Top Financial Companies August 5 2011 : Following is a review of today’s market action by the top stocks, as measured by market capitalization, in the Financial sector:
1. General Electric Company(NYSE:GE)
The shares closed at $16.51, up $0.04, or 0.24%, on the day. They have traded in a 52-week range of $14.25 to $21.65. Volume today was 124,156,240 shares, against a 3-month average volume of 52,665,600 shares. Its market capitalization is $175.01billion, its trailing P/E is 12.99, its trailing earnings are $1.27 per share, and it pays a dividend of $0.60 per share, for a dividend yield of 3.40%.
About the company: General Electric Company is a diversified technology, media and financial services company. The Company offers products and services ranging from aircraft engines, power generation, and water processing technology to medical imaging, business and consumer financing, media content and industrial products. General Electric conducts operations globally.
2. Berkshire Hathaway Inc.(NYSE:BRK.A)
The shares closed at $, on the day. They have traded in a 52-week range of $ to $. Volume today was shares, against a 3-month average volume of shares. Its market capitalization is $175.01billion, its trailing P/E is , its trailing earnings are $ per share, and it pays a dividend of $ per share, for a dividend yield of .
3. Berkshire Hathaway Inc.(NYSE:BRK.B)
The shares closed at $, on the day. They have traded in a 52-week range of $ to $. Volume today was shares, against a 3-month average volume of shares. Its market capitalization is $175.01billion, its trailing P/E is , its trailing earnings are $ per share, and it pays a dividend of $ per share, for a dividend yield of .
4. HSBC Holdings plc (ADR)(NYSE:HBC)
The shares closed at $46.08, down $0.61, or 1.31%, on the day. They have traded in a 52-week range of $44.89 to $59.14. Volume today was 8,872,321 shares, against a 3-month average volume of 2,782,410 shares. Its market capitalization is $161.49billion, its trailing P/E is 12.80, its trailing earnings are $3.60 per share, and it pays a dividend of $1.80 per share, for a dividend yield of 3.70%.
About the company: HSBC Holdings plc is the holding company for the HSBC Group. The Company provides a variety of international banking and financial services, including retail and corporate banking, trade, trusteeship, securities, custody, capital markets, treasury, private and investment banking, and insurance. The Group operates worldwide.
5. JPMorgan Chase + Co.(NYSE:JPM)
The shares closed at $37.60, down $0.32, or 0.84%, on the day. They have traded in a 52-week range of $35.55 to $48.36. Volume today was 85,044,530 shares, against a 3-month average volume of 33,563,500 shares. Its market capitalization is $148.84billion, its trailing P/E is 8.03, its trailing earnings are $4.68 per share, and it pays a dividend of $1.00 per share, for a dividend yield of 2.50%.
About the company: JPMorgan Chase & Co. provides global financial services and retail banking. The Company provides services such as investment banking, treasury and securities services, asset management, private banking, card member services, commercial banking, and home finance. JP Morgan Chase serves business enterprises, institutions, and individuals.
6. Wells Fargo + Company(NYSE:WFC)
The shares closed at $25.21, down $0.53, or 2.06%, on the day. They have traded in a 52-week range of $23.02 to $34.25. Volume today was 58,008,970 shares, against a 3-month average volume of 35,023,100 shares. Its market capitalization is $133.06billion, its trailing P/E is 9.77, its trailing earnings are $2.58 per share, and it pays a dividend of $0.48 per share, for a dividend yield of 1.80%.
About the company: Wells Fargo & Company is a diversified financial services company providing banking, insurance, investments, mortgage, leasing, credit cards, and consumer finance. The Company operates through physical stores, the Internet and other distribution channels across North America and elsewhere internationally.
7. Citigroup Inc.(NYSE:C)
The shares closed at $33.44, down $1.37, or 3.94%, on the day. They have traded in a 52-week range of $31.81 to $51.50. Volume today was 103,254,039 shares, against a 3-month average volume of 39,465,400 shares. Its market capitalization is $97.67billion, its trailing P/E is 10.94, its trailing earnings are $3.06 per share, and it pays a dividend of $0.04 per share, for a dividend yield of 0.10%.
