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AAPL Stock Price Today: Apple Stock May Not Be as Cheap as It Looks

2012-02-18T05:46:00.000-08:00

AAPL Stock Price Today: Apple Stock May Not Be as Cheap as It Looks

Throughout the extraordinary surge in Apple Inc. (AAPL)’s share price, a persistent question has lingered: Why is the stock still so cheap? One overlooked answer may be that Apple’s accounting isn’t as conservative as it used to be.

After topping $500 a share this week, the iPhone and iPad maker now has a $468 billion market capitalization. Yet Apple trades for only 14.3 times its earnings for the previous four quarters -- about the same as the Standard & Poor’s 500 Index’s price-earnings ratio -- in spite of growth that’s far above average. Revenue last quarter rose 73 percent to $46.3 billion, while earnings more than doubled to $13.1 billion.

Many theories have been floated for why such a rapidly expanding company with such loyal customers would trade for so little. Perhaps investors believe Apple will cling to its $97.6 billion hoard of cash and marketable securities, rather than pay a fat dividend. Others have suggested a lack of confidence about the future. It’s a consumer-electronics company, after all, and competition is brutal.

While each of those points has merit, here’s an explanation that hasn’t gotten enough attention: Thanks to an accounting- rule change for which it lobbied, Apple gets to book revenue from sales of bundled products such as iPhones -- which include hardware, software, services and upgrade rights -- more quickly than it used to. In short, one reason Apple’s earnings have been so high is accounting inflation, and the market realizes this.

Restated Numbers

The easiest way to see the rule change’s impact is to look back at the two sets of numbers Apple reported for fiscal 2009. Originally, the company said it had $5.7 billion of net income for the year on $36.5 billion of revenue. Then in January 2010 Apple retroactively adopted the new accounting principles and restated its previous numbers. The restatement boosted Apple’s fiscal 2009 net income 44 percent to $8.2 billion. Revenue was revised to $42.9 billion, 17 percent higher than originally reported.

Nothing changed economically, of course. Only the accounting did. On the surface, though, Apple’s valuation looked cheaper under the new reporting regime than under the old one.

On Dec. 31, 2009, for instance, Apple had a market capitalization of about $191 billion. Using the fiscal 2009 earnings that Apple initially reported, its price-earnings ratio that day was about 33. Using its restated numbers, the ratio would have been about 23. My guess is a similar effect is occurring today: Had it not been for the rule change, Apple’s P/E ratio would be higher, because the “E” would be lower.

“It would appear that the market continues to consider a significant component of Apple’s revenues and gross profit to be presently unearned and not deserving of a normal market multiple,” said Charles Mulford, an accounting professor and director of the Financial Reporting and Analysis Lab at Georgia Institute of Technology in Atlanta.

Apple was one of a handful of companies that lobbied the Financial Accounting Standards Board for the new rules in 2009. The impact for Apple seems to have been greater than for most others, probably because of the nature of its products. Dell Inc. (DELL) said the rule switch had no material impact on its results. Microsoft Corp. (MSFT) and Oracle Corp. (ORCL) said the same. Hewlett-Packard Co. (HPQ)’s earnings got a slight boost.

The FASB rule change had two main parts. One related to so- called multiple-deliverable arrangements, while another covered software sales. When Apple sells an iPhone, for example, the hardware and software are delivered at the time of sale. Other deliverables include the rights to future software upgrades and other features.

Economic Life

The old accounting rules required Apple to defer large chunks of its revenue and recognize the amounts gradually over each product’s economic life. While the details are complicated, the gist under the new rules is that Apple is allowed to record more revenue upfront.

What’s unknowable is how much different Apple’s latest results would have looked had the FASB not amended its standards. There’s no way to tell from the company’s disclosures. Plus, Apple adopted the new accounting principles right before it introduced the iPad. An Apple spokeswoman, Kristin Huguet, didn’t return phone calls seeking comment.

Let me be clear: I’m not opining on whether Apple is overvalued or undervalued, and I’m certainly not making any predictions about its stock price. The point here is that it makes sense for Apple’s earnings multiple to have declined significantly once you consider how the company’s accounting has changed. Read More

AAPL Stock Price Today: Apple Share Price Target Raised to $570.00 by Oppenheimer Analysts (AAPL)

2012-02-18T05:40:00.000-08:00

AAPL Stock Price Today: Apple Share Price Target Raised to $570.00 by Oppenheimer Analysts (AAPL)

Analysts at Oppenheimer (NYSE: OPY) upped their price target on shares of Apple (NASDAQ: AAPL) from $510.00 to $570.00 in a research report issued to clients and investors on Friday. They currently have an “outperform” rating on the company’s shares.

Separately, analysts at Barclays Capital (NYSE: BCS) reiterated an “overweight” rating on shares of Apple in a research note to investors on Tuesday. Analysts at Jefferies Group (NYSE: JEF) reiterated a “buy” rating on shares of Apple in a research note to investors on Tuesday. Also, analysts at Canaccord Genuity raised their price target on shares of Apple from $650.00 to $665.00 in a research note to investors on Thursday, February 9th. They now have a “buy” rating on the stock.

Apple Inc. (Apple) along with its subsidiaries is engaged in designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, and sells a range of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Company’s products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and Mac OS X operating systems, iCloud, and a range of accessory, service and support offerings. It also sells and delivers digital content and applications through the iTunes Store, App Store, iBookstore, and Mac App Store.The Company sells to consumers, small and mid-sized businesses (SMB), and education, enterprise and government customers. During the year ended November 24, 2011, the Company, as part of a consortium, acquired Nortel Networks Corporation’s patent portfolio.

