Daily Markets

Main Street Vs. Wall Street: Using ETFs To Capitalize

Tom Lydon — Fri, 20 Nov 2009 21:01:31 +0000

Millions are still out of work and losing their homes while Wall Street celebrates its rebound with bonuses and a return to profitability. It’s frustrating, but it does present exchange traded fund (ETF) opportunities.

On the one hand, unemployment rates remain elevated, companies continue to implement lean measures and overall consumer confidence is down. On the other hand, the largest four investment banks have earned $22.6 billion so far for this year, recovering much faster than … [visit site to read more]

Velocity Of US Money Supply At Long Last Picking Up

Prieur du Plessis — Fri, 20 Nov 2009 20:01:54 +0000

Despite ballooning Fed reserves to bail out banks, money supply as measured by the growth in money supply with a zero maturity (notes and coins, check accounts, savings deposits and money-market accounts collectively) continues to slow.

The slowing growth is contra to what normally happens when the Fed lowers the Federal funds rate.

In real terms the growth rate is also slowing.

The slowing in MZM growth is a consequence of US banks’ tight lending standards. The trend is likely to … [visit site to read more]

Why You Should Watch This Leisure & Entertainment ETF

Tom Lydon — Fri, 20 Nov 2009 19:02:53 +0000

The U.S. recession has many Americans feeling down in the dumps. Small surprise, then, that the leisure and entertainment exchange traded fund (ETF) has gained 39% year-to-date as we look for small escapes.

Three reasons the fund could continue to move as we enter into the thick of the holiday season:

First, the Associated Press recently announced that Viacom (VIA) won exclusive rights to air “Michael Jackson’s This Is It” on its MTV and BET cable networks starting in 2011. The … [visit site to read more]

US Government Debt: The Actual And Hidden Costs Are Rising Every Day

Mike Larson — Fri, 20 Nov 2009 18:18:02 +0000

This week was a fascinating one on the geopolitical front. President Barack Obama travelled to China in what was billed as a major diplomatic trip.

The idea? Try to reach common ground on several fronts, including global nuclear proliferation, environmental issues, and especially China’s currency …

The U.S., Europe, and even some of China’s Asian neighbors believe that China is artificially suppressing the value of its currency, the renminbi or yuan. That, in turn, is giving China … [visit site to read more]

Video: Market Movers: RTP, DHI, SJM, TXN, INTC, MRVL, BRCM

NYFP — Fri, 20 Nov 2009 18:12:08 +0000

The latest news and information on U.S. stocks that are moving the market. … [visit site to read more]

Investment Ideas: Here Are 3 Dirt Cheap Stocks

Tracey Ryniec — Fri, 20 Nov 2009 17:09:27 +0000

With all the talk of stocks being overvalued due to the massive rally we’ve seen since March, you’d think there’d be almost no dirt cheap stocks. You know what I’m talking about. I mean really cheap. Stocks with single digit P/Es and price-to-book ratios well under 1.0.
But what if I told you that there’s one sector where there’s not just one dirt cheap stock, but many of them. And as an added bonus, these dirt cheap stocks also have a Zacks Rank of #1 or #2, which means they have rising … [visit site to read more]

Australian Dollar: Caution

Trading Central — Fri, 20 Nov 2009 16:10:25 +0000

Update on supports and resistances. … [visit site to read more]

Canadian Dollar: Caution

Trading Central — Fri, 20 Nov 2009 16:10:23 +0000

Update on supports and resistances. … [visit site to read more]

“Audit The Fed” Bill Moves Along

Daily Reckoning — Fri, 20 Nov 2009 16:06:48 +0000

As I checked the currencies throughout the day yesterday, I noticed that as the day went on, the non-dollar currencies were stronger, led by the Big Dog, euro (EUR)… But then late last night, and I mean late last night, I checked them, and those gains had been wiped out.

