts have very recently bumped up their estimates for BMY giving the stock a Zacks Earnings ESP of 0 38 heading into earnings season Bristol Myers Squibb Company Price and EPS Surprise Why is this Important A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises and outperforming the market Our recent 10 year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank 3 Hold or better show a positive surprise nearly 70 of the time and have returned over 28 on average in annual returns see more Given that BMY has a Zacks Rank 3 and an ESP in positive territory investors might want to consider this stock ahead of earnings You can see Clearly recent earnings estimate revisions suggest that good things are ahead for Bristol Myers and that a beat might be in the cards for the upcoming report Today s Best Stocks from ZacksWould you like to see the updated picks from our best market beating strategies From 2017 through 2018 while the S P 500 gained 15 8 five of our screens returned 38 0 61 3 61 6 68 1 and 98 3 This outperformance has not just been a recent phenomenon From 2000 2018 while the S P averaged 4 8 per year our top strategies averaged up to 56 2 per year |
BMY | All You Need To Know About Bristol Myers BMY Rating Upgrade To Buy | Bristol Myers Squibb BMY could be a solid choice for investors given its recent upgrade to a Zacks Rank 2 Buy This rating change essentially reflects an upward trend in earnings estimates one of the most powerful forces impacting stock prices
A company s changing earnings picture is at the core of the Zacks rating The system tracks the Zacks Consensus Estimate the consensus measure of EPS estimates from the sell side analysts covering the stock for the current and following years
The power of a changing earnings picture in determining near term stock price movements makes the Zacks rating system highly useful for individual investors since it can be difficult to make decisions based on rating upgrades by Wall Street analysts These are mostly driven by subjective factors that are hard to see and measure in real time
As such the Zacks rating upgrade for Bristol Myers is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price
Most Powerful Force Impacting Stock Prices
The change in a company s future earnings potential as reflected in earnings estimate revisions and the near term price movement of its stock are proven to be strongly correlated That s partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company s shares An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock and institutional investors typically buy or sell it Their bulk investment action then leads to price movement for the stock
Fundamentally speaking rising earnings estimates and the consequent rating upgrade for Bristol Myers imply an improvement in the company s underlying business Investors should show their appreciation for this improving business trend by pushing the stock higher
Harnessing the Power of Earnings Estimate Revisions
Empirical research shows a strong correlation between trends in earnings estimate revisions and near term stock movements so it could be truly rewarding if such revisions are tracked for making an investment decision Here is where the tried and tested Zacks Rank stock rating system plays an important role as it effectively harnesses the power of earnings estimate revisions
The Zacks Rank stock rating system which uses four factors related to earnings estimates to classify stocks into five groups ranging from Zacks Rank 1 Strong Buy to Zacks Rank 5 Strong Sell has an impressive externally audited track record with Zacks Rank 1 stocks generating an average annual return of 25 since 1988 You can see the complete list of today s Zacks 1 Rank Strong Buy stocks here
Earnings Estimate Revisions for Bristol Myers
For the fiscal year ending December 2019 this biopharmaceutical company is expected to earn 4 28 per share which is a change of 7 5 from the year ago reported number
Analysts have been steadily raising their estimates for Bristol Myers Over the past three months the Zacks Consensus Estimate for the company has increased 0 5
Bottom Line
Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations the Zacks rating system maintains an equal proportion of buy and sell ratings for its entire universe of more than 4000 stocks at any point in time Irrespective of market conditions only the top 5 of the Zacks covered stocks get a Strong Buy rating and the next 15 get a Buy rating So the placement of a stock in the top 20 of the Zacks covered stocks indicates its superior earnings estimate revision feature making it a solid candidate for producing market beating returns in the near term
You can learn more about the Zacks Rank here
The upgrade of Bristol Myers to a Zacks Rank 2 positions it in the top 20 of the Zacks covered stocks in terms of estimate revisions implying that the stock might move higher in the near term |
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.