Day Trading Option Blog

Stocks slip as investors push into safe-haven investments; Dell weighs on technology stocks

2009-11-21T17:40:00.000-08:00

Investors can't shake their fears that the economy isn't keeping up with the stock market.

Stocks fell for a third straight day Friday as a disappointing outlook from computer maker Dell Inc. suggested that an economic recovery could be uneven. The major indexes all had moderate losses, leaving the Dow Jones industrials with a slim 0.5 percent weekly gain while broader indexes slid.

The market, which has been shuttling between concerns about the economy and traders' need to find high-yielding investments, is back to worrying about the economy. Demand for safe haven investments like Treasurys and the dollar rose for a second day in response to Dell's outlook and comments from European Central Bank President Jean-Claude Trichet, who said the ECB plans to start reining in some of its stimulus programs. A rising dollar also hit commodities producers and exporters.

The week's trading saw investors, who have been pumping money into stocks because record-low interest rates mean paltry returns for the dollar and Treasurys, change that strategy. Many are now questioning whether the massive stock rally this year really has been justified given the soft spots in the economy, and so they've been quick to retreat to safe harbors like government debt and the greenback.

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US STOCKS-Wall St falls on financials' weight; S&P off for Oct

2009-11-02T02:52:00.000-08:00

U.S. stocks fell on Friday, led by financial stocks as reports painting a mixed economic picture dented optimism fed by the economy's return to growth.

On the heels of a government report that showed gross domestic product grew at its best rate in two years, Friday's data showed Midwest area manufacturing was strong, but consumer sentiment slipped this month.

The Nasdaq was on track to post its first month of decline in eight and the S&P 500 struggled to end the month in positive territory, evidence of a loss in steam after a rally that drove stocks up nearly 60 percent from lows hit in March.

"The market's had a huge run up and hedge funds and money managers are coming into crunch time," said Tom Alexander, head of Alexander Trading in Savannah, Georgia.

"Those that had these huge gains may have a finger on the trigger, locking in some of those gains."

The Dow Jones industrial average lost 135.58 points, or 1.36 percent, to 9,827.00. The Standard & Poor's 500 Index fell 15.49 points, or 1.45 percent, to 1,050.62. The Nasdaq Composite Index dropped 28.34 points, or 1.35 percent, to 2,069.21.

On the final trading day of the month, the S&P 500 was down 0.99 percent for October. If the index is unable to hold onto the month's gains, it will snap a seven-month winning streak. At midday's levels, the Nasdaq was down 2.7 percent for the month, while the Dow was up 1 percent.

Shanghai set to build Disneyland

2009-11-01T22:03:00.000-08:00

The Chinese government could give the green light this week for a multi-billion dollar Disney theme park in Shanghai, a report said Monday.

Quoting an unnamed government official with direct knowledge of the project, the South China Morning Post said the 3.6 billion dollar amusement park had been approved.

"What I can say at this moment is that we will hold a press conference to announce the details of the project in the near future," Han was quoted as saying.

In a statement, Disney said the park had yet to be confirmed although the company and Shanghai officials submitted a proposal to China's central government.

"No deal has been agreed to, no project has been approved," Leslie Goodman, Disney's executive vice president for worldwide public affairs, said in the statement Monday.

Shanghai has been working for almost a decade to land a world-class amusement park, partly to shore up its lagging economic growth compared with other Chinese cities, the report said.

Hong Kong opened a Disney theme park in 2005.

Happy 38th birthday, Walt Disney World!

2009-10-04T01:25:00.001-07:00

On October 1, 1971, the Magic Kingdom at Walt Disney World opened officially, as Walt's brother Roy brought the first Disney theme park to the east coast.

Why the Dow is Hitting 10000 Even When Consumers Can't Buy And ...

2009-09-23T23:36:00.000-07:00

So how can the Dow Jones Industrial Average be flirting with 10,000 when consumers, who make up 70 percent of the economy, have had to cut way back on buying because they have no money? Jobs continue to disappear. One out of six Americans is either unemployed or underemployed. Homes can no longer function as piggy banks because they’re worth almost a third less than they were two years ago. And for the first time in more than a decade, Americans are now having to pay down their debts and start to save.

Even more curious, how can the Dow be so far up when every business and Wall Street executive I come across tells me government is crushing the economy with its huge deficits, and its supposed “takeover” of health care, autos, housing, energy, and finance? Their anguished cries of “socialism” are almost drowning out all their cheering over the surging Dow.

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Dow Jones Industrials: A Different Risk Perspective

2009-09-22T00:49:00.000-07:00

The chart above shows the use of an over-looked measure for determining the risk of owning equities. The graphic depicts the Ulcer Index as applied to the Dow Jones Industrial Average (DJIA) since October 1928 - which is when easily accessible archived records are available.

The index is sometimes applied as a metric for indicating the strength or weakness of a portfolio manager's performance. Most pertinently it addresses the issue of how the portfolio has suffered in terms of its maximum draw-down. The notion of draw-down is useful for determining risk and volatility of the returns that one would actually experience in holding a portfolio (in this case the 30 stocks of the DJIA). It differs from the more commonly used Sharpe Ratio which is used and is based on the standard deviations of the returns.

In essence the draw-down is the amount which a portfolio loses, tracked on a periodic basis, from its current level in relation to the high water mark of the portfolio's returns. The high-water mark itself is a moving amount and in regard to the DJIA it can basically be seen as a continuous recording of the maximum value of the index that has been achieved as of the date of measurement. From this high-water mark one can calculate the percentage change for each snapshot in time of the portfolio with respect to the current maximum value that the index has attained.

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Bank of America to Pay for Merrill Backstop, Faces SEC Trial

2009-09-22T00:37:00.000-07:00

Bank of America Corp., the biggest U.S. bank, said it will pay the government $425 million to cancel an unused guarantee of Merrill Lynch & Co.’s assets and cut reliance on federal support after two bailouts.

The payment would end a dispute over what the bank owes the U.S. for a promise to help absorb losses on $118 billion of holdings, mostly at Merrill Lynch. The federal guarantee helped seal Bank of America’s takeover of the New York-based brokerage after fourth-quarter losses spiraled past $15 billion. While the accord was announced in January, an agreement was never signed and the bank resisted paying.

Bank of America also faces pressure from Representative Edolphus Towns, a New York Democrat and chairman of the House Oversight Committee, who scolded the bank yesterday for missing a deadline to turn over documents sought by his panel. Chief Marketing Officer Anne Finucane plans to meet with Towns to discuss how to provide information “without violating attorney- client privilege,” bank spokesman Scott Silvestri said.

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Stocks shift back to rally mode as analysts make upbeat calls; Dow ...

2009-09-19T01:18:00.000-07:00

The stock market shifted back into rally mode Friday after analyst upgrades boosted investor optimism about the economy.

A 36-point advance in the Dow Jones industrial average left the index at a new high for the year and with a gain of 215 points for the week, its best weekly performance since July. Stock indexes have risen in nine of the past 11 days.

The market got a boost from a new economic forecast at Barclay's Capital, which raised its projection for growth in the nation's gross domestic product for first three months of next year to 5 percent from 3 percent. GDP has been shrinking, although many economists think it will return to growth for the July-September quarter.

Meanwhile, Procter & Gamble Co. pulled the Dow higher after an analyst raised her rating on the consumer products company in part because of its price-cutting strategy. P&G's huge stable of brands includes Tide detergent and Gillette razors.

The market's climb came a day after a pullback that did little to quiet analysts' calls for a break in the market's run.

Marc Harris, co-head of global research for RBC Capital Markets in New York, said the strength of the rally has surprised many investors because some of the stocks posting the biggest advances are lower-quality companies with weak balance sheets that investors only months ago feared might go out of business.

The Dow rose 36.28, or 0.4 percent, to 9,820.20, its highest close since Oct. 6, when it finished at 9,956. The index is up 11.9 percent for the year.

The broader Standard & Poor's 500 index rose 2.81, or 0.3 percent, to 1,068.30, while the Nasdaq composite index advanced 6.11, or 0.3 percent, to 2,132.86.

The Dow's gain of 2.2 percent for the week was its best gain since the week ended July 24. The S&P 500 index and the Nasdaq advanced 2.5 percent.

Bond prices fell, pushing yields higher. The yield on the benchmark 10-year Treasury note rose to 3.46 percent from 3.39 percent late Thursday.

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Bank of America, CBBO, ZUMZ, TOL, KBH, SONC, HLX, DVR Popular ...

2009-09-19T00:58:00.000-07:00

U.S. stocks were up Friday as the Dow Jones Industrial average climbed 46 points to 9830, the S&P 500 rose 5 points to 1070 and the Nasdaq Composite gained 11 points to 2138.

Bank of America Corporation (NYSE:BAC, $17.57, -$0.04, -0.23%) today announced the Board of Directors authorized a regular quarterly dividend of $18.1250 per share on the 7.25 percent Non-Cumulative Perpetual Convertible Preferred Stock, Series L. The dividend is payable on October 30, 2009 to shareholders of record as of October 1, 2009.

Columbia Bancorp (NASDAQ:CBBO, $2.53, +$1.34, 112.61%) is among the top percentage gainers in mid-day trade and surged more than 112 percent to $2.53 on huge volume of 1.78 million shares on no news.