About the company: Citigroup Inc. is a diversified financial services holding company that provides a broad range of financial services to consumer and corporate customers around the world. The Company’s services include investment banking, retail brokerage, corporate banking, and cash management products and services.
8. Bank of America Corporation(NYSE:BAC)
The shares closed at $8.17, down $0.66, or 7.47%, on the day. They have traded in a 52-week range of $8.03 to $15.31. Volume today was 544,518,645 shares, against a 3-month average volume of 156,391,000 shares. Its market capitalization is $82.79billion, its trailing earnings are $-1.64 per share, and it pays a dividend of $0.04 per share, for a dividend yield of 0.40%.
About the company: Bank of America Corporation accepts deposits and offers banking, investing, asset management, and other financial and risk-management products and services. The Company has a mortgage lending subsidiary, and an investment banking and securities brokerage subsidiary.
9. Banco Santander, S.A. (ADR)(NYSE:STD)
The shares closed at $9.39, up $0.59, or 6.7%, on the day. They have traded in a 52-week range of $8.80 to $13.73. Volume today was 33,277,152 shares, against a 3-month average volume of 8,924,110 shares. Its market capitalization is $57.67billion, its trailing P/E is 8.01, its trailing earnings are $1.17 per share, and it pays a dividend of $0.61 per share, for a dividend yield of 6.40%.
About the company: Banco Santander SA attracts deposits and offers retail, commercial and private banking, and asset management services. The Bank offers consumer credit, mortgage loans, lease financing, factoring, mutual funds, pension funds, insurance, commercial credit, investment banking services, structured finance, and advice on mergers and acquisitions.
Saturday, August 6, 2011
stock market outlook for monday august 8 2011
stock market outlook for monday august 8 2011 : How the markets react to the news Monday is a matter of debate. Some investors have warned that pension funds with requirements to hold triple-A-rated assets will have to sell their Treasury holdings, which will cause bond yields to surge.
Marilyn Cohen, president of Envision Capital Management, says the market may have priced a downgrade in already and that the bond market will greet the downgrade news with a yawn.
We're the deepest and the largest bond market around," she says. "Investors feel we're money-good, there's no question about that. As long as you have the illusion that you're money-good while you're borrowing 40 cents on the dollar, nothing will change."
Stocks, which sold off heavily Friday as rumors swirled that a downgrade was coming, already may have factored at least some of the downgrade news into prices, others said.
Growing concerns about the state of the U.S. economy boiled over this past week, helping to send all three major U.S. equity indices down at least 5%, as Wall Street pondered whether even the sluggish growth seen so far in 2011 can be sustained.
These jitters remain, but headlines from Europe, namely worries about the stability of Italy and Spain, the continent's third and fourth largest economies, have crowded into the spotlight.
On Friday, there were reports that the European Central Bank plans to step in and buy Spanish and Italian debt, contingent on reform measures in Italy. Italy has already said that it would "accelerate measures," including balancing its budget. By next week, investors might hear more definitive plans from officials on how they'll move forward.
Whether these moves will convince investors that a potential debt contagion has been contained in Europe is yet to be seen. Barclays Capital was doubtful, saying in a report, "Europe's piecemeal approach to addressing the escalating crisis is likely to be insufficient to appease markets."
Katherine Klingensmith, strategist at UBS, says that, without clear indications from European leaders, "investors will continue to have periodic bouts of fear."
As a measure of overall risk sentiment toward Europe, Klingensmith suggests that investors watch widening spreads on Italian and Spanish bonds, as well as the value of the Swiss franc. A strengthening franc would indicate that contagion fears are still alive.
The market turmoil this past week pushed the major U.S. equity indices into correction mode -- defined as a 10% pullback from near-term highs in late April -- and it will take very strong U.S. economic data to inspire buyers.
