November 30, 2012
Equities Sector Coverage: Late Spike Helps Stocks to Close Flat
 Personal Income was flat in October while Spending declined 0.2%. The Dow Jones Industrial Average traded up to 13,053.74 then dipped to 12,988.68 versus the 200-day simple moving average at 12,995.25. The Nasdaq traded up to 3014.25 then dipped to 2999.72 staying above its 200-day SMA at to 2986.99. Asian stocks were higher on Friday. The Nikkei 225 closed at 9446 – up 0.48%. The Hang Seng closed at 22,030 – up 0.49%. European exchanges closed mixed on Friday. The FTSE 100 ended the day at 5,867 – down 0.06%. The DAX ended the day at 7,406 – up 0.06%. The CAC 40 ended the day at 3,557 – down 0.33%. The yield on the 10-Year US Treasury declined from 1.630% to 1.594% staying below the 50-day and 200-day simple moving averages at 1.682% and 1.761%. Comex gold declined from (more)…
Good Luck, Mr. Carney
 When UK Chancellor of the Exchequer George Osborne announced Mark Carney will succeed Sir Mervyn King as BOE chief next year, the surprise was universal: The Brits picked a Canadian?! My surprise, however, was of a different sort: Osborne didn’t pick a regulatory guru?! You see, the next BOE Governor won’t have a central banker’s typical portfolio. Next year, financial regulatory oversight moves from Financial Services Authority (FSA) to the BOE, making the bank’s chief supreme overlord of monetary policy and bank regulation. Thus, the governorship’s applicant pool was rather atypical: Sure, there were a couple monetary policy wonks, but there were also politicians and regulatory officials—not exactly logical picks for a position with veto power over interest rates, quantitative easing and the like. Then again, it’s tough to argue the reverse—that a monetary policy specialist has much business chairing (more)…
Stocks Under $10: Non-Ferrous Mining & Silver Mining Stocks
 At www.ValuEngine.com we show that the Basic Materials sector is 4.3% undervalued with the Mining – Non-Ferrous industry 16.7% undervalued and the Mining – Silver industry 17.5% overvalued. All nine of the stocks in today’s table have complete ValuEngine data and we have enough price data to have most value levels, risky levels and pivots. Alcoa Inc. (AA) – has only been below $10 since May 2, 2012. Alexco Resource Corp. (AXU) – traded up to $10.27 in April 2011, otherwise this stock has been below $10 for at least five years. Endeavour Silver Corp. (EXK) – has only been below $10 since October 8, 2012. Fortuna Silver Mines Inc. (FSM) – has been below $7.75 for at least five years. Lundin Mining Corporation (LUNMF) – has been below $10 since the week of December 21, 2007. Paramount Gold and Silver Corp. (PZG) – has been (more)…
As Sam Sees It: The Two Most Annoying Words on Wall Street Right Now
 Each week, we tap the insight of Sam Stovall, Chief Equity Strategist for S&P Capital IQ, for his perspective on the current market. EQ: The market has bounced up pretty nicely over the past two weeks after falling over 5 percent for the week immediately following the election. With the market up about 9.5 percent year-to-date, what is the likelihood of an end-of-year rally as we approach December? Stovall: I think the likelihood is pretty good because in the election years since 1900, whenever the incumbent has been reelected, the market was up about 1 percent in November and gained in price a little less than 60 percent of the time. In addition, it was up about 3 percent in December and rose in price 75 percent of the time. So if you look at the entire two-month period, the average (more)…
Chicago PMI Edges Into Expansion Territory in November, Narrowly Misses Expectations
 The Chicago Purchasing Manager’s Index (PMI) modestly accelerated in November, according to the Institute for Supply Management on Friday. The index, a barometer of business activity in the Chicago region, rose to 50.4, following two straight months of contraction, including a reading of 49.9 in October. Readings above 50 indicate expansion in business activity. The index was only slightly lower than a consensus of economist expectations of a 50.5 reading. Production increased to 54.7 from 51.8 the month prior and employment rose 4.9 points to 55.2. Deliveries from suppliers also helped the index move back into expansion mode with a nearly 7-point increase to 57.3. Counterbalancing the gains, new orders dropped to their lowest levels since 2009 with a 5.3-point move down to 45.3. Inventories contracted to 47.1, the lowest level since February 2010. The decrease is new orders is (more)…