Wedbush Morgan raised Zumiez Inc. (NASDAQ:ZUMZ, $16.94, +$1.61, 10.53%) to neutral, saying solid back-to-school sales could lead to another month of “accelerated sales results” and better-than-expected third-quarter earnings despite Zumiez’s “more muted promotional stance relative to other teen retailers.” The firm added that plans to protect margins.

The housing rebound will continue, even if there are a few bumps along the way, JPMorgan said in upgrading both Toll Brothers Inc. (NYSE:TOL, $22.27, +$0.74, 3.44%) and KB Home (NYSE:KBH, $20.35, +$0.66, 3.35%) to overweight. “While fundamentals will likely not demonstrate an uninterrupted solid rate of improvement over the next 6-12 months, we believe that not only is housing solidly past its trough, but over the next 24 months will continue to recover and drive further upside to the current rally in the home-builder stocks.” ...

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Thain Says He Should Have Furnished Merrill at Ikea

2009-09-19T00:56:00.000-07:00

John Thain, the former chief executive officer of Merrill Lynch & Co. who was accused of overspending on an office renovation as the broker teetered, said he should have bought less-expensive furniture at Ikea.

“We decorated it in the style that Merrill Lynch offices were, which was very, very nice,” Thain said yesterday during a speech in Philadelphia. “That was a mistake, and I’m sorry that I did that. If I had that to do over again, I’d furnish it in Ikea.” His remark was met with laughter and applause at the University of Pennsylvania’s Wharton Business School.

Thain, 54, said he reimbursed the company for $1.2 million spent to redecorate an office, two conference rooms and a reception area. He was dismissed from Bank of America Corp., which bought Merrill Lynch on Jan. 1 for $29 billion, after the renovations came to light. The furniture included a $35,000 commode -- “not a toilet, it’s a chest of drawers,” Thain told the crowd -- and a $25,000 antique mahogany pedestal table.

“John, stop by Ikea anytime,” said Mona Astra Liss, a spokeswoman for the retailer, known for assemble-it-yourself furniture and in-store restaurants. She offered to show “a wealth of furniture choices” for home and office, “and feed you Swedish meatballs, too.” Ikea, founded in Sweden and registered in Leiden in the Netherlands, sells a 3-drawer chest for $49.99.

Bank of America CEO Kenneth Lewis fired Thain after Merrill’s $15.3 billion loss forced the company to seek more government aid and amid disclosures he accelerated year-end bonus payments to Merrill employees before the deal closed. ...

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Postponing Dow 10,000 For Now

2009-09-17T09:20:00.000-07:00

Wall Street wants to party like it’s 1999.

March 29 of 1999, to be specific.

That’s the date that marked the first time the Dow Jones Industrial Average (DJI) broke into five-digit territory on the close - there’d been a two-week courtship before the Dow could mark the accomplishment on a closing basis - a move that sparked festivities on the floor of the New York Stock Exchange, and epitomized the bull-market run to unprecedented territory that imploded in the ensuing bubble in high-tech stocks.

There’s been, of course, a series of recoveries, corrections, reprieves, bear traps and feverish rallies in the ensuing decade-plus of market action, capped by the bear market that began in July 2008, when the Dow dropped 20% from the October 2007 highs above 14,000, and the subsequent bull market that launched in April of this year, when the average bounced 20% off the March 6 lows of just over 6600.

The Dow industrials start Thursday a little more than 200 points away from the 10,000-point mark, after gains in eight of the last nine sessions propelled the average to its highest level since Oct. 9 last year.

The Dow added 108 points to its total in Wednesday’s trading, showing a little of its old firepower. ...

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Marvel vs. Disney: A corporate purchase unites distinctly ...

2009-09-16T02:25:00.000-07:00

Marvel vs. Disney: Two very different Americas

“Wish upon a star,” Jiminy Cricket, Disney’s arthropod muse, likes to say.

“Leave Hulk ALONE!” the Marvel superhuman most in need of anger management likes to say.

It’s difficult to come up with two more competing takes on American life than those built by Walt Disney on one hand and Marvel Comics on the other. Here are distinctly opposite versions of the American experience, each an indelible part of the country’s popular culture.

In this corner: Disney’s America, a pastoral vision built upon one man’s idealized memory of his small-town childhood, filled with trains and friendly people and dreams that really do come true if you believe hard enough. A world of black and white, rendered in brilliant Kodachrome.

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Walt Disney Plans Largest Expansion in Magic Kingdom History

2009-09-14T21:54:00.000-07:00

(ANAHEIM, CA) -- The largest expansion in the history of Walt Disney World in Orlando, FL and new attractions at Walt Disney's Anaheim, CA site are in the works today.

New Star Tours
The re-Imagined "Star Tours" attraction is coming to California and Florida in 2011 and a major Fantasyland expansion at Walt Disney World at Lake Buena Vista, FL is scheduled for 2013.

The estimated cost of the upgraded attractions and the construction work involved was not disclosed by Walt Disney Parks and Resorts Chairman Jay Rasulo in a Sept. 12 address at the first D23 Expo in Anaheim.

However, industry analysts who follow Walt Disney's financial performance regularly estimate in published accounts the cost will be at least $1 billion.

Little Mermaid
"Storytelling is the DNA of Walt Disney dreams and we're always exploring new ways to tell new stories in new places," Rasulo said in a keynote presentation at the Anaheim Convention Center. Following his talk, he took the crowd on a "behind-the-magic" tour of Disney destinations.

Rasulo also announced that a new 3-D version of the tremendously-popular "Star Tours" attraction will debut at the Disneyland Resort and Walt Disney's Hollywood Studios in 2011. Based on the iconic Lucasfilm "Star Wars" films, the attraction will include immersive new elements that will take guests to many familiar places in the Star Wars galaxy.

For Walt Disney World in Florida, guests will soon be able to: ...

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Option Skews - Relatively Heavy Call Activity on Citigroup Inc ...

2009-09-14T10:31:00.000-07:00

Here are the stocks seeing a bias toward call activity on Friday. This filtered scan is based on the International Securities Exchange (ISE) buy-to-open data. It looks for stocks where the previous day's call volume on the ISE is at least twice as great as the put volume. It then sorts the stocks based on the call volume. Since this is buy-to-open data, this can be a good source for finding stocks where optimism is emerging. Of particular interest to me would be situations where we see call activity on stocks that are still in intermediate-term downtrends. This would be a potentially cautionary sign from the contrarian perspective

Companies included in today's scan results: Citigroup Inc (C), MGM Mirage (MGM), Bank of America Corp (BAC), DryShips Inc. (DRYS), YRC Worldwide Inc (YRCW), SPDR Gold Trust (GLD), Las Vegas Sands Corp (LVS), Hecla Mining (HL), Goldman Sachs Group (GS), Maxim Integrated Products (MXIM), Energy Conversion Devices, Inc (ENER), Frontier Oil (FTO), MetroPCS Communications, Inc. (PCS), National Semiconductor (NSM), Altera Corp. (ALTR), Intel Corp. (INTC), Alcoa (AA), ATP Oil & Gas Corp (ATPG), Barrick Gold (ABX), Monsanto Co (MON), Capital One Financial (COF), Newmont Mining (NEM), Goldcorp Incorporated (GG), Genworth Financial Inc (GNW), Pfizer (PFE).

Citigroup Inc, Bank of America Corp, Goldman Sachs Group, and Las Vegas Sands Corp are the charts that stood out to me -

The post below noted put buying on financial names. The data below shows the flip side of the coin with Citigroup Inc, Bank of America Corp, and Goldman Sachs Group. Both Citigroup and Bank of America were covered last week and there has been no change in the technical picture. The daily chart of GS shows a very steady uptrend in place since the November lows.

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Obama pushes Congress for tighter financial regulation on ...

2009-09-14T10:26:00.000-07:00

Five of the biggest banks — Goldman Sachs, JPMorgan Chase, Wells Fargo, Citigroup and Bank of America — posted second-quarter profits totaling $13 billion. That's more than double what they made in the second quarter of 2008 and nearly two-thirds as much as the $20.7 billion they earned in the second quarter of 2007 — when the economy was considered strong.

The failure of Lehman Brothers — the biggest bankruptcy in U.S. history — and the panicky sales of Bear Stearns to JPMorgan Chase and Merrill Lynch to Bank of America transformed Wall Street and gave fewer competitors increased market power.

As of June 30, three banks — JPMorgan Chase, Wells Fargo and Bank of America — held $2.3 trillion in domestic deposits, or $3 out of every $10 in deposit in the United States. Three years ago those three institutions held about 20 percent of the industry total.

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US Stock-Index Futures Decline; Bank of America, Alcoa Fall

2009-09-14T09:03:00.000-07:00

Bank of America Corp. slid 2.4 percent in Germany as Nobel Prize-winning economist Joseph Stiglitz said the U.S. has failed to fix the underlying problems in its banking system following the collapse of Lehman Brothers Holdings Inc. a year ago. Alcoa Inc. declined 2.5 percent as HSBC Holdings Plc rated the shares “underweight” and metals retreated in London.

Futures on the S&P 500 expiring in December slipped 0.8 percent to 1,029.50 at 11:16 a.m. in London, after the index rose 2.6 percent last week. Dow Jones Industrial Average futures fell 0.6 percent to 9,471. Nasdaq-100 Index futures lost 0.8 percent to 1,670. Stocks in Europe and Asia also retreated.