So, when I arrived here this morning, I had one thing on the top of my list of things to do, and that was to find out what happened… Come on, I said to myself, it had to be more than the “risk on, risk off” stuff … [visit site to read more]

Video: NYSE Opening Bell Market Monitor: DELL, DHI, SJM

NYFP — Fri, 20 Nov 2009 15:56:12 +0000

The latest in news, commentary, and information on what’s moving the US equities markets. … [visit site to read more]

Treasury To Auction TARP Warrants

Zacks Investment Research — Fri, 20 Nov 2009 15:48:02 +0000

After almost a year of initiating the $700 billion Troubled Asset Relief Program (TARP) to rescue the nation’s financial industry, the U.S. Treasury Department said on Thursday that it would auction off stock warrants it acquired from three big banks that received a significant portion of taxpayers’ money and have fully repaid the same. The government is taking this step to free the lenders from the federal bailout program.

The three banks, whose warrants will be sold via auctions over … [visit site to read more]

USD/JPY Pushing Against The 100 Hour Moving Average At 89.11

Greg Michalowski — Fri, 20 Nov 2009 15:40:20 +0000

The 100 hour MA has held the topside this week and the pair is back up testing the level. The MA comes in at the 89.11 level currently. The high reached 89.12. A break above should lead to further gains, but so far, the market is using the level as a level to sell against. Until the price is broken the bias remains down for the pair.

The USDJPY has been relatively contained over the last week or so. The range for the week has extended from a high on Monday at 89.69 to the low … [visit site to read more]

Stock Market Briefs: DR Horton, Dell, JM Smucker

Zacks Investment Research — Fri, 20 Nov 2009 15:36:50 +0000

DR Horton (DHI) reported a fiscal fourth quarter loss of 73 cents, versus Zacks projections of a 27 cents loss, on revenues of $1.01 billion, which was inline with Zacks estimates. According to Chairman Donald R. Horton, “Our net sales orders in the September quarter reflected a 26% increase compared to the prior year quarter. However, market conditions in the homebuilding industry are still challenging, characterized by rising foreclosures, high inventory levels of available homes, … [visit site to read more]

Video: Dell Computes A 3Q Profit Loss

NYFP — Fri, 20 Nov 2009 15:24:00 +0000

PC giant Dell announced on Friday that it posted a large quarterly loss. … [visit site to read more]

Video: Sensex Rises To Close Week In Asia

NYFP — Fri, 20 Nov 2009 15:22:37 +0000

India’s BSE Sensex index closed the week on the upside while the rest of the major markets closed out the week in the red. … [visit site to read more]

Nordstrom - Momentum Stock Buy

Zacks Investment Research — Fri, 20 Nov 2009 15:15:10 +0000

Nordstrom Inc. (JWN) continues to trade near its 52-week high on the heels of better than expected Q3 results.
Company Description
Nordstrom, Inc operates as a specialty fashion retailer for men, woman and children in the United States. The company was founded in 1901 and has a market cap of $7.38 billion.
The retail sector has been weak for the last year as consumers continue to struggle with overbearing debt and high unemployment. But in spite of the challenges shares of Nordstrom … [visit site to read more]

Swiss Franc: The Downside Prevails

Trading Central — Fri, 20 Nov 2009 15:10:28 +0000

Update on supports and resistances. … [visit site to read more]

Japanese Yen: Under Pressure

Trading Central — Fri, 20 Nov 2009 15:10:26 +0000

Update on supports and resistances. … [visit site to read more]

British Pound: The Downside Prevails

Trading Central — Fri, 20 Nov 2009 15:10:24 +0000

Update on supports and resistances. … [visit site to read more]

Euro: Under Pressure

Trading Central — Fri, 20 Nov 2009 15:10:21 +0000

Update on supports and resistances. … [visit site to read more]

The Dirty Little Secrets Of Warrants, Options & LEAPS

Dudley Pierce Baker — Fri, 20 Nov 2009 14:45:04 +0000

With the gold bull market charging firmly ahead perhaps it is time to reflect upon what is actually happening from the perspective of the junior mining sector.

The first chart below is of the TSX Venture Index showing a great uptrend and looking very strong. The second chart shows us the TSX Venture Index relative to Gold. Wow, what a difference.

In effect, the TSX Venture Index is actually putting in a miserable performance relative to the price of gold.

We are firm believers this … [visit site to read more]

Interesting Articles To Read

Prieur du Plessis — Fri, 20 Nov 2009 13:15:11 +0000

This post provides links to a number of interesting articles I have read over the past few days that you may also enjoy.