Friday's July jobs report, which was decent but not all that impressive overall, had economists continuing the debate over whether the U.S. will slip into another recession or not. Capital Economics says the chances of a double-dip are "low" but "clearly rising." "This economic recovery will be "prolonged, painful and persistently disappointing," said the research firm.
Wall Street will find out whether the Federal Reserve has a similar take after Tuesday's meeting of the central bank's open market committee. Interest rates remaining at 0.25% for an "extended period" has become a given. The market is more interested in what the Fed has to say about the economy, including any buzz about further quantitative easing.
Most economists still think that a third round of easing would be premature. Given the weak reading on GDP growth in the first half as well as the lackluster unemployment rate at 9.1%, the Federal Reserve's forecast at the very least is expected to be more gloomy than its statement from last time.
We'll likely hear dovish language about economic softening," says Klingensmith. Short-term disruptions like poor weather conditions in the U.S. and the Japanese earthquake might get less of a mention from Fed Chairman Ben Bernanke. Meanwhile, long-term headwinds like the moribund jobs market will likely get more emphasis.
Many economists agree that the Fed will monitor the economy until September before determining if it needs to step in. With inflationary pressures still high, it would be a tough argument for intervention right now. It's also worth noting that the Fed is fighting an uphill battle more than it was during the second round of easing, since further intervention tends to have diminishing returns.
Some have speculated that Fed officials may bring down the interest rate that they charge banks for holding reserves at the central bank in order to encourage banks to put money to work. However, the effect of that is unclear given that U.S. consumers and corporations may not necessarily absorb a larger supply of money.
On the economic docket, Friday will provide good gauges on the health of the consumer sector in the form of retail sales and consumer sentiment reports.
A rebound in auto sales probably helped overall retail sales numbers in July, but core growth, excluding gas price gains and auto sale gains, will not be strong enough to drive growth aggressively, says David Semmens, economist at Standard Chartered Bank. In June, retail sales grew by a meager 0.1%.
Capital Economics pegs growth in July retail sales at 0.8%, with core growth at 0.6%.
"Until you start seeing the U.S. consumer coming back, you have to be less optimistic about outlook in the second half of the year," said Standard Chartered's Semmens
Weekly initial jobless claims will be due out Thursday. The numbers haven't shown a consistent downward trend yet. For more than three months, the number of Americans filing for first time unemployment benefits each week has floated above the 400,000 mark.
U.S. companies reporting earnings early next week include BroadSoft(BSFT), Kindred Healthcare(KND), Take-Two Interactive(TTWO), MGM Resorts(MGM), Walt Disney(DIS).
Later in the week, reports come out from Macy's(M), News Corporation(NWSA), Kohl's (KKS)and JC Penny(JCP).
At this point, there aren't too many headlines that can cure battered confidence in the market. Especially after a year's worth of gains were wiped away on the Dow on Thursday, stunned investors might think twice before betting on anything too risky.
Stock market prediction for week august 8 2011, stock market outlook for Monday august 8 2011, S&p stock prices prediction august 8 2011, financial market forecast august 8 2011, company earning report for week 8 august 2011, U.S. companies earning report. Best stock to buy august 8 2011, U.S. equity prediction.
Marilyn Cohen, president of Envision Capital Management, says the market may have priced a downgrade in already and that the bond market will greet the downgrade news with a yawn.
We're the deepest and the largest bond market around," she says. "Investors feel we're money-good, there's no question about that. As long as you have the illusion that you're money-good while you're borrowing 40 cents on the dollar, nothing will change."
Stocks, which sold off heavily Friday as rumors swirled that a downgrade was coming, already may have factored at least some of the downgrade news into prices, others said.
Growing concerns about the state of the U.S. economy boiled over this past week, helping to send all three major U.S. equity indices down at least 5%, as Wall Street pondered whether even the sluggish growth seen so far in 2011 can be sustained.