Bank of America, which bought Merrill Lynch & Co. a year ago, dropped 2.4 percent to $16.56. Citigroup Inc., the U.S. bank rescued by $45 billion in taxpayer funds, declined 2.2 percent to $4.51.

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Should You Buy Bank of America Stock?

2009-09-13T18:02:00.000-07:00

Perhaps banks have become so bad that you have decided to stop even researching stocks in the financial sector. Bank of America and Citi saw their stock prices absolutely plummet in 2008 and many believe that
they will never be the same again. As a debt collector for Bank of America, I saw first-hand just how bad the general economy and health of the banks really were. Default rates on unsecured loans sky-rocketed. Investors in Bank of America went home weeping daily.

But what about now? Now that the worst is over, is it okay to invest in the beleagured banks like Bank of America and Citibank? Financial institutions seemed to get us into this recession, and I believe, they must recover in order to lead us out of the recession. It is my belief that when the general economy recovers, financial institutions will outperform most of the other sectors of the market. So, in general, indicators seem bullish in the long-term for financial institutions. This does not mean, though, that Bank of America is a good place to put your money. Before I give you any more of my opinions, let’s look at some raw data.

Bank of America as of September 2009 is currently trading around 17 dollars. Bank of America is a large-cap stock with a market capitalization of over 147 billion dollars. They have a 1.95 debt to equity ratio and are indicating a net profit margin of 6 percent. Not only is it tricky to understand the terms of a Bank of America credit card, ...

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Undervalued GE stock a buy

2009-09-13T03:03:00.000-07:00

Here are my quick takes on four stocks that are among the best and worst performers in the U.S. this year.

• General Electric Co., down 9 percent in 2009, is one of the worst of the Dow Jones Industrial stocks so far this year. For many years I have been advising readers and clients to avoid this stock. Too high a portion of its sales and earnings came from GE Capital, the company's big commercial finance arm, which I found difficult to penetrate and analyze.

Now, with GE trading at $14.67, down from a high of more than $58 in 2000, I believe the time has finally come to buy it.

I still fret about GE Capital. Yet there is much more to GE. It builds nuclear power plants, locomotives, aircraft engines and medical imaging devices.

I think the stock is undervalued, even assuming one puts a value of zero on GE Capital. Skeptics, including short sellers I've talked with, argue that GE Capital is worth less than zero. I doubt that.

Certainly, there is risk in buying GE. For example, the company's debt was equal to 459 percent of equity as of June 30.

• American Express Co., the biggest U.S. credit-card company by purchases, is the top stock in the Dow Jones industrial average. The New York-based company's stock is up 84 percent in 2009.

I didn't like American Express when I wrote about it in May, and I don't like it now. On May 11 I wrote, ''I fear that for Amex, crummy is the new normal.'' Since then the stock has advanced to $34.17 from about $26.

For seven years, from 2002 through 2008, American Express consistently earned more than $2 a share, and exceeded $3 (before extraordinary items) in 2007. This year, analysts are looking for $1.05, or about half of the profit American Express notched during the glory years.

Those are GAAP earnings, meaning earnings measured under generally accepted accounting principles. Next year on the same basis, analysts expect $1.55.

If they are right, American Express sells for 321/2 times 2009 earnings and 22 times 2010 earnings. That's a generous valuation in today's stingy market.

• Marshall & Ilsley Corp. is the biggest loser in the S&P 500 this year. It is the largest banking company in Wisconsin. Amid rising real-estate lending losses, its shares have fallen 49 percent this year, to $6.97.

The Milwaukee-based company lost $2 billion in 2008, and took $1.7 billion in money from the government's Troubled Assets Relief Program. It has $3.6 billion in nonperforming assets, consisting of $2.4 billion in non-accrual loans, $818 million in restructured loans, and $357 million in so-called other real estate owned, which is basically repossessed buildings.

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Home Depot may Improve as Real Estate Improves

2009-09-10T23:27:00.000-07:00

It may be time to start considering the home-related stocks such as The Home Depot, Inc. (NYSE:HD) or Lowe's Companies, Inc. (NYSE:LOW) as the real estate market may be in the early stages of its recovery. People are buying houses these days, albeit at discounted rates on foreclosures, but they are buying. Once these people are in their homes they tend to want to start fixing up the place, especially after some months of neglect as the previous owners likely did not have money and time to maintain the homes. This could really show up in the sales of companies like Home Depot and Lowe’s.

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Home Depot earned the No. 2 spot on this year's list

2009-09-09T22:34:00.000-07:00

The Home Depot earned the No. 2 spot on this year's list. Its Operation Career
Front program links military spouses to meaningful career opportunities in the
stores, distribution centers and at corporate headquarters in Atlanta. For
associates who are called up to active duty and their covered dependents, The
Home Depot provides continuation of benefits at no cost and supplemental pay
for their length of service. In addition, the company offers job portability,
and military spouses are eligible to take a leave of absence when the active
duty soldier comes home for the "rest and relaxation" period.

Top companies were selected from a pool of approximately 2,500 which earned a
minimum of $1 billion in annual revenues. Companies were evaluated on their
efforts to recruit military spouses, results in recruiting from them and
policies affecting them.

Rounding out the top 10 after USAA - in order of rank - were The Home Depot,
RE/MAX International, West Corporation, Health Net Inc., CSC, Army & Air Force
Exchange Service, Kelly Services, Adecco and TriWest Healthcare Alliance.

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Bank of America, VVUS, ARNA, OREX, ENCO, ISTA, HITK, TITN Popular Stocks

2009-09-09T22:20:00.000-07:00

U.S. stocks rose Wednesday as the Dow Jones Industrial Average climbed 62 points to 9559, the S&P 500 gained 8 points to 1034 and the Nasdaq Composite added 24 points to 2062.

Bank of America Corp. (NYSE:BAC, $17.13, +$0.11, 0.65%), the biggest U.S. bank by assets, said New York Attorney General Andrew Cuomo’s probe of the Merrill Lynch & Co. takeover includes “spurious” allegations about what the bank told investors.

Vivus (NASDAQ:VVUS, $11.79, +$4.88, 70.62%) said Wednesday its weight-loss drug met the primary goals of two late-stage trials. The company said that Qnexa resulted in statistically significant weight loss in all three of its dosage levels, as well as improvements in such risk measures as blood pressure, lipid levels and Type 2 diabetes. Competitors in the race to bring a new therapy to market, Arena Pharmaceuticals Inc. (NASDAQ:ARNA, $4.88, +$0.26, 5.52%) and Orexigen Therapeutics Inc. (NASDAQ:OREX, $8.80, +$0.60, 7.32%), also rose.

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Bank of America, Home Depot Technical Analysis, and Options

2009-09-07T22:08:00.001-07:00

The recent upbeat of Dow Jones industrial sent stock prices to trade in the eight months highs region. For Bank of America (BAC), the minor correction here is not over yet, 20-day moving average seems to be the resistance. The stock prices may fall in the coming trading days, and the support is at the 50-day moving average. Set a watch on 15 December expiry call option which is 3 months expiry options.

An ascending triangle formed for Home Depot (HD). If the stock trades above 27.7, buy 28 call options and set the target to around 30.5.

Bank of America holds more than 10 percent of all deposits

2009-09-05T22:39:00.000-07:00

The newspaper reports that JPMorgan Chase, Wells Fargo and Bank of America now each hold more than 10 percent of all deposits in the country. These banks, plus Citigroup, issue half of all mortgages and two-thirds of all credit card loans. In the past year alone, the ten largest banks have increased their share of bank deposits from 40.6 percent in 2007 to 48.2 percent today.

Major milestones in the consolidation of the banking system over the past 18 months include:

• June 5, 2008: The Federal Reserve approved Bank of America’s takeover of Countrywide Financial, the nation’s largest mortgage company.

• September 15, 2008: Bank of America purchased Merrill Lynch on the basis of a promise by the Fed and the Treasury to give Bank of America $30 billion in guarantees on Merrill Lynch assets.

The growth of the remaining big banks has been staggering. Bank of America grew by more than 138 percent after acquiring Merrill Lynch and Countrywide Financial, according to the Washington Post report. JPMorgan Chase grew by 50 percent after appropriating Bear Stearns and Washington Mutual, and Wells Fargo expanded by 43 percent after snapping up Wachovia. Prior to the crisis, Wells Fargo, JPMorgan Chase and Bank of America controlled 4.4, 7.0 and 9.6 percent of bank deposits, respectively. Now, they control 11 percent, 10 percent, and 12.9 percent.

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Home Depot - Rating Bay Area nurseries

2009-09-05T22:29:00.000-07:00

There were big price differences. For example, for a Chinese evergreen in a 6-inch pot, prices ranged from $4.77 to $25. The big national or regional chains - Lowe's, Home Depot and Orchard Supply - had some of the best prices. Prices at Orchard Supply, for example, averaged 47 percent below the average for all Bay Area nurseries.

But these big chains ranked lower than average for quality of products and advice. Home Depot, for example, was rated "superior" by surveyed customers for quality of products only 28 percent of the time, while 20 of the 140 nurseries Checkbook evaluated got such favorable ratings from 90 percent or more of their surveyed customers.

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Walt Disney buys Marvel Entertainment Of mouse and X-Men

2009-09-04T02:50:00.000-07:00

On August 31st Walt Disney announced it was buying Marvel Entertainment for $4 billion, just days after the comic-book publisher had celebrated 70 glorious ...