Ambrose Evans-Pritchard (Telegraph): Is $6,300 fair value for gold? November 19, 2009.

The last parabolic spike in gold took off when central banks joined the fray in the 1970s, hoarding bullion with the same enthusiasm as gold bugs. Dylan Grice from Société Générale says it smells much the same today. He sees an eerie similarity between the decision of … [visit site to read more]

Stocks To Watch On Friday

Antonio Costa — Fri, 20 Nov 2009 13:06:36 +0000

Speculative players

DELL - Dell results miss expectations. The stock has a strong support at $14.81.
STP - Suntech Power Holdings - The stock broke a key resistance level at 15.50 on a volume expansion.
CRIS - Curis continues to trend higher this weak and despite a horrible stock market Thursday.
THQI - This stock can pop big time on any positive news.
RMBS - Rambus can pop big time on any positive news.
CTIC - Cell Therapeutics, Inc. - Watching for a close above $1.15.
LVLT - … [visit site to read more]

Cartoon: The Shrinking US Dollar

Prieur du Plessis — Fri, 20 Nov 2009 13:03:25 +0000

Source: Robert Ariail, Comics.com, November 17, … [visit site to read more]

EUR/USD Pressured On The Downside

Greg Michalowski — Fri, 20 Nov 2009 12:47:16 +0000

Up on Monday, down on Tuesday, up on Wednesday, down and up on Thursday, down on Friday. The EURUSD has seen its share of back and forth uncertainty. Lower stocks this morning are pressuring the pair. Oil is down 0.55 cents. Spot gold is down $1.50 or so.

From a technical perspective, the EURUSD found support yesterday at the 1.4845 area (low was 1.4843). This level corresponded with the gap low from Friday November 6th low (gapped higher on November 9th). The price is now back … [visit site to read more]

GBP/USD Moves Lower Again

Greg Michalowski — Fri, 20 Nov 2009 12:43:57 +0000

The GBPUSD initially consolidated in early trading today (Far East trading) and then started another move to the downside using the 100 bar MA on the 5 minute chart as a level to lean against just before the push through the important 1.6600 level. Other clues from the chart included the convergence of the 100 and 200 bar MA with the price, the slope of the moving averages turning over, and the final test of each before the move through 1.6600. Once that level was broken, … [visit site to read more]

Is The Intraday US Dollar Index Spike Valid?

David Spurr — Fri, 20 Nov 2009 12:35:23 +0000

The US Dollar Index Spiked this morning. It was a very odd spike on 5000 contracts to a high of 82 or so. This happened several weeks back and at that time, I sent an email to ICE about whether those were valid prints. They responded that those trades were broken and referred me to their rules and regulations which basically stated that they have the right to determine whether or not a price is a fair price. Scary stuff. At that time they obviously felt that that price was not … [visit site to read more]

Biotech Investing: Spread Your Risks With ETFs

Tom Lydon — Fri, 20 Nov 2009 12:01:15 +0000

The biotechnology sector is once again finding its footing, with some exchange traded funds (ETFs) focused on the sector up more than 30% since the market’s March 9 low. But there have been stumbling blocks on the way back to profitability.

A reputable biotechnology company has filed for Chapter 11 this week, deCODE Genetics Inc (DCGN), the company that famously compiled the genetic code of nearly every Icelander for research. The company crushed under $200 million in debt and … [visit site to read more]

Comcast-NBC Universal Deal To Change Comcast’s Business Model

Money Morning — Fri, 20 Nov 2009 11:01:50 +0000

With a possible buyout of General Electric Co.’s (GE) NBC Universal Inc. in the works, Comcast Corp. (CMCSA) is adapting to a changing technological landscape.

Comcast, the United States’ largest cable television provider, is hoping to avoid becoming the next newspaper or record company by expanding its role from an entertainment medium to a content provider.