Shares of Apple opened at 502.21 on Friday. Apple has a one year low of $310.50 and a one year high of $526.29. The stock’s 50-day moving average is $445.9 and its 200-day moving average is $402.3. The company has a market cap of $468.2 billion and a P/E ratio of 14.29. Read More

AAPL Stock Price Today - Apple Inc. Stock Quote - DJIA S&P500 Global Dow NASDAQ Technlgy

2012-02-18T05:23:00.000-08:00

AAPL Stock Price Today - Apple Inc. Stock Quote - DJIA S&P500 Global Dow NASDAQ Technlgy

Compare to benchmark: DJIA S&P500 Global Dow NASDAQ Technlgy ... Dividend Yield: A company's dividend expressed as a percentage of its current stock ... Read More

Apple Inc. Stock Chart | AAPL Interactive Chart - Dow Jones (^DJI); NASDAQ (^IXIC); S&P 500 (^GSPC)

2012-02-18T05:15:00.000-08:00

Apple Inc. Stock Chart | AAPL Interactive Chart - Dow Jones (^DJI); NASDAQ (^IXIC); S&P 500 (^GSPC)

Chart Cursor. Track Ball; Crosshair; Off. OHLC Values. On; Off. RESET. Compare AAPL to: Dow Jones (^DJI); NASDAQ (^IXIC); S&P 500 (^GSPC). Draw. Cancel ... Read More

The Irrelevance Of The Dow Jones Industrial Average

2012-02-09T07:18:00.000-08:00

The Irrelevance Of The Dow Jones Industrial Average

Though its influence has finally waned somewhat in recent years, for over a century, the Dow Jones Industrial Average has been, and, for many, remains, synonymous with the stock market. News reports continue to proclaim “the market” is up or down, referring to this index.

Yet, the index consists of a mere 30 stocks, not particularly representative of the market, and is price-weighted- a nonsensical choice inferior to market-capitalization-weighted indexes such as the S&P 500, which, with 500 stocks is much more representative of the market as a whole.

The fine folks at Bespoke Investment Group often have fascinating insights. They recently published a fascinating article, showing what would have happened if Apple(AAPL) had been added to the index in June 2009 rather than Cisco(CSCO). This one single swap would have left the index 14% higher today, at an all time high. The fact that the selection of a single stock can lead to such a wide divergence in the index over such a short period of time should give anyone pause before paying any heed to this index.

The numbers, from Bespoke:

Even though AAPL was not chosen to replace GM, it is always fun to see what might have been. To that end, we have recalculated the performance of the DJIA to reflect how it would have done if AAPL was added to the DJIA instead of CSCO. The chart below shows the current DJIA (blue line) compared to the ‘Apple’ DJIA (red line). Currently, the DJIA is trading at a level of roughly 12,865, which is about 12.1% off its all-time high of 14,198.10 from October 2007. If AAPL was in the DJIA, though, the index would not only be significantly higher (14%), but it would also be trading at an all-time high of 14,636. Granted, you cannot go back and change the past, but we wonder if investor sentiment would be more positive if the DJIA was trading at record highs? Read More

MF Global Singapore has been ordered by the Singapore Exchange (SGX) not to take on new derivatives positions

2011-11-01T09:23:00.000-07:00

MF Global Singapore has been ordered by the Singapore Exchange (SGX) not to take on new derivatives positions. SGX also ruled that the company may only reduce existing positions.

The Monetary Authority of Singapore (MAS) also issued a statement on Monday, directing MF Global Singapore "not to take on new positions with immediate effect in respect of all its regulated activities, except for reductions or liquidations of positions."

The MAS and SGX would continue to monitor the situation closely.

Meanwhile in New York, MF Global has filed for bankruptcy, after confidence in the firm was shattered by a string of losses from European public debt holdings.

The trade in MF Global shares was earlier Monday halted on the New York Stock Exchange as the New York Federal Reserve announced that the brokerage firm was "suspended from conducting new business with the New York Fed."

In a brief statement on its website, the New York Federal Reserve said the suspension will continue until MF Global shows it is fully capable of meeting its policy requirements regarding relationships with primary dealers or until it terminates MF Global's status as a primary dealer.

MF Global is one of 22 primary dealers at the New York Fed, with four added this year. Read More

Singapore Exchange Limited (“SGX”) - MAS, SGX clamp down on MF Global

2011-11-01T09:12:00.001-07:00

Singapore Exchange Limited (“SGX”) - MAS, SGX clamp down on MF Global

The SGX added that MF Global, a clearing member, had informed the exchange that it would not enter into new securities transactions. SGX said MF Global was meeting its financial obligations to SGX's derivatives clearing house.

The New York Federal Reserve also suspended new business with MF Global yesterday amid reports that the securities firm was desperately trying to sell itself. The New York Stock Exchange halted trading in MF Global shares before the market opened.

MF Global Holdings, the holding company for the broker-dealer run by former New Jersey Governor and Goldman Sachs co-chairman Jon Corzine, filed for bankruptcy after making bets on European debt.

The Wall Street Journal , which reported that MF Global had invested US$6 billion (S$7.5 billion) in sovereign bonds issued by European countries, said Interactive Brokers would bid US$1 billion under a court-supervised auction.

The New York-based firm listed total debt of US$39.7 billion in its Chapter 11 papers filed in the United States Bankruptcy Court in Manhattan.

Affiliate MF Global Finance USA also filed, with debt of as much US$50 million. The unit's largest unsecured creditors include JPMorgan Chase Bank, as trustee for holders of US$1.2 billion in debt, and Deutsche Bank Trust, as trustee for holders of US$690 million in debt.

MF Global shares plunged 66 per cent last week. Its credit was dropped to "junk" status by several agencies, which cited concerns about the firm's exposure to European debt.

It also reported its biggest-ever quarterly loss, US$186.6 million, for the fiscal second quarter. MF Global blamed the loss on weaker-than-expected trading revenue and one-time costs.

As for the holdings in debt from countries including Belgium, Italy, Spain, Portugal and Ireland, Mr Corzine said he expected the firm to "successfully manage these exposures to what we believe will be a positive conclusion in December 2012".

Until yesterday, MF Global was a major player and among 22 companies considered financially secure enough to act as "primary dealers" for the Fed to sell US government debt. Read More

Swarch: yahoo finance singapore, bloomberg, singapore stock exchange, sti, sti index, Singapore Exchange Limited (“SGX”), MF Global Singapore Pte Limited (“MF Global”

Singapore's blue-chip Straits Times Index closed 66.42 points lower at 2,789.35

2011-11-01T09:09:00.001-07:00

Singapore's blue-chip Straits Times Index closed 66.42 points lower at 2,789.35

Singapore's share prices ended 2.33% lower on Tuesday, in line with most Asian peers.

The falls followed sharp losses on the Wall Street overnight and a worse-than-expected manufacturing activity report from China.

China's purchasing managers index fell to 50.4 in October, below the 52.2 recorded in September.