NOT even the combined powers of Spiderman, Iron Man, the Incredible Hulk, Captain America and the X-Men could keep The Mouse at bay. On August 31st Walt Disney announced it was buying Marvel Entertainment for $4 billion, just days after the comic-book publisher had celebrated 70 glorious years of independence, during which it had created many of the most famous cartoon characters not invented by Walt Disney itself.

In fact, Marvel did not put up much of a fight, accepting what most analysts think was a generous price. Walt Disney will get access both to Marvel’s creative minds and—potentially far more valuable in an age when familiar stories rule the box office—an archive containing around 5,000 established characters, only a fraction of which have yet made the move from paper to the silver screen.

Marrying Marvel’s characters with Walt Disney’s talent for making money from successful franchises is a good idea. In recent years Walt Disney has proved the undisputed master at exploiting the same basic content through multiple channels, including films, websites, video games, merchandising, live shows and theme parks.

The edgier, darker Marvel characters should fill a hole in Walt Disney’s much cuddlier portfolio. This currently covers most people from newborn babies, through the addictive “Baby Einstein” DVDs (popularly known as “baby crack”), to adults, through its Touchstone label. Walt Disney’s own cartoons, and the newer ones created by Pixar, an animation studio it bought in 2006 for $7 billion, appeal to children. “Hannah Montana”, a hit television show, caters to pre-teen girls. The Marvel characters should be just the thing for boys of the same age, whom Disney has found especially hard to attract of late.

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Wall Street breaks slide before jobs report

2009-09-04T02:41:00.000-07:00

The Dow Jones industrial average tacked on 63 points yesterday after sliding nearly 300 points since the Aug. 27 close. The biggest gains came in the final ...

The biggest gains came in the final half-hour, as some traders looked to buy ahead of the August jobs data, to be released today. Economists expect the unemployment rate to edge up to 9.5 percent from 9.4 percent, while the number of layoffs is expected to slow to 225,000 from 247,000.

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Dow Jones Industrial Trends: A Drop - A Wave - Or Something Else?

2009-09-03T01:06:00.000-07:00

Wall Street is a little skittish these days as traders and investors are worried that the economic news hasn't caught up with the stock market. ...

Stocks posted modest losses Wednesday, a day after tumbling on fears about banks and concerns that a six-month rally of more than 50 percent has left the stock market overheated. The Dow Jones industrial average lost another 30 points after skidding 186 points Tuesday.

A private sector report on unemployment gave investors new reason to fret about what is widely seen as the biggest problem facing the economy. The ADP National Employment Report found that employment fell by 298,000 in August following a revised loss of 360,000 jobs in July. The losses were the smallest since September 2008 but more than analysts had expected.

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US Stocks Close Lower As Fincls, Walt Disney down

2009-09-03T00:24:00.000-07:00

A disappointing report on the jobs picture ahead of two more government reports later in the week weighed on consumer stocks, including Walt Disney and Macy's, while declines for JPMorgan and several other large financials weighed on equities for a second straight session.

Overall, however, stocks closed only narrowly to the downside. The Dow Jones Industrial Average closed off 29.93 points, or 0.32%, at 9280.67, marking its fourth straight day in the red and its longest loosing streak since June 24.

As such, consumer discretionaries were one of the market's weakest sectors, with Walt Disney down 28 cents, or 1.1%, at 25.40, and Macy's losing 41 cents, or 2.7%, to 14.75.

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Put Buying Pops on The Walt Disney Company

2009-09-01T22:31:00.000-07:00

Put volume surged yesterday on The Walt Disney Company (DIS: sentiment, chart, options), with activity ramping up to two times the norm. On the International Securities Exchange (ISE) alone, traders bought to open 1,757 of these bearishly oriented options. By contrast, only 619 calls were bought to open, revealing a clear preference for puts over calls.

However, Walt Disney Schaeffer's put/call open interest ratio (SOIR) is holding relatively steady at 0.70. This indicator has been pinned within a tight range during the past two weeks, bouncing between a high of 0.73 and a low of 0.68. Not even the effects of August options expiration were sufficient to shove the SOIR out of this complacent territory, suggesting that there's been no major sentiment shift among short-term option traders.

The action at Walt Disney October 26 put was less ambiguous. This back-month strike saw volume of 1,705 on open interest of 3,135, and open interest jumped today to 4,104 contracts. Following Monday's surge of activity, implied volatility on this option rose by 2.8%, which points to rising demand.

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Disney To Buy Marvel Enterprises For $4 Billion

2009-08-31T17:43:00.000-07:00

CNNMoney.com - The Walt Disney Co. (DIS) said Monday it agreed to buy Marvel Entertainment Inc. (MVL), the creator of Spider-Man, the X-Men and thousands of other characters, for about $4 billion in the company's largest acquisition since it bought Pixar Animation Studios in 2006.

The deal opens a new chapter in Disney's long history, adding a slew of new, globally recognized movie characters - such as Iron Man, Spider-Man, X-Men, Captain America, Fantastic Four and Thor - to its deep bench of classic and contemporary icons. It also adds countless lesser-known storylines and characters that Disney hopes to introduce to the world.

Disney Chief Executive Robert Iger said during a conference call Monday that Marvel was an attractive target for Disney despite the challenges facing the media industry, such as the decline of DVD sales, that has hurt profitability at major film studios.

Disney shares were down 3.9% at $25.80 while Marvel shares jumped 25% to $ 48.32. Shares of DreamWorks Animation SKG Inc. (DWA) were up 5% to $33.25 on the prospect of more acquisitions in media and entertainment.

The Disney-Marvel marriage fits with the strategy du jour for major media conglomerates such as Disney and Time Warner Inc. (TWX) of driving revenue from popular content over time across the globe and multiple technology and entertainment platforms.

Disney has a unique array of businesses to execute the strategy with its global sales and distribution infrastructure, its theme parks, its video game and merchandising businesses and its cable and broadcast TV networks. For its part, Marvel is a particularly attractive target for the company given its appeal to younger male audiences, while Disney has shown outsized strength with females through properties like Hannah Montana and the Jonas Brothers.

High Price For Premium Assets

"You can't expect to pay a bargain price for premium assets," said Disney Chief Financial Officer Tom Staggs. "Marvel is worth more inside Disney than outside Disney."

During the conference call following the announcement, Staggs said the company will issue roughly 59 million Disney shares in order to consummate the deal, but the company plans to repurchase the same number of shares over the next year to avoid long-term dilution to its existing shareholders.

Staggs said he expects the deal to be dilutive to Disney shareholders in its fiscal 2010 by a a mid-single-digit percentage, but he expects it to be accretive to shareholders within two years.

The companies said the amount of cash and stock in the deal will be adjusted at closing so that the value of the Disney stock is at least 40% of the purchase price. Besides shareholder backing, the deal will require antitrust approval.

Moody's Investors Service affirmed its rating on Disney's debt despite the high cost of the deal, but said that its willingness to spend on acquisitions despite the uncertain economic outlook is inconsistent with the actions of its peers. The credit rating agency said that Disney is a weak A2-rated credit, but noted that the strategic benefit of the Marvel purchase and the ability to generate free-case flow should help improve the company's debt profile.

Value Hunting

2009-08-31T17:35:00.000-07:00

Spotting deals among the rubble is a favorite pastime of value investors. Today we highlight a few industries that may offer some opportunity given their ability to operate admirably in a most difficult time.

Warren Buffet demonstrates “Berkshire’s Corporate Performance” as book value growth. This is essentially the change in Berkshire Hathaway’s retained earnings over time, which in effect shows his ability to generate and keep earnings within his company. In his annual reports he compares these figures to the performance of the S&P 500 from 1965 to today. As you likely know, he’s been pretty good at it.

The recession has predictably hurt the “Corporate Performance” of many companies, including Mr.. Buffet’s. According to my analysis, the average company in the S&P 500 has seen a decline in book value of -12% from peak book values at the beginning of the recession, which compares to -5% for Mr. Buffet’s Berkshire Hathaway. Note that we are comparing book value to book value in this case. This may seem less than expected given a stock market price decline of -35% since September 2007. However, note that many, if not most, companies are still making money albeit a decline in revenue growth, which generally adds to its book value.

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Jayne Parker Named Executive Vice President and Chief Human ...

2009-08-31T02:23:00.000-07:00

Jayne Parker has been named Executive Vice President and Chief Human Resources Officer for The Walt Disney Company (NYSE: DIS), it was announced today by Robert A. Iger, president and CEO, The Walt Disney Company. Ms. Parker will report to Mr. Iger and be responsible for areas that include leading Disney’s overall human resources strategy including global talent attraction, staffing and retention, leadership development, diversity, organizational design and cultural development, employee education and development, compensation and benefits and employee relations. The heads of human resources in Disney’s business units will report to Ms. Parker as well as to the leaders of their respective business units.

“Jayne demonstrated clear leadership and innovation while overseeing human resources, diversity and inclusion for Disney Parks and Resorts’ nearly 100,000 employees worldwide,” said. Mr. Iger. “I’m delighted that she will now apply her results-oriented practices to our entire organization in order to attract, motivate and retain experienced, knowledgeable and creative employees.”

“Disney is successful because of its people – their commitment, their creativity and their passion. I have thoroughly enjoyed my time with the Parks and Resorts division and am honored to now work on behalf of all Disney cast members and employees to continue to attract diverse talent and develop future leaders for all of our businesses,” said Ms. Parker.