“The world of cable delivery is about to change,” Forrester Research analyst James McQuivey told the Los Angeles Times. … [visit site to read more]

Friday’s Forex Outlook

UFXBank — Fri, 20 Nov 2009 10:34:15 +0000

USD Dollar (USD)

The Dollar strengthened against most majors after The U.S. economic recovery will extend into next year as manufacturing expands and the pace of firings abates, reports today indicated, Unemployment Claims came out better than expected at 505K vs. 503K forecast. NASDAQ and Dow Jones fell by 1.66% and 0.9% respectively, Crude oil fell by 2.7% closed at 77.4$ a barrel, Gold (XAU) closed almost unchanged at 1142$ an ounce. No economic data expected today.

EURO (EUR)

The … [visit site to read more]

The Forgotten Commodity - Rice

David Bettencourt — Fri, 20 Nov 2009 10:01:35 +0000

“Gold has been grabbing all the headlines lately as the price for the precious metal has hit record highs. In the weeks and months to come, however, you’re going to be hearing about a far more pedestrian commodity: Rice. The price of rice has started to climb based on reports that both India and the Philippines are looking to import record quantities. India lost 18% of its rice crop to drought this year. For the first time in more than 20 years, it may have to become a net importer of … [visit site to read more]

India Stock Market: Renewed Buying Bolsters Markets

Equitymaster — Fri, 20 Nov 2009 09:56:25 +0000

Buying activity intensified across index heavyweights during the previous two hours of trade pushing the indices above the dotted line. While buying is being seen across the board, select engineering, power and software stocks are bearing the brunt of profit booking.
The BSE-Sensex (^BSESN) and NSE-Nifty (^NSEI) are trading in the positive, up by around 142 points and 38 points respectively. The BSE-Midcap and BSE-Smallcap indices are trading almost flat currently. The Rupee is trading at … [visit site to read more]

India Stock Market: Sensex Up 236.20 Points On Friday

Sunidhi Securities — Fri, 20 Nov 2009 09:34:22 +0000

Sensex up 236.20 points on Friday (November 20, 2009)
–Recovers smartly from low post government’s comments on P-notes
–Up for 3rd week in row

Sensex rose 236.20 points or 1.4% to 17021.85
Nifty rose 63.45 points or 1.3% to 5052.45
Mid Cap rose 1.1%. Small Cap rose 0.4%.
BSE 500 was up 1.1%. Sensex gainers: 27

All 13 BSE Sectoral indices posted gains.
Advancers: 1452, Decliners: 1240, Unchanged: 98
Advance/Decline Ratio: 7:6

Sensex Day’s Range: 17041.79 - 16635.75
Nifty Day’s … [visit site to read more]

Dear Reader, We Cannot Criticize Goldman Sachs. Instead, We Admire It

Daily Reckoning — Fri, 20 Nov 2009 09:31:54 +0000

The Lloyd’s Prayer

Our Chairman, who art at Goldman
Blanfein be thy name
The rally’s come
God’s work be done
On earth as there’s no fear of correction
Give us our daily gains…

Poor Goldman Sachs (GS). Everyone is on its case. Criticizing. Carping. Jealous. Envious.

So, today we rise in defense of the Wall Street giant. Yes, the Goldmen may be shysters. But they are honest shysters…

We pick up sword and shield, ready to fight for Goldman, after reading The Financial … [visit site to read more]

Latest “Disastrous” US Housing Data Doesn’t Support Homebuilder Stocks

Daily Reckoning — Fri, 20 Nov 2009 09:21:38 +0000

October housing starts fell almost 11 percent. Mortgage applications have collapsed to a record 12-year low. Foreclosures are increasing the stock of homes to be sold at a pace of 300,000 per month. Unemployment at 10.2 percent is not supporting home purchases, especially when rents are also decreasing. What’s left?

Well, the government is trying to help… which is usually a bad sign. The Federal Housing Administration right now has an insurance reserve ratio of just 0.53 percent. … [visit site to read more]

Video: Clean Energy Alliance Between China And U.S.