These jitters remain, but headlines from Europe, namely worries about the stability of Italy and Spain, the continent's third and fourth largest economies, have crowded into the spotlight.
On Friday, there were reports that the European Central Bank plans to step in and buy Spanish and Italian debt, contingent on reform measures in Italy. Italy has already said that it would "accelerate measures," including balancing its budget. By next week, investors might hear more definitive plans from officials on how they'll move forward.
Whether these moves will convince investors that a potential debt contagion has been contained in Europe is yet to be seen. Barclays Capital was doubtful, saying in a report, "Europe's piecemeal approach to addressing the escalating crisis is likely to be insufficient to appease markets."
Katherine Klingensmith, strategist at UBS, says that, without clear indications from European leaders, "investors will continue to have periodic bouts of fear."
As a measure of overall risk sentiment toward Europe, Klingensmith suggests that investors watch widening spreads on Italian and Spanish bonds, as well as the value of the Swiss franc. A strengthening franc would indicate that contagion fears are still alive.
The market turmoil this past week pushed the major U.S. equity indices into correction mode -- defined as a 10% pullback from near-term highs in late April -- and it will take very strong U.S. economic data to inspire buyers.
Friday's July jobs report, which was decent but not all that impressive overall, had economists continuing the debate over whether the U.S. will slip into another recession or not. Capital Economics says the chances of a double-dip are "low" but "clearly rising." "This economic recovery will be "prolonged, painful and persistently disappointing," said the research firm.
Wall Street will find out whether the Federal Reserve has a similar take after Tuesday's meeting of the central bank's open market committee. Interest rates remaining at 0.25% for an "extended period" has become a given. The market is more interested in what the Fed has to say about the economy, including any buzz about further quantitative easing.
Most economists still think that a third round of easing would be premature. Given the weak reading on GDP growth in the first half as well as the lackluster unemployment rate at 9.1%, the Federal Reserve's forecast at the very least is expected to be more gloomy than its statement from last time.
We'll likely hear dovish language about economic softening," says Klingensmith. Short-term disruptions like poor weather conditions in the U.S. and the Japanese earthquake might get less of a mention from Fed Chairman Ben Bernanke. Meanwhile, long-term headwinds like the moribund jobs market will likely get more emphasis.
Many economists agree that the Fed will monitor the economy until September before determining if it needs to step in. With inflationary pressures still high, it would be a tough argument for intervention right now. It's also worth noting that the Fed is fighting an uphill battle more than it was during the second round of easing, since further intervention tends to have diminishing returns.
Some have speculated that Fed officials may bring down the interest rate that they charge banks for holding reserves at the central bank in order to encourage banks to put money to work. However, the effect of that is unclear given that U.S. consumers and corporations may not necessarily absorb a larger supply of money.
On the economic docket, Friday will provide good gauges on the health of the consumer sector in the form of retail sales and consumer sentiment reports.
A rebound in auto sales probably helped overall retail sales numbers in July, but core growth, excluding gas price gains and auto sale gains, will not be strong enough to drive growth aggressively, says David Semmens, economist at Standard Chartered Bank. In June, retail sales grew by a meager 0.1%.
Capital Economics pegs growth in July retail sales at 0.8%, with core growth at 0.6%.
"Until you start seeing the U.S. consumer coming back, you have to be less optimistic about outlook in the second half of the year," said Standard Chartered's Semmens
Weekly initial jobless claims will be due out Thursday. The numbers haven't shown a consistent downward trend yet. For more than three months, the number of Americans filing for first time unemployment benefits each week has floated above the 400,000 mark.
U.S. companies reporting earnings early next week include BroadSoft(BSFT), Kindred Healthcare(KND), Take-Two Interactive(TTWO), MGM Resorts(MGM), Walt Disney(DIS).
Later in the week, reports come out from Macy's(M), News Corporation(NWSA), Kohl's (KKS)and JC Penny(JCP).