In addition, markets retreated after last week's optimism about Europe's sovereign debt crisis as doubts have surfaced over Greece's willingness to accept the European Union's bailout plan following the nation's surprise call for a referendum on the issue.

Singapore's blue-chip Straits Times Index closed 66.42 points lower at 2,789.35.

In the broader market, losers outnumbered gainers 380 to 112. Overall volume traded was 1.42 billion shares.

Among the losers, Sembcorp Marine slumped 7.8% to end at S$3.89 while Keppel Corp shed 5.2% to close at S$9.00 because of fears that uncertainties in Europe will continue to drag on global markets and dampen crude oil prices. Read More

Six stocks fell for each that rose in the index of 30 companies | Noble Group Ltd. (NOBL SP), CapitaMall Trust (CT SP), CHT Holdings Ltd. (CHT SP), Neptune Orient Lines Ltd. (NOL SP)

2011-11-01T09:03:00.001-07:00

Six stocks fell for each that rose in the index of 30 companies | Noble Group Ltd. (NOBL SP), CapitaMall Trust (CT SP), CHT Holdings Ltd. (CHT SP), Neptune Orient Lines Ltd. (NOL SP)

Singapore’s Straits Times Index dropped 2.3 percent to 2,789.35 at the close. Six stocks fell for each that rose in the index of 30 companies.

The following shares were among the most active in the market. Stock symbols are in parentheses after the company names.

Commodity suppliers: The Thomson Reuters/Jefferies CRB Index, which tracks prices of 19 commodities ranging from copper to corn, fell 1 percent in New York yesterday, extending losses for a second day.

Noble Group Ltd. (NOBL SP), a Hong Kong-based commodities supplier, sank 4.8 percent to S$1.48.

Olam International Ltd. (OLAM SP), a Singapore-based trader of agricultural commodities, decreased 3.1 percent to S$2.47.

CapitaMall Trust (CT SP), Singapore’s biggest retail property trust, tumbled 4.5 percent to S$1.79 after a discounted stock sale. The company raised S$250 million ($197 million) by selling shares at S$1.79 each in a placement.

CHT Holdings Ltd. (CHT SP), a supplier of adhesive tape, surged 90 percent to 17.1 Singapore cents. CHT said YongLe Tape Ltd. offered to buy the company out for 18 Singapore cents per share.

Neptune Orient Lines Ltd. (NOL SP), Southeast Asia’s biggest container carrier, dropped 5.3 percent to S$1.08. The company posted a third-straight quarterly loss because of falling freight rates and higher fuel costs. The shipping line said it expects to post a full year loss. Read More

STI Index: Singapore’s Straits Times Index fell 1.7 percent to 2,855.77 at the close | Otto Marine Ltd. (OTML SP), Singapore Post Ltd. (SPOST), SMRT Corp. (MRT SP), Wilmar International Ltd. (WIL SP)

2011-11-01T08:56:00.001-07:00

STI Index: Singapore’s Straits Times Index fell 1.7 percent to 2,855.77 at the close | Otto Marine Ltd. (OTML SP), Singapore Post Ltd. (SPOST), SMRT Corp. (MRT SP), Wilmar International Ltd. (WIL SP)

Singapore’s Straits Times Index fell 1.7 percent to 2,855.77 at the close, its first decline in six days. Almost four stocks dropped for each that rose in the index of 30 companies. The gauge advanced 6.8 percent this month, the most since July 2009.

The following shares were among the most active in the market. Stock symbols are in parentheses after the company names.

Otto Marine Ltd. (OTML SP) declined 3.6 percent to 13.4 Singapore cents. The shipbuilder said it expects to report a third-quarter loss because of volatility in the currency market and lower revenue from unit Reflect Geophysical Pte., which operates ships that seek oil and gas under the sea floor.

Singapore Post Ltd. (SPOST), operator of the city’s postal services, slipped 2.4 percent to S$1.025. The company said second-quarter net income declined 23 percent to S$30.6 million ($24.6 million) from a year earlier.

SMRT Corp. (MRT SP), the biggest commuter-train operator in the city-state, decreased 2.7 percent to S$1.84. The company said second-quarter net income fell 26 percent to S$34.1 million from a year earlier.

Wilmar International Ltd. (WIL SP), the world’s largest palm-oil processor, gained 1.3 percent to S$5.47. The company said it increased the size of a syndicated term loan facility announced in November to $1.5 billion from $1.3 billion Read More

Straits Times Index (STI) - Benchmark Straits Times Index (STI) has risen 8.6 per cent for the month

2011-11-01T08:50:00.001-07:00

Straits Times Index (STI) - Benchmark Straits Times Index (STI) has risen 8.6 per cent for the month

the benchmark Straits Times Index (STI) has risen 8.6 per cent for the month, while Hong Kong's Hang Seng shot up 13.8 per cent and China's Shanghai Composite Index is 4.8 per cent higher.

Last week marked the second straight week that emerging market funds registered fresh cash infusion, as investors stock up on equities in anticipation of the traditional year-end market rally. Read More

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STRAITS TIMES INDEX (^STI) : Index down 0.68 percent, support at 2,780 eyed for afternoon | Straits Times Index (STI)

2011-11-01T08:43:00.001-07:00

STRAITS TIMES INDEX (^STI) : Index down 0.68 percent, support at 2,780 eyed for afternoon | Straits Times Index (STI)

Singapore shares slipped on Tuesday, led by losses in units of shopping mall owner CapitaMall Trust , as the collapse of U.S. broker MF Global battered sentiment in Asia.

CapitaMall Trust units lost as much as 5.3 percent after it raised S$250 million through a private placement to fund upgrading works and investments on several of its shopping malls.

At 0500 GMT, the Straits Times Index (STI) was down 0.68 percent, or 19.54 points, at 2,836.23. Around 687.2 million shares worth S$583.7 million were traded, compared with the 855.5 million shares worth S$777.1 million that changed hands by the same time on Monday.

Local traders said they expect the STI to find support at 2,780 for the rest of the session.

The fallout from the collapse of MF Global rippled through global exchanges on Tuesday, as operators moved to suspend the U.S. futures broker or limit trades of its customers.

"Uncertainty over the eurozone returned just days after the EU leaders had stayed up all night to hammer out the supposed solution to the debt issues," said Jason Hughes, head of premium client management at IG Markets.