NYFP — Fri, 20 Nov 2009 09:11:00 +0000

Chinese clean energy technology companies announced plans to invest in solar & wind manufacturing plants in the U.S. … [visit site to read more]

Stock News Briefs: AOL To Cut One-Third Of Workforce; DirecTV Won’t Rule Out Possible Takeover

Money Morning — Fri, 20 Nov 2009 09:09:46 +0000

AOL to Cut One-Third of Workforce; Geithner Rebuffs Calls for Resignation; Oil Follows Equities’ Decline; Leading Indicators Hit Two-Year High; U.S. Making Plans for New Iran Sanctions; DirecTV Won’t Rule Out Possible Takeover

AOL LLC Chief Executive Tim Armstrong told employees yesterday (Thursday) that he will ask for 2,500 volunteers, about one-third of the company’s workforce, to be laid off, The Wall Street Journal reported. The voluntary layoff program, which is part of an effort … [visit site to read more]

2010 Outlook For The US Banking Industry

Larry Doyle — Fri, 20 Nov 2009 08:02:21 +0000

What does the future hold for our banking industry? Will it be ‘business as usual,’ as some on Wall Street might like? Will the populist rage sweeping the country compel those in Washington to enact meaningful reform? Will credit loosen? Will housing stabilize and support increased lending by banks? How many banks will close? So many questions and so much uncertainty. While we can make projections on all these fronts, let’s tap into the minds of those who monitor developments in banking … [visit site to read more]

Get Rid Of Your General Electric Shares

Daily Reckoning — Fri, 20 Nov 2009 07:02:19 +0000

We’ve had General Electric (GE) in the OI portfolio for almost four years, predating my tenure as editor… Frankly, I don’t think GE is going to give us much more from here. It’s time to sell General Electric.

Deep down, it pains me to part from GE. This is an iconic old American firm, now grown into a world technology powerhouse (no pun intended). I honestly LOVE the GE business divisions that deal with ‘real’ things, like jet engines and locomotives and power generators and … [visit site to read more]

Are You Going For Yield With Your ETFs?

Tom Lydon — Fri, 20 Nov 2009 06:01:27 +0000

It’s hard to deny the appeal of an exchange traded fund (ETF) yield that’s sitting solidly in the double-digits, especially now that interest rates are at historic lows. But these high yields could be luring some investors to take on more risk than they’d otherwise be comfortable with.The latest short-term interest rates are at all-time lows, causing investors to seek performance in intermediate-term, mortgage-backed and other relatively risky bond funds for a better return, Karen … [visit site to read more]

Five Reasons Why China Is Not A Bubble

Daily Reckoning — Fri, 20 Nov 2009 05:01:39 +0000

A year ago, nobody thought China could manage 8 percent GDP growth in 2009. With year-to-date growth coming in at 7.7 percent through the first three quarters and getting stronger, China is poised to break that 8 percent mark rather easily.

The success of the Chinese government’s stimulus efforts, evidenced by the lofty economic numbers China has managed to produce amidst a global crisis, has led many to claim China is the next great bubble.

We see five reasons China is not a bubble … [visit site to read more]

Cartoon: Great Wallet of China

Daily Reckoning — Fri, 20 Nov 2009 04:20:19 +0000

The Great Wall was built between the 5th and 16th century BC to protect China from attacks along the northern borders of its empire.

Now China’s wallet is performing a similar role in economic policy. Few tools help keep a slumping superpower and its sometimes needy requests at bay better than control over the purse … [visit site to read more]

Rydex Market Timers: At It Again

Guy Lerner — Fri, 20 Nov 2009 04:01:55 +0000

The Rydex market timers are buying the dip to an extreme degree.

Figure 1 is a daily chart of the S&P 500 (^GSPC) with the amount of assets in the Rydex Money Market Fund in the lower panel.
Figure 1. S&P500 v. Rydex Money Market/ daily

Figure 2 is a daily chart of the S&P500 with the amount of assets in the Rydex bullish and leveraged funds versus the amount of assets in the leveraged and bearish funds.
Figure 2. Rydex Bullish and Leveraged v. Bearish and … [visit site to read more]

Financial Crisis Brings Big Pain At Small Firms

Michael Panzner — Fri, 20 Nov 2009 03:01:37 +0000

If policymakers were thinking ethically, rationally, and clearly — a big “if” considering their role in creating the mess we are in — you would expect that the public funds (and borrowed money) they are throwing around in the name of “rescuing” the economy would be targeted at those areas which presumably offer the biggest bang for the buck (leaving aside, of course, the question of whether the government should be spending taxpayers’ money like water in the first place).
In other … [visit site to read more]

Video: Pre-Market: German Producer Prices

NYFP — Fri, 20 Nov 2009 08:00:00 +0000

The stories,data, and stocks that may have the greatest impact during the next trading session. … [visit site to read more]

Is An Asset Bubble Forming In Hong Kong’s ETF?