Previously, Ms. Parker served as the Senior Vice President of Human Resources, Diversity and Inclusion for Walt Disney Parks and Resorts worldwide. In this position, she had responsibility for all human resources-related services for nearly 100,000 Cast Members, Crew Members and Imagineers globally, including: employee/labor relations, diversity and inclusion, compliance, recruitment, talent planning, learning and development, organizational development, compensation, benefits and workforce planning. She led a team focused on developing and implementing strategies that drove business results, created a positive work environment and experience for Cast, Crew and Imagineers and increased levels of employee engagement. She also served as a member of the Walt Disney Parks and Resorts Executive Committee.

Prior to that, Ms. Parker was Senior Vice President, Human Resources, leading the HR organization that supported Walt Disney Parks and Resorts domestic businesses (Walt Disney World, Disneyland Resort, Disney Cruise Line and Disney Vacation Club). Ms. Parker played an integral role in the development of the global Walt Disney Parks and Resorts organization and in establishing and leading a domestic HR organization that strategically supported the Parks and Resorts business and successfully drove results.

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Disney's properties continue to flex their monetary muscle

2009-08-31T02:13:00.000-07:00

Walt Disney (NYSE: DIS) is a strong international performer in most economic climates. The star performer in its third quarter was the media networks division. ESPN, ABC and the Disney Channel collectively held their ground year over year, losing just 2 percent of their sales. With the broadcasting industry fighting online piracy, reticent advertisers and worries that TiVo boxes and other DVRs will kill traditional TV advertising, that performance is an impressive show of Mouse muscle.

All told, revenue fell 7 percent from 2008 levels to $8.6 billion, and net income was down 23 percent. Still, that’s $954 million of earnings and $881 million in free cash flow, straight into the bank. Disney remains a true cash machine, even at the worst of times. Disney’s solid brands and near-constant stream of fresh, high-quality entertainment content drives this strength.

The upcoming slate of Disney movies inspires confidence. “The Princess and the Frog” looks like a return to Disney’s Brothers Grimm-style storytelling roots. The star-studded live-action remake of “Alice in Wonderland” at the hands of real-life Mad Hatter Tim Burton ought to draw a crowd. And then there’s the third installment of “Toy Story” next year. ’Nuff said.

Disney appears to be doing all the right things to stay healthy.

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Holiday Inn at Walt Disney World Resort on track for fall opening

2009-08-30T21:53:00.000-07:00

Holiday Inn in the Walt Disney World Resort is on track to open this fall as the only Holiday Inn hotel on Disney property near Orlando. The hotel showcases the brand’s new sign, which represents the "seal of approval'' that it exemplifies the new brand standards of the Holiday Inn brand relaunch.

In addition to the new amenities, families can save as much as much as $81.98 per night through free food and services when they stay at the Holiday Inn in the Walt Disney World Resort.

The Holiday Inn in the Walt Disney World resort is an example of the $1 billion Holiday Inn brand relaunch program with a contemporary design, increased quality, refreshed guestrooms and the best-in-class service. The hotel is in walking distance of the Downtown Disney Marketplace and offers many Walt Disney World Resort perks, such as complimentary transportation every 30 minutes to all Walt Disney World theme parks and guaranteed access and preferred tee times at Walt Disney World golf courses.

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Stock Market Trading Software...Up Or Down You Make Money

2009-08-30T21:43:00.000-07:00

These Fundamentals Aren’t Technical

I believe in order to lay a solid foundation for successful trading, there are three basic fundamentals you must adhere to. The first is knowledge. There are only three things really that separate us from an expert. Training and experience comes after knowledge. Knowledge comes first, and expertise is accomplished through experience and constant training. So, how knowledgeable are you? Let us assume that you have some knowledge or you wouldn’t be researching the market. Do you know the difference between day trading and swing trading? To me there is a major difference. Many so-called experts lump all online traders into the bag of day trading. For the sophisticated observer it is plain to see the obvious differences. A day trader rides the rush of the asset, while a swing trader diagnosis the trends and holds onto it as long as the momentum last. Knowing these subtle nuances will determine what kind of software you need.

Use Software for Your Advantage

A Solid Platform to Build Your Wealth
Now based upon the idea that my assumptions are accurate, and you are still with me, as far as software platforms, the following suggestions I strongly feel are necessary for any software to be useful.

1. It must be able to offer live streaming technical data. (Otherwise the program is merely educational)
2. The platform should defiantly include candlestick charting.
3. Visually it has to be large enough for all the data to be seen easily. (Many of the online brokerage’s technical data is to small to be useful)
4. It must be cost effective. (Most good systems can be purchased for between one to two hundred dollars)

More on Candlestick Charting

A Candle Burns Bright in Your Future
For those of you not yet familiar with candlestick charting, I will
try to give a brief but accurate explanation. The Chinese invented the market concept, and the Japanese perfected charting techniques with the use of the candlesticks. It is easy to understand this complex system, if we simply break it down to the ticks on the chart you follow every day. We know that the lower tick is where the stock opened and the higher is where it closed. Now if we made the two lines parallel and connected them, what would we have? A candle. However, during that movement, the stock might have gone lower or higher then where it opened or closed, so our candle has formed a tail and a wick. Is it starting to make a little sense to you? Can you see the advantage of knowing this information, for getting in and out, and setting a stop loss?

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Technical Analysis: Essential Dials To Watch

2009-08-30T02:49:00.000-07:00

If the stock market takes an extended period of time to make new highs, buy-and-hold investing will be a heartbreaker for a while. In today's market, successful investing means becoming a dexterous trader who is able to get a good sense of how the price action is moving in a market--somebody who knows a bit about technical analysis.

Fundamental analysis certainly has had its challenges in the past year arriving at consistent values for stocks. Technical analysis, because it focuses on price and volume changes, incorporates all known information.

Technical analysis has become so popular--and technicians are such a pervasive segment of the market--that many successful traditional fundamental analysts realize and incorporate the impact of technical trading rules into their own analysis. Technical indicators, when used in the context of sound common sense, are invaluable trading tools that can help guide and focus every trade.

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US Stocks Advance on Better-Than-Estimated Economic Reports

2009-08-29T23:28:00.000-07:00

U.S. stocks rose for a second week as better-than-estimated consumer confidence, housing data and technology company earnings suggested the recession is ending.

Stocks fell yesterday, led by companies whose earnings benefit least from economic growth. Boeing Co. rallied the most in the Dow Jones Industrial Average this week after saying the 787 Dreamliner will fly this year. Intel Corp. gained after increasing its forecast. Utilities, consumer goods sellers and health-care companies accounted for three of the five steepest drops among the 10 groups in the Standard & Poor’s 500 Index.

The S&P 500 advanced 0.3 percent to 1,028.93, climbing to a 10-month high on Aug. 27. The Dow Jones Industrial Average added 38.24 points, or 0.4 percent, to 9,544.20. The Nasdaq Composite Index increased 0.4 percent to 2,028.77.

Boeing, the second-biggest maker of commercial aircraft, surged 11 percent to $51.04. Customers will receive 787 Dreamliner planes in the fourth quarter of 2010, and the project will be profitable following a $2.5 billion third-quarter charge, Boeing predicted. The new delivery target is about 2 1/2 years behind schedule.

Boeing also gained after orders for U.S. goods meant to last several years jumped in July by the most in two years.

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Dow 101 Five Little-Known Facts About the Dow Jones

2009-08-29T02:42:00.000-07:00

Dow 101
Five Little-Known Facts About the Dow Jones Industrials Average

by Tasha Vincent

The Index is not Truly Industrial

Though its name would lead you to believe it is composed of only industrial companies, in fact the DJIA contains stocks across many "industries," not all of which are "industrial."

The industries represented include financial, food, technology, retail, heavy equipment, oil, chemical, pharmaceutical, consumer goods, and entertainment. Dow Jones also collects and reports data for two other sectors of the economy in its Transportation and Utilities indices.

The DJIA Represents Only 30 Stocks

To be chosen for inclusion in the index, a stock must be a leader in its industry and must be widely held by both individual and institutional investors (i.e., pension plans, mutual funds, etc.). Together, the 30 stocks in the average represent about 20% of the market value of all U.S. stocks, so although the DJIA is not the whole stock market, it is certainly representative of the stock market as a whole.

The DJIA is not really an "Average"

A simple average is calculated by adding up a value for a number of items, then dividing by the number of items. The Dow reflects the value of stock prices, but a simple average cannot accurately reflect the value of stock prices.

Here's why. When stocks become pricey, companies routinely announce stock splits to make their stocks more appealing to individual investors.

For example, a company may have 100 shares outstanding priced at $100 per share, for a market value of $10,000. If the firm announces a 2-for-1 split, the price is cut in half, and the number of shares is doubled, so there would be 200 shares outstanding, priced at $50 per share. The market value is still $10,000, but the price point is now more attractive to smaller investors.

To take into account the changes in price associated with stock splits, the Dow Jones Industrial "Average" is adjusted to account for any stock splits in each of the included companies. Here is a table of recent milestones in the average.

The Following 30 Companies Currently Comprise the Dow Industrials (as of 2/31/08):

3M
Alcoa
American Express
American International Group
AT&T
Bank of America
Boeing
Caterpillar
Chevron Corporation
Citigroup
Coca-Cola
DuPont
ExxonMobil
General Electric
General Motors
Hewlett-Packard
Home Depot
Intel
International Business Machines
Johnson & Johnson
JPMorgan Chase
McDonald's
Merck
Microsoft
Pfizer
Procter & Gamble
United Technologies
Verizon Communications
Wal-Mart
Walt Disney

Who is Dow Jones?