"Add to that the filing for Chapter 11 bankruptcy by MF Global and the mood around the financial markets was once again extremely hesitant and sombre."

Greek Prime Minister George Papandreou has called an unexpected referendum on a new EU bailout deal for his debt-ridden country, baffling investors and adding to uncertainty in the markets.

Meanwhile, Italian and Spanish bond yields soared, prompting the European Central Bank to buy the debt, while shares of European banks came under heavy selling pressure.

A slightly weaker-than-expected data from China's purchasing managers' index, which fell to 50.4 last month from September's 51.2 also weighed on investor confidence.

Container shipping firm Neptune Orient Lines (NOL) fell 2.6 percent to S$1.11 after the company reported a loss much wider than expected in its third quarter hurt by a drop in freight rates, and warned of a possible full year loss.

Chinese property developer Yanlord Land dropped 2.4 percent to S$1.005 by midday, as news China will maintain its property curbs for the rest of the year turned investors more cautious on the sector. Read More

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Straits Times Index : Singapore Stocks-Down by midday; China Dairy outperforms

2011-11-01T08:34:00.000-07:00

Straits Times Index : Singapore Stocks-Down by midday; China Dairy outperforms | Straits Times Index (STI)

Singapore shares fell by midday on Monday as investors booked profits after an almost 7 percent rally last week prompted by progess in Europe's debt deal, with most closely watching the plan knowing the crisis was far from over.

At 0500 GMT, the Straits Times Index (STI) was down 1.35 percent, or 39.6 points, at 2,866.12. Around 855.5 million shares worth S$777.1 million were traded, compared with 1.23 billion shares worth S$1.2 billion on Friday.

Asian shares fell and precious metals slipped as the dollar spiked to a three-month high against the yen following Japan's intervention in the currency markets.

MSCI's index of Asia Pacific shares outside Japan retreated 1.71 percent, after posting its best week in nearly three years.

"We need to consider whether the previous week's rally was really warranted. I think there was a lot of short-covering," said Carey Wong, an analyst at OCBC Investment Research.

Some of the Singapore stocks that posted heavy losses on Monday were commodities firm Noble Group , rig builder Sembcorp Marine and palm oil producer Golden Agri-Resources .

Golden Agri fell 5.9 percent by midday to S$0.64, while Sembcorp Industrise dropped 5.2 percent to S$4.23.

Shares of casino operator Genting Singapore fell as much as 3.4 percent after surging last Friday on improved sentiment about the gaming market size in the city-state following the strong third-quarter results of rival Marina Bay Sands.

"I think it's mostly profit-taking. Genting's results will be out in two weeks' time, so the market is still a little bit divided about whether they continue to lose the share in the VIP market to MBS," Wong said.

"But we continue to believe in a stronger overall market in Singapore...As long as the whole market is growing, we are not too worried," he added.

Shares of Singapore-listed China Dairy Group surged 35 percent after Fraser and Neave Ltd (F&N) said it had agreed to sell its entire 29.5 percent stake in the company for nearly three times the Friday closing price. Read More

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Morgan Stanley and Wells Fargo & Co.: S&P 500 Caps Longest Weekly Gain Since February on Europe Bets

2011-10-22T08:38:00.001-07:00

Morgan Stanley and Wells Fargo & Co.: S&P 500 Caps Longest Weekly Gain Since February on Europe Bets

Morgan Stanley and Wells Fargo & Co. added at least 2.1 percent as European lenders rallied. Alcoa Inc. and Boeing Co. rose more than 2.8 percent, pacing gains in companies most-tied to the economy. McDonald's Corp. climbed 3.7 percent after profit jumped as lower-priced items boosted U.S. store sales. Honeywell International Inc. advanced 5.8 percent as a recovery in commercial aerospace helped earnings climb 44 percent.

The S&P 500 increased 1.9 percent to 1,238.25 as of 4 p.m. New York time, the highest level since Aug. 3. The gauge rose 1.1 percent since Oct. 14, gaining for a third straight week. The Dow Jones Industrial Average climbed 267.01 points, or 2.3 percent, to 11,808.79 today, erasing its 2011 decline.

"There's a sense that Europe will come out with something that will calm down imminent fears of the crisis escalating out of control," James Paulsen, chief investment strategist at Minneapolis-based Wells Capital Management, which oversees about $360 billion, said in a telephone interview. "Markets are also digesting Federal Reserve lip service given to additional quantitative easing moves. However, it appears most investors are unsure whether additional easing is needed."

Gains accelerated after the S&P 500 climbed past 1,233.10, its intraday peak on Oct. 18 and the highest level since Aug. 4. Three rallies since the U.S. government was stripped of its AAA credit rating by S&P have stopped around 1,220, data compiled by Bloomberg show.

Burst of Trading

A burst of trading in E-Mini S&P 500 futures occurred today after the index climbed above 1,233.10, according to data compiled by Bloomberg. Volume jumped to 31,774 contracts during 10:17 a.m. New York time, the most for any minute of the day at that point.

"The path of least resistance is higher," Christopher Verrone, head of technical analysis at New York-based Strategas Research Partners, said in a phone interview. "I'm interested to see what happens in the 1,260-1,270 range. That is when we'll get more information on how durable this advance is."

France retreated in a clash with Germany over how to expand the power of Europe's bailout fund after the first meeting in a six-day marathon intended to solve the debt crisis. France's view that the fund, the European Financial Stability Facility, should get a banking license enabling it to borrow from the European Central Bank, "is not a definitive point of discussion for us," French Finance Minister Francois Baroin told reporters today in Brussels. "What matters is what works." Read More

JPMorgan Tops BofA: S&P 500 Posts Longest String of Gains Since February on Europe-Accord Bets - Bank of America stock (BAC)

2011-10-22T08:32:00.001-07:00

JPMorgan Tops BofA: S&P 500 Posts Longest String of Gains Since February on Europe-Accord Bets - Bank of America stock (BAC)

Financial shares in the S&P 500 added 3.9 percent as European finance ministers began negotiations to prevent a Greek default and shield banks. McDonald’s rose 2.7 percent, while Bank of America Corp. (BAC) and Goldman Sachs Group Inc. climbed more than 4.3 percent after their quarterly reports. PulteGroup Inc. jumped 11 percent as data showed sentiment among homebuilders improved more than forecast. El Paso Corp. (EP) soared 28 percent after Kinder Morgan Inc. agreed to buy it.