Tom Lydon — Fri, 20 Nov 2009 02:01:28 +0000

After a slew of measures and policies that pumped world economies full of money, a lot of cash found its way into Asia, and Hong Kong is not pleased. Officials feel that Hong Kong’s economy and related exchange traded fund (ETF) have become artificially distended by international investors.

Norman Chan, monetary authority chief executive in Hong Kong, has suggested that low interest rates and quantitative easing of U.S. monetary policy has allowed people to borrow at low cost and … [visit site to read more]

No Inflation? Students In University Of California Will Disagree

Kenneth Bell — Fri, 20 Nov 2009 01:31:17 +0000

Of course, any one data point is irrelevant, and saying that California has the finances of a third-world country is insulting to many third-world countries. Still, a 32% hike in tuition? Consumer inflation is supposedly nil yet tuition is going up by 32%? I hope those kids don’t need to eat or drive to class.

From the San Francisco Chronicle:
The UC regents are expected to put the final seal today on a hefty 32 percent tuition increase as students resume the protests that shut down … [visit site to read more]

Tufts Endowment And Risk Taking?

David Spurr — Fri, 20 Nov 2009 01:01:28 +0000

I was reading the article about Tufts endowment and all the money that Northeast Universities have lost as a result of the financial meltdown. The President of Tufts , proudly proclaims that we need to take less risk…. What does this mean ? What a stupid statement. They turn billions of dollars over to the money managers and hedge funds. They know nothing about risk.

Tufts has no clue what the hedge funds are doing with their money. They might as well just dump it … [visit site to read more]

Not Yet Out Of The Woods: US Mortgage Delinquencies Now At Record High

Dirk Van Dijk — Fri, 20 Nov 2009 00:25:28 +0000

The Mortgage Bankers Association (MBA) reported today that mortgage delinquencies hit a record high in the third quarter:
“The delinquency rate for mortgage loans on one-to-four-unit residential properties rose to a seasonally adjusted rate of 9.64 percent of all loans outstanding as of the end of the third quarter of 2009, up 40 basis points from the second quarter of 2009, and up 265 basis points from one year ago, according to the Mortgage Bankers Association’s (MBA) National … [visit site to read more]

Commodity Investing: ETFs Or Mutual Funds?

Tom Lydon — Fri, 20 Nov 2009 00:11:32 +0000

The exchange traded fund (ETF) world and the mutual fund industry are competing for investors left and right, and the commodity sector is no exception. The choice for exposure is now readily available in both forms. But which is superior?

One of the questions it comes down to is whether you prefer active or passive management. The differences between mutual funds and ETFs still exist when considering funds that cover the commodities space.

Overall, passive ETFs cost less than active … [visit site to read more]

U.S. Share Of World GDP Remarkably Constant

Mark Perry — Fri, 20 Nov 2009 00:05:54 +0000

Somewhat surprisingly, the Economic Research Service of the U.S. Department of Agriculture has some great international historical macroeconomic datasets. According to its website:
The International Macroeconomic Data Set provides data from 1969 through 2020 for real (adjusted for inflation) gross domestic product (GDP), population, real exchange rates, and other variables for the 190 countries and 34 regions that are most important for U.S. agricultural trade.
The chart above shows … [visit site to read more]

New Technology Turns Coal Into Clean, High-Powered Gas

Money Morning — Fri, 20 Nov 2009 00:01:02 +0000

A new fuel technology - unveiled just two weeks ago - is about to revolutionize the energy business.
I saw it firsthand.

General Electric Co. (GE) asked me to present “The Future of Natural Gas” at the company’s Gas Turbine Symposium in Greenville, S.C. That’s where GE revealed a new generation of its market-leading turbine technology.