Charles Dow and Edward Jones are two-thirds of the team that founded Dow Jones & Company in 1882. Charles Bergstresser was the "& Company," but by 1889 he was joined by 47 others as the company grew. They specialized in newsletters (the precursor to The Wall Street Journal) focusing on financial news. When Dow died in 1902, Clarence Barron, originally hired as a correspondent, purchased a controlling interest in the firm.

Intel boosts revenue forecast, shares rise

2009-08-28T19:52:00.000-07:00

Intel boosts revenue forecast, shares rise

Chip giant cites stronger-than-expected demand for PC semiconductors

Shares of Intel , part of the Dow Jones Industrial Average, jumped more than 4% in pre-market trading. Shares of other chip makers, including Advanced Micro ...

Shares of other chip makers, including Advanced Micro Devices Inc. (AMD 4.45, -0.02, -0.45%) , also rose. AMD, Intel's archrival, was up 5.7%.

Santa Clara, Calif.-based Intel said it now expects revenue of $9 billion, plus or minus $200 million, for the September quarter. Previously, the company said it expected revenue of $8.5 billion, plus or minus $400 million.

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US STOCKS-Futures gain on oil, Dell; consumer data on tap

2009-08-28T19:14:00.000-07:00

U.S. stock futures rose on Friday fueled by higher oil prices and a better-than expected quarterly performance by computer maker Dell Inc (DELL.O).

* Shares of Dell, the world's No. 2 personal computer maker, rose 3 percent in premarket trading, a day after posting a stronger-than-expected profit and saying it cut costs and protected prices. For results details see [ID:nN27317400].

* Crude oil futures gained 1 percent after data showed the British economy shrank less than expected in the second quarter, following on a smaller-than-forecast drop in U.S. gross domestic product. [ID:nLS658169]

* S&P 500 futures SPc1 rose 6.1 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures DJc1 gained 35 points and Nasdaq 100 futures NDc1 added 9 points.

* Shares of Apple Inc (AAPL.O) jumped 1 percent before the bell after China Unicom, (CHU.N)(0762.HK) China's No. 2 mobile carrier, agreed to sell the iPhone in China, giving Apple access to the world's largest mobile market. [ID:nHKF082431]

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iphone "Augmented" Reality: Starbucks and mcdonald's in Paris

2009-08-28T18:46:00.000-07:00

The same applies to the nearest points of interest (pois) such as those in the screenshot above: mcdonald's, taxi stands and Starbucks coffee locations. ...

Meltdown 101: Is there anything special about the Dow industrials ...

2009-08-28T18:30:00.000-07:00

The first time the Dow Jones industrial average entered five-figure territory, corporate bigwigs tossed hats that said “Dow 10000″ to cheering traders on the floor of the New York Stock Exchange. That was a decade ago. ...

The Dow stands about 500 points shy of the 10,000 mark, putting the milepost on investors’ radar for the second time in a year ...

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REFILE-US STOCKS-Wall St gains as oil jumps; Boeing leads Dow

2009-08-27T18:25:00.000-07:00

The Dow Jones industrial average gained 37.11 points, or 0.39 percent, to end at 9580.63. The Standard & Poor's 500 Index added 2.86 points, ...

The Dow posted its eighth straight gain, led by Boeing Co (BA.N), which rose 8.4 percent to $51.82. The U.S. aircraft manufacturer said its long-delayed 787 Dreamliner would make its first flight by the end of the year.

The Dow Jones industrial average gained 37.11 points, or 0.39 percent, to end at 9,580.63. The Standard & Poor's 500 Index added 2.86 points, or 0.28 percent, to 1,030.98. The Nasdaq Composite Index rose 3.30 points, or 0.16 percent, to 2,027.73.

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US stocks end up; Dow streak at 8 sessions

2009-08-27T18:22:00.000-07:00

U.S. stocks on Thursday finished with modest gains in thin volume, with the Dow Jones Industrial Average extending its winning streak into an 8th consecutive day, its longest such run since April 2007. The Dow Jones Industrial Average (INDU 9,581, +37.41, +0.39%) added 37.11 points, or 0.4%, to 9,580.63.

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CURRENCIES: Dollar Slumps As Stocks Bounce Back

2009-08-27T18:17:00.000-07:00

In thin trading volumes, the Dow Jones Industrial Average (DJI) gained nearly 40 points, helped by big gains in shares of Boeing (BA). ...

Stocks gained ground after the U.S. sold $28 billion in 7-year notes, capping $227 billion in sales this week.

In a very volatile session, the dollar index (DXY), which tracks the greenback against a trade-weighted basket of six major currencies, stood at 77.997, down from 78.660 late Wednesday.

The dollar traded at 93.36 Japanese yen, down from 94.22 yen Wednesday.

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Stocks eke out small gains, Dow higher for 7th day

2009-08-26T23:46:00.000-07:00

By Sara Lepro

NEW YORK:Stocks finished a choppy day of trading Wednesday mostly higher following positive reports on home sales and factory orders.

The Dow Jones industrials rose for the seventh straight day, marking another new high for the year. All the major stock indicators finished in positive territory, but the gains were minuscule.

An increasingly cautious mood has gripped the market in recent days, following a period of fervid buying this spring and summer that sent stocks up more than 45 percent since early March. While economic data is improving, investors are now questioning whether the market can go much higher without clear evidence of economic growth.

"The general consensus seems as though the market is ripe for some sort of pullback at some point," said Andrew Frankel, co-president of Stuart Frankel & Co. "We seem to be floating up on air."

With trading volume and news flow tapering down amid Wall Street's annual summer slowdown, analysts say there are few near-term catalysts that could spur the market higher.

Stocks seesawed without a clear direction Wednesday despite a Commerce Department report that said new home sales rose 9.6 percent in July for the fourth straight monthly increase. Sales rose to 433,000, the strongest pace since September and well above the 390,000 figure economists expected.

The latest sign of improvement in housing also didn't do much to impress investors, who have already factored in a recovery in the long-suffering home industry. Some of the latest gains can be attributed to a federal tax credit for first-time home owners currently set to expire in November, and the industry has been pressing Congress to extend it.

Separately, the Commerce Department said orders for goods expected to last at least three years rose 4.9 percent in July — the biggest jump in two years and more than the 3 percent increase economists had expected.

However the overall increase was driven by a surge in orders for transportation equipment, which benefited from the government's recently expired Cash for Clunkers program that drove thousands of people to trade in older cars for new ones. Excluding transportation goods, orders rose 0.8 percent, just short of analysts' expectations.

According to preliminary calculations, the Dow Jones industrials rose 4.23, or 0.04 percent, to 9,543.52. The Standard & Poor's 500 index rose 0.12, or 0.01 percent, to 1,028.12, while the Nasdaq composite index rose 0.20, or 0.01 percent, to 2,024.43.

Dow Jones Indexes Worth $650 Million?

2009-08-26T23:40:00.000-07:00

The Dow Jones Indexing business could fetch up to $650 million, according to a new report by Wells Fargo analyst John Janedis.

The business had operating income of $55 million for the 12 months ending June 2009.

How much might Rupert Murdoch and News Corp. get for the iconic Dow Jones Index business?

With reports that the business is on the block, Wells Fargo Securities LLC analyst John Janedis suggests the Dow Jones Indexes are worth $600 million to $650 million in a Monday note. He bases the valuation on estimates of $55 million in operating income for the 12 months ending June 2009 and $60 million to $65 million in Ebitda during the period.

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AAA expects 6 million fewer travelers this Labor Day, ...

2009-08-26T23:36:00.001-07:00

Despite AAA's prediction that six million fewer people will travel this Labor Day compared to last year--added to the presence of Tropical Storm Danny in the Atlantic Ocean--Disney World should see a busy close to the 2009 summer travel season.

AAA expects the later date for Labor Day--September 7 this year instead of September 1 last year--to deter family travel. Many schools across the nation will have already started by September 7, complicating travel plans. According to the Orlando Sentinel, AAA predicts that 39.1 million Americans will travel by automobile or airplane over the five-day, Thursday to Monday Labor Day holiday period, whereas 45.1 million Americans traveled over the Labor Day holiday last year.

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Dell Computer short term downtrend

2009-08-26T01:04:00.000-07:00

A topping shadow and a dark candle represents bearishness. This may only be a short term trend.

Component Changes Made to Dow Jones Select Dividend Indexes

2009-08-25T02:37:00.000-07:00

Dow Jones Indexes announced component changes in the Dow Jones Global Select Dividend, Dow Jones EPAC Select Dividend, Dow Jones Asia/Pacific Select Dividend 30, Dow Jones Australia Select Dividend 30 and Dow Jones Hong Kong Select ...

In the Dow Jones Global Select Dividend Index, Qantas Airways Limited (Australia, Travel & Leisure, QAN.AU) will be replaced by Telekom Austria AG (Austria, Telecommunications, TKA.VI).

In the Dow Jones EPAC Select Dividend Index, Qantas Airways Limited (Australia, Travel & Leisure, QAN.AU) will be replaced by A2A S.p.A. (Italy, Utilities, A2A.MI).