The S&P 500 climbed 1.1 percent to 1,238.25, the highest since Aug. 3, and has risen three straight weeks. It has surged 13 percent since Oct. 3, when it closed within 1 percent of a bear market, or 20 percent plunge, from its high in April. The Dow Jones Industrial Average rose a fourth straight week, gaining 164.30 points, or 1.4 percent, to 11,808.79.

“We’ve had a combination of good economic news, better news out of Europe and third-quarter corporate earnings are coming along pretty well,” Philip Orlando, the New York-based chief equity market strategist at Federated Investors Inc., said in a phone interview. His firm oversees about $355 billion.

Equities rose yesterday as European finance ministers approved a 5.8 billion euro ($8.1 billion) loan to Greece, and France retreated in a clash with Germany over expanding the bailout fund. Talks continue through Oct. 26. The S&P 500 also gained after 74 percent of companies that reported quarterly results topped the average analyst projection.

JPMorgan Tops BofA

Financial stocks rallied the most out of 10 groups in the S&P 500 this week following gains in European lenders. Bank of America, which has dropped 52 percent this year for the worst performance in the Dow, jumped 4.4 percent to $6.46. It posted third-quarter net income of $6.23 billion because of higher revenue, better credit quality and one-time gains.

JPMorgan Chase & Co. (JPM) added 4.8 percent to $33.42. It topped Bank of America as the largest U.S. bank by assets and posted the most third-quarter trading revenue among Wall Street firms that has reported results so far, leading for a fourth consecutive period.

Goldman Sachs climbed 5.5 percent, the most since November, to $102.09 as investors looked past the bank’s second quarterly loss since 1999, focusing on gains in trading revenue and prospects for a rebound in underwriting and takeovers.

Morgan Stanley (MS)

Morgan Stanley gained 12 percent, the most since July, to $17.02. The owner of the world’s largest brokerage reported profit that beat analysts’ estimates on a $3.4 billion accounting gain and higher revenue from stock trading.

McDonald’s rose 2.7 percent to a record $92.32. The world’s biggest restaurant chain reported third-quarter earnings of $1.45 a share, beating the $1.43 average analyst estimate, as lower-priced items boosted U.S. sales.

Profit for S&P 500 companies climbed 16 percent in the third quarter and will rise 18 percent to a record $99.25 for all of 2011, analyst estimates compiled by Bloomberg show.

“The earnings so far have implied that we’re not in a recession,” Ralph Shive, the South Bend, Indiana-based manager of the $1.65 billion Wasatch-Large Cap Value Fund, said in a telephone interview. “They were pretty stable and a slight positive as opposed to falling off the cliff.” Read More

U.S. Markets Mixed At Close; Dow Jones Industrial Average rose 0.32%, the S&P 500 index gained 0.46%, while the Nasdaq 100 index declined 0.45%

2011-10-22T08:22:00.001-07:00

U.S. Markets Mixed At Close; Dow Jones Industrial Average rose 0.32%, the S&P 500 index gained 0.46%, while the Nasdaq 100 index declined 0.45%

At the close of U.S. trade, the Dow Jones Industrial Average rose 0.32%, the S&P 500 index gained 0.46%, while the Nasdaq 100 index declined 0.45%.

Earlier in the day, official data showed that Manufacturing activity in the state of Philadelphia rose unexpectedly to a seasonally adjusted 8.7 last month from -17.5 in the preceding month.

Analysts had expected Philly Fed manufacturing index to fall -9.5 last month.

Meanwhile, across the Atlantic, European stock markets closed lower. France’s CAC 40 was down 2.32%; Germany’s DAX shed 2.49%; Britain’s FTSE 100 declined 1.21%; and the EURO STOXX 50 fell 2.50%. Read More

The Dow Chemical Company (NYSE:DOW)# DOW’s $5 Billion Credit Agreement

2011-10-22T08:19:00.001-07:00

The Dow Chemical Company (NYSE:DOW)# DOW’s $5 Billion Credit Agreement

The Dow Chemical Company (NYSE:DOW) entered into a $5 billion credit agreement. The revolving credit facility was arranged by Citigroup Inc. (NYSE:C) and will mature in 5 years.

As per the agreement, debt-to-capitalization may not exceed a ratio of 0.65 times to one if the outstanding debt is $500 million or more. Other covenants and default provisions are similar to those in Dow’s existing credit pact.

As of June 30, 2011, long-term debt of the company was $18.5 billion versus $20.6 billion as of December 31, 2010.

In July 2011, Dow released its second-quarter 2011 financial results. The company earned 85 cents per share in the second quarter of 2011, ahead of the Zacks Consensus Estimate of 80 cents per share as well as last year’s 54 cents per share. However, including one-time charges, the company earned 84 cents per share compared with 50 cents per share in the year-ago quarter.

Quarterly revenues jumped 17% year over year to $16.0 billion and were above the Zacks Consensus Estimate of $14.7 billion, driven by double-digit gains in all operating segments and geographic areas.

Excluding the impact of divestitures, volume grew 9% with gains in all operating segments but Coatings and Infrastructure, which was flat owing to difficult conditions in construction end-markets, and Chemicals and Energy. Volume increased in all geographic areas, led by Latin America (23%) and Asia Pacific (11%).

Excluding the impact of divestitures, price rose 19%, with double-digit increases in all geographic areas. All operating segments except Electronic and Specialty Materials (up 7%) and Health and Agricultural Sciences (up 5%) reported double-digit price gains. Price gains more than offset an increase of $1.5 billion in purchased feedstock and energy costs.

Sales in the emerging regions reached $4.9 billion, driven by Latin America, which increased more than 35% excluding the impact of divestitures. Volume in the emerging markets increased 14% excluding the impact of divestitures, with double-digit gains in Electronic and Specialty Materials, Health and Agricultural Sciences, and Plastics.

There was no financial guidance from Dow. However, Dow anticipates demand to improve further, especially in Asia, along with the global economic recovery.

The US and European markets have also started showing signs of improvement. Dow is also optimistic on major consumer markets, including electronics, coatings, automotive and packaging. However, construction markets are expected to remain weak.

Dow faces stiff competition from EI DuPont de Nemours & Co. (NYSE:DD).