Most of GE’s major North American power-production end users attended the event. And the proceedings were simulcast to GE research centers in … [visit site to read more]

Stock Picks For Friday: Dell, Energy Conversion Devices And Suntech Power Holdings

Antonio Costa — Thu, 19 Nov 2009 23:55:18 +0000

( click to enlarge )

Suntech Power Holdings (STP) was one of the big winners on Thursday, as the stock traded up on their earnings. The technical indicators are looking better now for the stock. STP has broken the upper channel line of this short term downtrend line and is now very bullish with the breakout having a large spread and volume. Looking at the daily technical chart the stock has just entered into a bull market as the stock is on top of 50 day and 200 day moving average. … [visit site to read more]

Although President Obama Warns Of A “Double-Dip” Recession, We Expect U.S. Recovery To Continue

Money Morning — Thu, 19 Nov 2009 23:01:19 +0000

In a warning that focuses on the need to contain the soaring federal deficit, U.S. President Barack Obama yesterday (Wednesday) said that a continued accumulation of government debt could be enough to blunt the recovery and then drop the U.S. economy into a “double-dip” recession.

It was President Obama’s most-severe warning yet about the dangers of growing budget deficits at a time when the U.S. unemployment rate is at 10.2% and climbing. The comments were made to Fox News during an … [visit site to read more]

Regional Bank ETFs: The Bad And The Good

Tom Lydon — Thu, 19 Nov 2009 22:01:00 +0000

The financial fiasco is still too clear in our memories and some of the inimical legacies are spilling over into the regional banking industry. But, regional banks, along with related exchange traded funds (ETFs), may get a helping hand from the government.

Let’s start with the bad news.

Commercial real estate loan failures in the mid-sized regional banking industry have become a thorn in the economy’s foot, writes Andrew Smith for Newsday. According to a Wall Street rating agency’s … [visit site to read more]

Options Update On CVS, Mastercard, Visa, Regions Financial, NetApp

Andrew Wilkinson — Thu, 19 Nov 2009 21:57:52 +0000

(CVS) - CVS Caremark Corp. - Shares of the pharmacy retail chain are up 1.5% to $31.11 perhaps due, in part, to the ‘buy’ rating it received at UBS today. Optimistic options activity took place in the December contract as one investor initiated a bullish risk reversal. It appears the trader sold 4,400 puts at the December 31 strike for an average premium of 94 cents apiece in order to finance the purchase of the same number of calls at the higher December 32 strike for 63 cents each. … [visit site to read more]

Video: NYC Communication Jobs Continue To Be A Hard Find

NYFP — Thu, 19 Nov 2009 21:42:52 +0000

According to the city comptroller office, New York City continues to see communications jobs disappear, particularly in the fields of publishing and broadcasting. … [visit site to read more]

John Paulson Launching A Gold Fund With $250M Of His Own Money

Daily Reckoning — Thu, 19 Nov 2009 21:38:14 +0000

Paulson is launching a new pure-play gold-focused hedge fund with $250 million of his $6 billion personal fortune. The current president of Paulson & Co is already famous for earning $3.7 billion on the subprime meltdown.

Some question his timing, and why he’d begin a fund right now given that the precious metal is at all time highs well over $1,100. He, however, must be confident given that his own money is at stake on this new yellow wager. Paulson has a consistent record of … [visit site to read more]

Video: Oil Prices Slide On Strong Dollar

NYFP — Thu, 19 Nov 2009 21:36:49 +0000

Front month crude prices dropped this session following a stronger US dollar and a drop in US equities … [visit site to read more]

Petrobras Profit Exceeds Estimates

Zacks Investment Research — Thu, 19 Nov 2009 21:35:15 +0000

Brazilian energy giant Petroleo Brasileiro S.A. (PBR), or Petrobras S.A. announced encouraging third quarter results, helped by strong performance from the Supply segment. Earnings per ADR came in at R$1.66 (96 cents), comfortably beating the Zacks Consensus Estimate of 80 cents. However, on a year-over-year basis, Petrobras’ earnings per ADR was down approximately 28.7%, hurt by lower prices of oil and natural gas. Still, they were better than the high double-digit earnings decline … [visit site to read more]