In the Dow Jones Asia/Pacific Select Dividend 30 Index and Dow Jones Australia Select Dividend 30 Index, Qantas Airways Limited (Australia, Travel & Leisure, QAN.AU) will be replaced by Brambles Limited (Australia, Industrial Goods & Services, BXB.AU).

In Dow Jones Hong Kong Select Dividend 30 Index, PCCW Limited (Hong Kong, Telecommunications, 0008.HK) will be replaced by Yanzhou Coal Mining Company Limited (Hong Kong, Basic Resources, 1171.HK).

Will China Buy Dow Jones?

2009-08-24T08:39:00.000-07:00

Wall Street Journal reported in its website that Dow Jones has been talking to potential buyers about the sale of its stock-market indexing business, which includes the Dow Jones Industrial Average. ...
And I bet the US will begin howling with rage if the Chinese buy the Dow Jones. Well, this is another warning shot across our prow, isn’t it? ...

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Green group targets mcdonald's plastic giveaways

2009-08-24T08:31:00.000-07:00

A Hong Kong green group on Monday called for a levy on disposable cups and cutlery after revealing mcdonald's had given away around 400 million ...
The environmental group based its estimate on a survey which had tracked 50 of the McDonald's Hong Kong outlets since 2006.
However McDonald's had failed to adopt any of the suggestions made by Green Sense, said Sun.
A McDonald's spokeswoman denied it had been unwilling, ...

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Dow Jones Seeks Stock-Index Unit Buyer

2009-08-24T07:38:00.000-07:00

New York-based media company, News Corporation, is looking to sell its Dow Jones stock-market indexing business, The Wall Street Journal reports. Goldman Sachs has been appointed to manage the process.

Bloomberg, FTSE, NYSE, MSCI Barra, Russell, Thomson Reuters and McGraw-Hill have been identified as the potential buyers for the business. The company bought Dow Jones for $5.7 billion in 2007 but was forced to write down $2.8 billion of the purchase price.

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US stock futures point to higher Wall St open

2009-08-24T03:01:00.000-07:00

U.S. stock index futures indicated a stronger start on Wall Street Monday, extending the previous session's gains after stronger U.S. housing data and optimistic comments from Federal Reserve Chairman Ben Bernanke lifted sentiment.

At 4:15 a.m. ET, futures for the S&P 500, the Dow Jones industrial average and the Nasdaq Composite were up 0.4-0.6 percent.

A Democrat senator is expected Monday to ask the Securities and Exchange Commission to review the stock market's structures, Dow Jones Newswires reported, reviving a debate over the market impact of computer-based trading.

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Long Call on DIS: Walt Disney Co

2009-08-23T17:15:00.000-07:00

We have a resistance at 26.86. If the stock continues to trade above 26.86, we can enter a at-the-money long call option. We can select October expiry call option.

Disney 101: Are there any new activities for boys at Walt Disney ...

2009-08-22T22:24:00.000-07:00

Disney World, which recycles about a third of its waste, now teaches families about recycling. One of Epcot's newest interactive attractions is all about ...

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Walt Disney World 101: How do I call 911?

2009-08-22T22:21:00.000-07:00

The Reedy Creek Fire Department has stations throughout Walt Disney World, which offer emergency services on property. This station is located across from ...

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Remake of the Beatles "Yellow Submarine" May Be on the Horizon

2009-08-22T22:18:00.000-07:00

Robert Zemeckis has hopes of remaking the animated movie "Yellow Submarine" with the help of Disney.

Robert Zemeckis, known for productions like "Beowulf" and "The Polar Express," is looking to recreate the Beatles' 1968 "Yellow Submarine" animated feature film for the use of Walt Disney Studios.

Disney has yet to comment on the deal, as they are still trying to obtain the rights to the music from the film. Like Zemeckis' other films, "Submarine" would be animated in digital 3D.

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Stocks Rally on Housing Data

2009-08-22T22:03:00.000-07:00

Indexes reached their best levels of the year on Friday. Next week's watch list includes data on new home sales, durable goods orders, and personal income.

On Friday, the 30-stock Dow Jones industrial average finished higher by 155.91 points, or 1.67%, at 9,505.96. The broad Standard & Poor's 500-stock index was up 18.76 points, or 1.86%, to 1,026.13. The tech-heavy Nasdaq composite index added 31.68 points, or 1.59%, to 2,020.90.

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Markets rise on US recovery hopes

2009-08-22T21:57:00.000-07:00

World stock markets have risen after US central bank chief Ben Bernanke said the world’s biggest economy was nearing the start of a recovery.

“The prospects for a return to growth in the near term appear good,” Mr Bernanke told a conference in Wyoming.

On Wall Street, the Dow Jones index rose more than 1%, while European markets were also sent higher.

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Dow Jones&Co. seeking potential buyers for indexing business: report

2009-08-22T21:53:00.000-07:00

NEW YORK - The Dow Jones industrial average could get a new name.
The Wall Street Journal reported Friday that its publisher, Dow Jones&Co., is considering selling its stock-market indexing business and has reached out to potential buyers. A sale of the unit would open the door for the new owner to rename the 125-year-old Dow Jones industrial average, one of the world's best-known stock-market benchmarks.

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News Corp. Holds Talks to Sell Dow Jones Indexes Unit

2009-08-21T23:56:00.000-07:00

The News Corporation is in talks to sell its Dow Jones stock-market index business, potentially separating the famous Dow Jones Industrial Average from the newspaper that has long controlled it, The Wall Street Journal, people briefed on the matter told DealBook.

A leading contender to buy the business is MSCI Incorporated, a former Morgan Stanley unit that also builds indexes, one of these people said. It is not clear when a deal would be struck, and the talks may not lead to a transaction.

Dow Jones retained Goldman Sachs to run the sales process, these people said. Representatives for Dow Jones, Goldman Sachs and MSCI declined to comment.

The talks have been taking place nearly two years after News Corp. bought Dow Jones.

The managing editor of The Journal has traditionally chosen which 30 stocks are included in the Dow Jones Industrial Average. It is not clear whether that relationship - or the name of the index - might continue under new ownership.

Dow Jones Indexes publishes thousands of indexes, from broad samplings of national and continental stock markets, to gauges of smaller national stock markets, specific industries’ stocks, hedge funds, bonds - even specific commodities in specific parts of the world.

Financial professionals pay for the data, and it is a lucrative business, though News Corporation has not made any figures public. In Dow Jones’ last financial filings as an independent company, it said that a segment including the indexes and some much smaller businesses generated $101.3 million in the first nine months of 2007, up 18.3 percent from the year before. Executives with Dow Jones at that time have said that the profit margin for the indexes was around 40 percent.

Rupert Murdoch, the chairman of News Corporation, agreed to pay more than $5 billion for Dow Jones, about $2 billion above its previous market value, primarily to acquire The Journal. Newspaper industry revenue was already falling, and since then, media businesses - particularly newspapers - have slipped into their deepest slump in generations.

News Corporation has written down most of the purchase price of Dow Jones.

When it took over Dow Jones, News Corporation intended to sell another part of that company, the Ottaway chain of small newspapers, but could not find a buyer.

– Richard Perez-Pena and Michael J. de la Merced

Walt Disney (DIS) 8/21/09 PriceWatch Alert Up To 22.91% Return

2009-08-21T19:21:00.000-07:00

Walt Disney (NYSE: DIS) closed yesterday at $25.89. So far the stock has hit a 52-week low of $15.14 and 52-week high of $34.85. Walt Disney stock has been ...

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Travelto Walt Disney World 1.6.2 (Mobile)

2009-08-21T19:19:00.000-07:00

Travelto Walt Disney World contains travel-related information from Websites contributed by the public. Thus, you can get local experiences and knowledge ...

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D23 Expo: Backstage Disney 101 – A kingdom beneath a kingdom

2009-08-21T19:15:00.000-07:00

Did you know that there's a kingdom beneath the Kingdom at Walt Disney World? However, the only guests who traverse these lands are the Disney Cast Members ...

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Walt Disney's Anne Sweeney moving up in Forbes' world

2009-08-21T19:13:00.000-07:00

When Forbes magazine released its annual "100 Most Powerful Women" list Wednesday, one of the more curious showings was that of Walt Disney Co. ...

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Donald Duck not alone at Walt Disney World: Mallards proliferate ...

2009-08-21T19:05:00.000-07:00

Yet it is impossible to separate Walt Disney World from its natural surroundings in Central Florida. Native birds, insects, reptiles, fish,

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Shares of Texas Industries rise as it clashes with Disney private equity group

2009-08-21T19:01:00.000-07:00

Shares of Texas Industries Inc. rose Friday as it clashed publicly with a private equity fund founded by a nephew of Walt Disney. ...

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What do Buffett, Keynes, and Fleckenstein Have in Common?

2009-08-20T22:17:00.000-07:00

The momentum crowd that tends to rule the short term direction in stock trading didn't seem to catch Mr. Buffett's strong hint that, left unchecked, the massive fiscal and monetary responses sponsored by Uncle Sam to date will someday ...

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US Stock-Index Futures Rise; Alcoa, General Electric Climb, Sears ...

2009-08-20T22:15:00.001-07:00

Alcoa rose 1.7 percent to $12.69 in German trading as copper, lead and nickel all gained on the London Metal Exchange. General Electric, the world's biggest ...