Currently, Dow has a short-term (1 to 3 months) Zacks #4 Rank (Sell) and a long- term Neutral recommendation. Read More

Dow Logs 4th Weekly Gain, Positive for 2011 (dow, aapl, bac, stock market, dow jones, msft)

2011-10-22T08:13:00.001-07:00

Dow Logs 4th Weekly Gain, Positive for 2011 (dow, aapl, bac, stock market, dow jones, msft)

The Dow Jones Industrial Average jumped 267.01 points, or 2.31 percent, to finish at 11,808.79, finishing firmly in positive territory for the year.

The S&P 500 rallied 22.86 points, or 1.88 percent, to end at 1,238.25. The Nasdaq gained 38.84 points, or 1.49 percent, to close at 2,637.46. The CBOE Volatility Index, widely considered the best gauge of fear in the market, finished below 32.

For the week, the Dow rose 1.41 percent, the S&P climbed 1.12 percent, while the Nasdaq declined 1.14 percent. Among the Dow components, Travelers [TRV 57.35 2.82 (+5.17%) ] was the biggest gainer, while IBM [IBM 181.63 4.38 (+2.47%) ] slumped.

Among the key S&P sectors, financials logged the biggest gain, while techs slipped.
Major U.S. Indexes

	Last	Change	Today's % Change	1 Week % Change	YTD % Change
Dow	11808.79	267.01	2.31%	1.41%	2.00%
NASDAQ	2637.46	38.84	1.49%	-1.14%	-0.58%
S&P 500	1238.25	22.86	1.88%	1.12%	-1.54%
Russell 2000	712.42	16.01	2.30%	-0.01%	-9.09%
CBOE VIX	31.32	-3.46	-9.95%	10.91%	76.45%

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Rally lifts Dow and S&P 500 to weekly gains (aapl, bac, stock market, dow jones, msft)

2011-10-22T08:09:00.001-07:00

Rally lifts Dow and S&P 500 to weekly gains (aapl, bac, stock market, dow jones, msft)

The Dow Jones industrial average ended up 267.01 points, or 2.3 percent, at 11,808.79, closing near its highs of the session. All but two of 30 components ended higher, led by Travelers Cos. and American Express Co.

McDonald's was among the big gainers, with shares rising 3.7 percent, after the restaurant chain reported a nearly 9 percent gain in earnings, helped by a boost in sales both in the U.S. and Europe. The stock tapped an intraday high of $92.45 before closing at a record.

"Stocks are being driven by strong earnings, economic numbers that aren't awful, and hope that Europe won't be a disaster," said Matthew Tuttle, chief investment officer at Tuttle Wealth Management in Stamford, Conn.

So far in the third-quarter earnings season, 75 percent of companies have reported earnings per share above estimates. That's roughly in line with the 74 percent that beat in the past four quarters, according to FactSet.

Wall Street, however, was cool to a handful of bellwether stocks following results.

General Electric Co. shares fell 1.9 percent, leading Dow decliners, after the financial and industrial conglomerate matched but did not top Wall Street views, a first since 2008, and analysts noted a slower growth in industrial orders.

Microsoft Corp. edged up 0.4 percent after the tech company reported results largely in line with analysts' expectations.

With Friday's gains, the Dow quit a choppy 10-session stretch of sessions when it closed in a different direction from each of the prior sessions. The Dow has now closed higher for two days. The index climbed 1.4 percent for the week to log its fourth-straight week of gains -- the longest stretch since January.

The Nasdaq composite ended up 38.84 points, or 1.5 percent, at 2,637.46. It slid 1.1 percent for the week, its first down week in three.

The S&P 500 gained 22.86 points, or 1.9 percent, to 1,238.25. A 2.8 percent rally in consumer discretionary stocks led gains for all 10 industry groups as Harman International Industries and Chipotle Mexican Grill shares surged after both companies reported results.

For the week, the S&P 500 gained 1.1 percent, its third week of gains, the longest weekly winning stretch since February.

The S&P 500's financial sector ended higher Friday, extending a rally in European bank stocks as investors took some confidence from a joint statement Thursday that Germany and France were devising a comprehensive rescue plan to be discussed at the E.U. summit Sunday. Read More

Ultimate Market Recap: DJIA Up 2.3%, General Electric and Europe Take Center Stage - Trending Stocks

2011-10-22T08:05:00.000-07:00

Ultimate Market Recap: DJIA Up 2.3%, General Electric and Europe Take Center Stage - Trending Stocks

Friday Afternoon’s Trending Stocks

The markets are surging higher today to round out a positive week on Wall Street. The Dow Jones Industrial Average is up 226 points to 11,768 and the S&P 500 is up 19 points to 1,234. Here are the stocks buzzing on our trading screens today:

Verizon Communications Inc. (NYSE:VZ): Shares of Verizon Communications Inc. are trading flat today following its latest quarterly earnings release. Verizon Communications Inc. is an integrated telecommunications company that provides wire line voice and data services, wireless services, Internet services, and published directory information. The Company also provides network services for the federal government including business phone lines, data services, telecommunications equipment and payphones.
Seagate Technology PLC (NASDAQ:STX): Shares of Seagate Technology PLC are trading higher today after issuing a dominating quarterly earnings report and receiving an upgrade from analysts. Seagate Technology PLC designs, manufactures, and markets rigid disc drives for enterprise, personal computer, and consumer electronics applications.
McDonald’s Corporation (NYSE:MCD): Shares of McDonald’s Corporation are tradinghigher today after pleasing shareholders with a solid quarterly earnings report and hitting a new 52-week price high. McDonald’s Corporation operates and franchises fast-food restaurants worldwide. The Company’s franchised and company operated fast food restaurants offer a variety of low price fast foods in locations around the world.
Microsoft Corporation (NASDAQ:MSFT): Shares of Microsoft Corporation are tradingflat today after the tech giant released its latest quarterly earnings after the bell yesterday. Microsoft Corporation develops, manufactures, licenses, sells, and supports software products. The Company offers operating system software, server application software, business and consumer applications software, software development tools, and Internet and intranet software. Microsoft also develops video game consoles and digital music entertainment devices.
Harman International Industries Inc./DE/ (NYSE:HAR): Shares of Harman International Industries Inc./DE/ are trading higher today after beating the street’s estimates with an impressive quarterly earnings report. Harman International Industries, Incorporated designs, manufactures, and markets audio and electronic systems. The Company’s Automotive segment designs, manufactures and markets audio, electronic and infotainment systems for vehicle applications and its Consumer segment designs, manufactures and markets audio and electronic systems for home, mobile and multimedia applications.
Altera Corporation (NASDAQ:ALTR): Shares of Altera Corporation are trading highertoday following the company’s latest earnings report to investors and shareholders. Altera Corporation designs, manufactures, and markets programmable logic devices and associated development tools. The Company’s products, include a variety of programmable logic devices and hardcopy application-specific integrated circuits.
Honeywell International Inc. (NYSE:HON): Shares of Honeywell International Inc. are trading higher today following the release of its latest quarterly performance. Honeywell International Inc. is a diversified technology and manufacturing company with operations around the world. The Company provides aerospace products and services, control technologies, automotive products, and power generation systems. Honeywell also provides specialty chemicals, fibers, plastics, and electronic and advanced materials.
SanDisk Corporation (NASDAQ:SNDK): Shares of SanDisk Corporation are tradinghigher today after delivering double-digit revenue growth in its latest quarterly report. SanDisk Corporation supplies flash data storage products. The Company designs, manufactures, and markets industry-standard, solid-state data, digital imaging, and audio storage products using its patented, high-density flash memory and controller technology.
IDEXX Laboratories, Inc. (NASDAQ:IDXX): Shares of IDEXX Laboratories, Inc. are tradingup today after boosting its outlook for the remainder of the year. IDEXX Laboratories, Inc. provides diagnostic, detection, and information systems for veterinary, food, and water testing applications. The Company also operates an international network of veterinary reference laboratories. IDEXX offers its products to customers worldwide.
Tempur-Pedic International Inc. (NYSE:TPX): Shares of Tempur-Pedic International Inc. are trading higher today after Raymond James boosting its rating on the company’s shares following it quarterly release. Tempur-Pedic International Inc., through its primary subsidiary Tempur World, manufactures and markets foam mattresses, pillows, and miscellaneous products under the Tempur-Pedic and other brand names.

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DJIA Soars 267 Points, Extends Weekly Winning Streak Ahead of EU Summit - djia, bac, dow, spy, goog, s p 500

2011-10-22T07:58:00.003-07:00

DJIA Soars 267 Points, Extends Weekly Winning Streak Ahead of EU Summit - djia, bac, dow, spy, goog, s p 500

The Dow Jones Industrial Average (DJIA – 11,808.79) finished near a session high, advancing 267 points, or 2.3%, when all was said and done. Only Bank of America (BAC) and General Electric bucked the trend, giving up 0.2% and 1.9%, respectively, while Travelers (TRV) led the 28 advancing blue chips with a gain of 5.2%. For the week, the Dow rallied 1.4%, and ended north of its 20-week moving average for the first time since mid-July.

The S&P 500 Index (SPX – 1,238.25) also ended near an intraday acme, tacking on 22.9 points, or 1.9%, by the close. For the week, the SPX added 1.1%, extending its own winning streak to three straight, and ending above its 20-week trendline for the first time in three months. Finally, the Nasdaq Composite (COMP – 2,637.46) broke out of the red to gain 38.8 points, or 1.5%, but settled the week 1.1% lower.

Turning to equities in focus, Chipotle Mexican Grill (CMG) upped its expectations for same-store sales growth ... Capital One Financial (COF) stepped into the earnings limelight ... Informatica (INFA) offered a lackluster earnings forecast ... IBM Corp. (IBM) emerged as a potential blue-chip contrarian play ... Option players upped the bearish ante on Ctrip.com (CTRP) ... and today's Quote of the Day comes from Matt, one of the many job seekers to have made the pilgrimage to Williston, N.D. -- America's newest oil boomtown. As a result of the influx, though, oil companies haven't been able to build housing units at a fast enough pace, which has resulted in a semi-permanent tailgate party for the workers left out in the cold. Read More

Top 10 Dow 30 (DJIA) Stocks this Week: TRV, HD, AXP, CVX, JPM, BAC, CAT, MCD, WMT, XOM (Oct 22, 2011) - djia, bac, dow, spy, goog, s p 500

2011-10-22T07:52:00.001-07:00

Top 10 Dow 30 (DJIA) Stocks this Week: TRV, HD, AXP, CVX, JPM, BAC, CAT, MCD, WMT, XOM (Oct 22, 2011) - djia, bac, dow, spy, goog, s p 500

The Travelers Companies, Inc. (NYSE:TRV) was the 1st best-performing stock last week in this segment of the market. Its weekly performance was 11.86% for the week. Its price percentage change was 2.94% year-to-date.

The Home Depot, Inc. (NYSE:HD) was the 2nd best-performing stock last week in this segment of the market. Its weekly performance was 5.16% for the week. Its price percentage change was 5.13% year-to-date.

American Express Company (NYSE:AXP) was the 3rd best-performing stock last week in this segment of the market. Its weekly performance was 5.12% for the week. Its price percentage change was 12.91% year-to-date.

Chevron Corporation (NYSE:CVX) was the 4th best-performing stock last week in this segment of the market. Its weekly performance was 5.04% for the week. Its price percentage change was 15.65% year-to-date.

JPMorgan Chase & Co. (NYSE:JPM) was the 5th best-performing stock last week in this segment of the market. Its weekly performance was 4.80% for the week. Its price percentage change was -21.22% year-to-date.

Bank of America Corp (NYSE:BAC) was the 6th best-performing stock last week in this segment of the market. Its weekly performance was 4.36% for the week. Its price percentage change was -51.57% year-to-date.

Caterpillar Inc. (NYSE:CAT) was the 7th best-performing stock last week in this segment of the market. Its weekly performance was 3.92% for the week. Its price percentage change was -6.69% year-to-date.

McDonald's Corporation (NYSE:MCD) was the 8th best-performing stock last week in this segment of the market. Its weekly performance was 2.65% for the week. Its price percentage change was 20.27% year-to-date.

Wal-Mart Stores, Inc. (NYSE:WMT) was the 9th best-performing stock last week in this segment of the market. Its weekly performance was 2.63% for the week. Its price percentage change was 5.54% year-to-date.