At this point, there aren't too many headlines that can cure battered confidence in the market. Especially after a year's worth of gains were wiped away on the Dow on Thursday, stunned investors might think twice before betting on anything too risky.
Stock market prediction for week august 8 2011, stock market outlook for Monday august 8 2011, S&p stock prices prediction august 8 2011, financial market forecast august 8 2011, company earning report for week 8 august 2011, U.S. companies earning report. Best stock to buy august 8 2011, U.S. equity prediction.
Friday, August 5, 2011
How will US credit rating downgrade effect on canadian dollar
How will US credit rating downgrade effect on canadian dollar : The Canadian dollar fell to its weakest level since July 18 on Tuesday morning after U.S. data showed consumer spending fell in June, adding to a sell-off of the Canadian currency that came after the U.S. budget deal.
Two days of weak U.S. data shifted investor focus back to tepid growth prospects for Canada's largest trading partner and followed a weekend deal by U.S. lawmakers that will lead to more than $2 trillion in spending cuts.
The Canadian currency was at $0.9597 to the U.S. dollar, or $1.0420, in early trade, down from the C$0.9555 close on Friday. Canadian markets were closed on Monday for a civic holiday.
The currency hit its weakest point since July 18 earlier in the session, at C$0.9619, after U.S. data showed consumer spending fell unexpectedly in June, dimming growth prospects.
"The market has been busy trying to digest everything going on the U.S. and the supposed relief over the debt situationmbeing resolved, pending today's vote, was very short-lived,
A wealth of data is due out this week in both Canada and the United States, including much-watched employment reports for both countries on Friday.
But the downgrade is still bad news. It is proof that the U.S. economy is not growing as rapidly as it has in the past, and as we all have heard many times, the government has been living beyond its means. Now we have to make up for it, both in our reputation and in dollars and cents
Two days of weak U.S. data shifted investor focus back to tepid growth prospects for Canada's largest trading partner and followed a weekend deal by U.S. lawmakers that will lead to more than $2 trillion in spending cuts.
The Canadian currency was at $0.9597 to the U.S. dollar, or $1.0420, in early trade, down from the C$0.9555 close on Friday. Canadian markets were closed on Monday for a civic holiday.
The currency hit its weakest point since July 18 earlier in the session, at C$0.9619, after U.S. data showed consumer spending fell unexpectedly in June, dimming growth prospects.
"The market has been busy trying to digest everything going on the U.S. and the supposed relief over the debt situationmbeing resolved, pending today's vote, was very short-lived,
A wealth of data is due out this week in both Canada and the United States, including much-watched employment reports for both countries on Friday.
But the downgrade is still bad news. It is proof that the U.S. economy is not growing as rapidly as it has in the past, and as we all have heard many times, the government has been living beyond its means. Now we have to make up for it, both in our reputation and in dollars and cents
S&P 500 stock index prediction august 2011
S&P 500 stock index prediction august 2011 ; The S&P 500 stock index fell 10.8 per cent in the past 10 trading days on concerns that the US economy may head into another recession and because the European debt crisis has been growing worse as it spreads to Italy.
The S&P 500 closed out in negative territory as well by .06 percent at 1,199.38. The good news came early as the jobs data posted and was initially received as positive. The job market gained strength by adding 117,000 jobs in July.
This number far surpassed what most economists were anticipating. The national unemployment rate also ratcheted lower by a tenth of a percent. This economic news skewed positive but when compared to the number of jobs that many experts feel is necessary to keep pace with population growth, it still fell short. Economists feel that at least 150,000 jobs need to be added on a monthly basis to keep pace with population growth.
This news was not enough to make those on Wall Street forget the other inadequate reports that posted within the last six open trading days. The weight of the weaker GDP, manufacturing and consumer spending reports continue to weigh on investors not to mention the worries stemming from global debt concerns.