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Stock futures point to higher Wall Street open

2009-08-20T22:13:00.000-07:00

Overseas, Japan's Nikkei stock average rose 1.8 percent. In afternoon trading, Britain's FTSE 100 was up 1.3 percent, Germany's DAX index was up 1.2 percent ...

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August 17 09 Stock Trading using Technical Analysis

2009-08-19T23:26:00.000-07:00

August 17 09 Stock Trading using Technical Analysis ... Emini Trading 08 17 2009 · Forex Swing Trading versus Stock Option Swing Trading · Dukascopy Forex ...

Who Do You Recommend As The Best Online Stock Broker For DIY Day ...

2009-08-19T23:24:00.000-07:00

Online trading has lowered commissions to the point where they are no longer the primary consideration. Ditto for good execution, if indeed they are Direct Access. If you decide later to trade commodities, options, futures, ... Some people consider it the Cadillac of trading and technical analysis. TerraNova is the home of the Day Trader, so they think nothing of you making several hundred trades a day. You don't have to do that, but it's okay here if you do. ...

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Sell on the trumpets

2009-08-19T23:22:00.000-07:00

While I'm not a big fan of technical analysis, I'll take any clue I can get at the moment. And I'll pay extra attention, because a number of technical ...

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An Interview With Barron's Mike Santoli

2009-08-19T23:18:00.000-07:00

I'm friendly with and frequently quote the technical strategist John Roque who takes an integrated approach to technical analysis. ...

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A descending triangle formed for McDonald's Corp.

2009-08-18T23:45:00.000-07:00

A descending triangle formed for McDonald's Corp. on August 18, 2009. The probabilities favor the continuation of downward trend.

S&P 500 Stock Market Trends

2009-08-18T23:23:00.000-07:00

Trend following is a proven strategy to beat the market and grow your stock portfolio. Technical analysis provides the tools to analyze and identify trends in the stock market. Since the S&P 500 chart is the one used by professional ... techniques including trailing stops, protective put, covered call options and position sizing. When the pull back ends, look to add to long positions with stocks and ETFs from the sectors that are likely to outperform the overall market. ...

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August 17 09 Stock Trading using Technical Analysis | Public ...

2009-08-18T23:17:00.000-07:00

August 17 09 Stock Trading using Technical Analysis · Part 2 Options and Stock Market Technical Chart Analysis for August 17 2009 by Idan Koren ...

The Three Bears Who Forecast the Goldilocks Stock Market

2009-08-18T23:08:00.001-07:00

The VIX may be ready for its breakout.

The NDX consolidation may be over.

The Oil Bubble is letting out air.

Charles Nenner, former Goldman Sachs market timing analyst, uses cycles, technical analysis, and a macro approach to time myriad markets. ...

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Berkshire Buys Becton Stock in Medical Products Bet

2009-08-17T23:05:00.000-07:00

The stock rose $1.11, or 1.7 percent, to $67.50 at 8:03 am in early trading in New York today. Liz Ryan Sax, a spokeswoman for Becton, had no comment. ...

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Stock futures point to plunge on Wall Street

2009-08-17T23:01:00.001-07:00

Stocks looked to plunge at the opening of trading Monday and Treasury prices soared as investors around the world feared that consumers are too anxious to ...

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All that glitters / The bears come out of the wood

2009-08-17T22:59:00.000-07:00

Moreover, he suspects, based on technical analysis, that declines will dominate the stock market in the years to come. "The extreme overvaluation, the manic ...

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GE Bringing Socialism and other Bad Things to Life

2009-08-15T23:35:00.001-07:00

GE's stock price has gone from $39/share when he took over to less than $12/share, underperforming the Dow Jones Industrial by nearly 60% (price return). Despite the above-mentioned environment Immelt had to deal with, ...

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Stocks Finish the Week Down as Reports Dull Optimism

2009-08-14T21:45:00.000-07:00

The Dow Jones industrial average, an index of blue-chip stocks, was down 0.8 percent, or 76.79 points, to 9321.40, while the tech-heavy Nasdaq composite ...

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No clear direction for Dow Jones Industrial

2009-08-14T21:28:00.001-07:00

Dow Jones closed 9,321.40 on Friday August 14, 2009. Apparently, we have a resistance at around 9,450 with the lack of demand indicated by the declining volume. I would recommed to wait for the index to fall below the 20 day moving average before making a decision for a long trade.

Understanding Options Symbols - Money Management, Financial Markets

2009-08-14T06:03:00.000-07:00

Keep in mind that the root options symbol is not always the same as the underlying stock ticker symbol. For example, NASDAQ stock symbols are a minimum of four letters, whereas the base symbol of an option is three letters or less. ... Daily and weekly commentary from the world's largest provider of technical analysis of stocks, bonds, currencies, metals, energy complexes and commodities plus social perspective and economic forecasts on inflation and deflation, etc. ...

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Retail Sales Give Investors Reason to Pause

2009-08-14T05:14:00.000-07:00

The Dow Jones industrial average was 36.58 points, or 0.39 percent, higher at 9398.19, while the Standard & Poor's 500-stock index was up 6.92 points, ...

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Stocks rally on Fed's word that the economy is leveling off ...

2009-08-13T07:53:00.001-07:00

However, the stock market shrugged off the news, with the Dow Jones Industrial Average keeping its summer rally going, closing up 119.93. The next Federal Reserve meeting is Sept. 22 and 23. By this fall, the Fed will start to focus on ...

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Stock Market 101: What is the Dow Jones Industrial Average?

2009-08-12T00:41:00.000-07:00

The Dow Jones Industrial Average is the oldest and most widely used indicator track the movements of the US stock market. The average is price weighted and ...

Stock Market 101: What is the Dow Jones Industrial Average?

OIL FUTURES: Crude Trades Flat Ahead Of FOMC Result, EIA Data

2009-08-12T00:36:00.000-07:00

SINGAPORE (Dow Jones)--Crude futures traded near flat in Asia Wednesday as investors sat on the sidelines, waiting for the outcome of the US Federal Open ...

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Dow Jones Industrial set for a minor correction

2009-08-11T21:21:00.000-07:00

Dow Jones Industrial dropped 1.03% to close at 9,241.45 on Tuesday. The recent uptrend of the stock market was due to the emergence of the economies from recession. As the market has risen for many months, and the market has ran out of steam. There will be a minor correction, and the immediate support is around 9079.

Why the SEC Is Targeting Flash Trading

2009-08-11T08:20:00.000-07:00

"I don't think they have proof it's hurting investors in the stock market." The pace of trading has increased so dramatically that it's worth asking whether ...

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How to Profit from These Three Erratic Markets

2009-08-11T07:30:00.000-07:00

Since 1998, he's headed his own office-based trading firm where he trades commodity options, stock & index options, ETF options and e-mini futures options on a daily basis. ... Smart Profits Report is a comprehensive investment tool that brings you top chart analysis and cutting-edge trading techniques. Smart Profits Report's market-beating technical analysts reveal how to use highly effective charting tools that mainstream analysts know little about or nothing about. ...

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Technical Analysis In Future And Option

2009-08-10T06:42:00.001-07:00

This technical analysis is done with the basis of the stocks past which is important and that trend dictates the future stock option trading stock ticker ...

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New Heights for the Markets - greenfaucet

2009-08-10T06:40:00.001-07:00

New Heights for the Markets Investing Advice, Stock Market Technical Analysis, Technical Analysis Trading, Stock Market Strategies, ETF Investing, Financial Investment Advice. ... We're option traders, and time is of the essence! We work in smaller timeframes in order to manage risk and time decay and to be in tune with trading trends. The media, analysts, fund managers out there who give us sage advice? The can be wrong for awhile before they get it right...again, stock ...

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Berkshire Hathaway stock ready to profit again

2009-08-10T05:35:00.000-07:00

For those who can afford it, technical analysis can shed some light on whether it is a buy right now. Looking at a long term weekly chart of BRK-A,

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US Stocks Rise, With American Express, AIG Strong

2009-08-08T07:53:00.000-07:00

"It was a good week, but there may be some weakness below the surface," said Todd Clark, director of stock trading at Nollenberger Capital Partners. ...

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Dell Computer daily and weekly chart

2009-08-08T07:41:00.001-07:00

Dell Computer is down for the past three sessions. We have three dark colored bars. There may be light colored bar in the next or two sessions. There will be no entry above the moving averages. It is time to prepare for another short term entry when the bars are below 50 day moving average.

By looking at the weekly chart, we find that the past two bars are are bearish and with upper shadow. So we assume that the short term trend is down. The support is around 12, the 20 and 50 week moving average.

S&P 500 Stock Market Trends Analysis for August 2009

2009-08-07T05:32:00.000-07:00

Trend following is a proven strategy to beat the market and grow your stock portfolio. Technical analysis provides the tools to analyze and identify trends ...

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China Mobile breaks 84 resistance

2009-08-06T09:10:00.000-07:00

Today's stock market is in its uptrending mood, Hang Seng index closed in the 21,000 barrier. The index will trade at this level for another week or two because many blue chip earning will be out this two weeks.

China Mobile closed at 87.1, passed the 84 resistance. We can consider the 84 to be support for the many weeks to come.

This is weekly chart of China Mobile, and we can see that the 20 week moving average just crossed 50 week moving average. The two consecutive long candle bars tell us that we are in uptrending mode, at least.

Since the weekly chart is uptrending, the stock market will trade the upper region for many weeks.