Exxon Mobil Corporation (NYSE:XOM) was the 10th best-performing stock last week in this segment of the market. Its weekly performance was 2.59% for the week. Its price percentage change was 9.59% year-to-date. Read More

BAC, Dow, SPY, GOOG, S P 500* DJIA Dow Jones Industrial Average Index DJX DJI, Nasdaq Index, S&P 500 Index Stock Market Investing

2011-10-22T07:47:00.000-07:00

BAC, Dow, SPY, GOOG, S P 500* DJIA Dow Jones Industrial Average Index DJX DJI, Nasdaq Index, S&P 500 Index Stock Market Investing

The ongoing debt resolution process in the eurozone is highly influential and currently, European leaders are suggesting that several more meetings are necessary prior to action plan details being released. The waiting process continues but in the meantime, the primary European indices closed out their last session of the week green. This positively skewed action helped push index trends in the U.S. higher.

Stocks were in rally mode throughout Friday’s session. Investors were feeling more optimistic on a global scale. Adding to the positive tone of the day were the better than expected crop of earnings reports. Companies such as McDonald’s and Harman International released positive earnings reports which continue to stoke the stock rally movement. McDonald’s stock pushed higher by over 3.5 percent after news spread of the better-than-expected earning results.

The indices closed out officially on the positive side of break-even. The Dow Jones Industrial Average finished higher by 2.31 percent at 11,808.79. The Nasdaq finished higher 1.49 percent at 2,637.46. The S&P 500 closed out the session higher by 1.88 percent at 1,238.25. The dollar dropped versus the euro, British pound and the Japanese yen. Oil price per barrel gained 1.6 percent and gold price per ounce moved higher by 1.4 percent. Read More

INDEXHANGSENG:HSI* Hong Kong Market May Reclaim 18,000-Point Level - (SHA:000001)

2011-10-21T07:02:00.000-07:00

INDEXHANGSENG:HSI* Hong Kong Market May Reclaim 18,000-Point Level - (SHA:000001)

The Hong Kong stock market has alternated between positive and negative finishes through the last five sessions, since the end of the six-day winning streak in which it had surged nearly 2,600 points or 13.5 percent. The Hang Seng Index finished just above the 17,980-point plateau, although now traders are looking for renewed support at the opening of trade on Friday.

The global forecast for the Asian markets is mixed with a touch of downside ahead of a key European summit meeting on Sunday. Technology stocks are expected to fall, while financials and oil companies may provide support. The European markets finished sharply lower on Thursday and the U.S. bourses were mixed but little changed - and the Asian markets are expected to split the difference.

The Hang Seng finished sharply lower on Thursday following heavy losses among the property, finance, commerce and industrial stocks.

For the day, the index retreated 326.12 points or 1.78 percent to finish at 17,983.10, after trading between 18,198.12 and 17,782.00 on turnover of 52.8 billion Hong Kong dollars.

Among the decliners, Cheung Kong Holding shed 1.99 percent, while Sun Hung Kai Property lost 2.12 percent, Henderson Land fell 2.56 percent, Hang Lung Properties dropped 1 percent, China Resources Land plunged 6.7 percent, China Overseas Land retreated 3.24 percent, HSBC shed 1.49 percent, Hang Seng Bank lost 1.88 percent, Bank of East Asia dropped 2.14 percent, PetroChina fell 2.58 percent, Sinopec gave away 1.38 percent and CNOOC lost 3 percent.Wall Street offers little guidance as stocks showed a lack of direction on Thursday, with traders reacting to just about every headline out of Europe. The major averages bounced back and forth across the unchanged line before eventually ending the session mixed.

With reports suggesting that Germany and France are struggling to reach an agreement regarding the enhanced powers of the region's bailout fund ahead of a high-profile summit on Sunday, French President Nicolas Sarkozy revealed that European leaders will hold a second summit next Wednesday.

As a result of the focus on Europe, traders shrugged off some relatively upbeat U.S. economic data, including a report from the Philadelphia Federal Reserve showing an unexpected expansion in regional manufacturing activity. The Philly Fed said its diffusion index of current activity jumped to a positive 8.7 in October from a negative 17.5 in September, versus forecasts for a negative 9.8.

The Labor Department also reported a modest drop in initial jobless claims in the week ended October 15, although claims remained above the key 400,000 level. Initial jobless claims edged down to 403,000 from the previous week's revised figure of 409,000. Economists had expected claims to drop to 400,000 from the 404,000 originally reported for the previous week. Read More

INDEXHANGSENG:HSI* China stocks lack direction ahead EU summit - (SHA:000001)

2011-10-21T06:57:00.000-07:00

INDEXHANGSENG:HSI* China stocks lack direction ahead EU summit - (SHA:000001)

Heads of European Union member states will have a summit trying to find a solution to the debt crisis. The Hang Seng Index (INDEXHANGSENG:.HSI) eked out a small 42.6 points or 0.2% gain while the Shanghai Composite Index (SHA:000001) shed 14.1 points or 0.6%.

Shipping and transportation stocks rose at the expense of safe havens: telecom and gold. Zijin Mining (HKG:2899), China's largest gold miner, fell the most among 42 components of the Hang Seng Index (INDEXHANGSENG:.HSI). China Telecom (HKG:0728) shed 1.6% while China Mobile (HKG:0941), the largest mobile carrier in the world, declined 0.8%. But oversold China COSCO (HKG:1919) and China Shipping Development (HKG:1138) bounced off bottom and surged 4.3% and 3.9%, respectively.

Trading in Shanghai missed direction. Investors sent the index to a new 31 month low as China's economy slowed and Europe, China's largest trading partner, remains trenched in debt problems. China COSCO (SHA:601919) was the best performing large cap component of the Shanghai Composite Index (SHA:000001) as value investors snapped up share s of China's largest container shipper.

Chinese stocks in the U.S. have the following key drivers on Friday. GE in-line earnings before the bell helped restore confidence in the U.S .economy. European, notably German, indices are trading sharply higher in the afternoon on hopes that the EU summit will deliver a breakthrough in the debt crisis. Moody's warning that France may receive a downgrade is a sure sign that the debt crisis is engulfing not just peripheral states like Greece and Portugal but reached the core of the eurozone by now. All eyes will be on the summit and will be a key driver of markets for the upcoming weeks. Read More