Tellabs Shares Spring Upward on $1 Special Dividend News
 Tellabs Inc. (TLAB) is seeing shares track higher in early trading after advancing in after-hours trading on Thursday. The company, whose shares closed the regular session on Thursday at $2.95 each, announced a special dividend of $1.00 per share to shareholders of record at the close of business on December 14. The dividend is payable on December 21. The phone-equipment maker also said that it is continuing with its previously announced share repurchase program under which Tellabs may repurchase up to $224.6 million-worth of shares. At current prices, that would account for about 22 percent of the current shares outstanding. The Naperville, Illinois-based company is using a portion of its $942 million in cash on hand for the buy-back program. Separately, Tellabs also named interim Chief Executive Officer Daniel Kelly to the position permanently. Kelly, 51, whom also serves as (more)…
Face-Saving Fiscal Cliff Negotiations a Drag on Everything
 The stock market is acting as if the Street expects a “deal,” which means it is vulnerable to news that a deal is not even close. (“news whipsaw”). Traders may opt to lighten up going into the weekend just in case the news greeting the market Monday morning is negative. Disappointment now would initially take the market down to DJIA 12,895 (S&P 500: 1401). Resistance starts at DJIA 13,075 (S&P 500: 1417). More optimistic statements could bump the market higher to DJIA 13,155 (S&P 500: 1423) – a stretch. This whole fiscal cliff drama is part negotiation, part brinkmanship. So far, no one is blinking. It’s too early for a deal to be announced. Odds favor more “News whipsaw.” Investor’s first read – an edge before the market opens DJIA: 13,021.82 S&P 500: 1415.95 Nasdaq Comp.: 3110.03 Russell 2000: 823.20 (more)…
China Stocks Recover from Early Week Losses
 China stocks regained their footing late this week, but further gains may be had to come by. On Friday Hong Kong’s Hang Seng Index rose 0.5% to 22,030 in heavier trading, and the index of Chinese stocks climbed 1.3% to 10,623. Following a 3.6% surge in both indexes last week, plunging A-shares on China markets led to a retreat early this week. But solid gains Thursday and Friday allowed the Hang Seng to rise 0.5% this week while the index of Chinese companies inched up 0.2%. The late-week turnaround was supported by the inflow of foreign funds resulting from loose monetary policies in the U.S. and Europe, said Ben Kwong, chief operating officer at KGI Asia. “However, we are relatively skeptical on the room of further upside in very short term (say coming week),” he told Equities in an email. (more)…
November 29, 2012
Equities Sector Coverage: Dow Closes Above 13,000 As Investors Shrug Off More Cliff News
 Initial Jobless Claims came in at 393,000 in the latest week, well above the 350,000 recessionary threshold. The Dow Jones Industrial Average rebounded to 13,062.56 then dipped to 12,961.92 then moved back and forth around its 200-day simple moving average at 12,993.05. The Nasdaq rebounded to 3017.18 then dipped to 2996.30 staying above its 200-day SMA at to 2986.02. Asian stocks were higher on Thursday. The Nikkei 225 closed at 9401 – up 0.99%. The Hang Seng closed at 21,923 – up 0.99%. European exchanges closed higher on Thursday. The FTSE 100 ended the day at 5,870 – up 1.14%. The DAX ended the day at 7,398 – up 0.75%. The CAC 40 ended the day at 3,569 – up 1.53%. The yield on the 10-Year US Treasury declined from 1.645% to 1.608% staying below the 50-day and 200-day simple (more)…
Boehner Comments Strip Winds from the Dow’s Sails
 Stocks have pared early morning gains that were fueled by optimistic economic data showing that the U.S. economy grew faster than originally thought in the third quarter, strong pending home sales and initial jobless claims declining in the latest full week. The bulls were also making a morning run following a strong Wednesday session as traders felt that Republicans and Democrats were putting aside differences in Washington to address the upcoming fiscal cliff, a $600 billion blend of tax increases and spending cuts set to occur with the New Year. President Obama had said on Wednesday that he felt confident that an agreement would be reached by Christmas, wending way for two consecutive down days for the Dow to be eliminated by upward market pressure. The momentum lost its steam after House Speaker John Boehner said in a Thursday morning (more)…
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