The week ended as one of the worst weeks for stock trends in recent years. All three major indices were negative for the week. The DJI was lower by almost 6 percent. The Nasdaq lower by 8 percent and the S&P 500 lower by 7 percent for the week. To top it off, the U.S. is at risk of losing its triple A credit rating.
The S&P 500 closed out in negative territory as well by .06 percent at 1,199.38. The good news came early as the jobs data posted and was initially received as positive. The job market gained strength by adding 117,000 jobs in July.
This number far surpassed what most economists were anticipating. The national unemployment rate also ratcheted lower by a tenth of a percent. This economic news skewed positive but when compared to the number of jobs that many experts feel is necessary to keep pace with population growth, it still fell short. Economists feel that at least 150,000 jobs need to be added on a monthly basis to keep pace with population growth.This news was not enough to make those on Wall Street forget the other inadequate reports that posted within the last six open trading days. The weight of the weaker GDP, manufacturing and consumer spending reports continue to weigh on investors not to mention the worries stemming from global debt concerns.
The week ended as one of the worst weeks for stock trends in recent years. All three major indices were negative for the week. The DJI was lower by almost 6 percent. The Nasdaq lower by 8 percent and the S&P 500 lower by 7 percent for the week. To top it off, the U.S. is at risk of losing its triple A credit rating.
Thursday, August 4, 2011
Hansen Natural Corporation (HANS) earnings report second quarter 2011
Hansen Natural Corporation (HANS) earnings report second quarter 2011, Goldman Sachs outlook 2013, Hansen Natural stock prediction 2011 : Hansen Natural Corporation (HANS) is set to release its second quarter earnings for fiscal year 2011 on Thursday, August 4. The company manufactures a range of beverages including fruit juices, soft drinks, and energy drinks.
The company operates under various popular brands including Monster Energy, Hansen's Natural Soda, and Hansen's Energy. The monster Energy line of drink is the company's most successful product and brings in around 90 percent of revenues.
Q1 Highlights:
* Hansen Natural Corporation reported net sales for the quarter of $356.4 million, a year-over-year increase of 49.7 percent compared with $238.1 million. Gross sales for the period were $407.6 million, up 50.6 percent year-over-year.
* The company reported operating income of $88.45 million for the quarter, an increase of 74.2 percent year over year from $50.8 million.
* The company reported net income of $55 million, an increase of 69 percent year-over-year as against $32.6 million.
* Diluted EPD for the quarter was $0.59, up from $0.35 in the comparable year-ago quarter.
Hansen Natural Corporation is anticipated to report earnings in the range of $0.79 and $0.92 per share, with a consensus estimate of $0.84, and a coefficient variance of 4.51. Revenues this time around are expected to fall in the range of $418 million and $454 million, with a consensus of $436 million. In the same year-ago quarter, the company posted earnings of $0.69 per share on revenues of $366 million.
Goldman Sachs recently raised their earnings outlook for the company through to 2013 stating, "The increase to our estimates reflect better US sales as HANS has been posting stronger-than-expected sales growth in the US convenience store data (up 22% ytd) as well as a slightly lower cost outlook as key spot commodities have retreated off of their peaks." The company is expanding into Europe which is good for company growth, but this segment may see lower sales this quarter owing to less promotional spending.
HANS is currently trading at a price of $74.17. In the past 52 weeks, the stock has been trading in the range of $40.81 to $84.00. HANS has an average target price of $79.00, and analysts maintain an average rating of Overweight on the company's stock.
The company operates under various popular brands including Monster Energy, Hansen's Natural Soda, and Hansen's Energy. The monster Energy line of drink is the company's most successful product and brings in around 90 percent of revenues.
Q1 Highlights:
* Hansen Natural Corporation reported net sales for the quarter of $356.4 million, a year-over-year increase of 49.7 percent compared with $238.1 million. Gross sales for the period were $407.6 million, up 50.6 percent year-over-year.
* The company reported operating income of $88.45 million for the quarter, an increase of 74.2 percent year over year from $50.8 million.
* The company reported net income of $55 million, an increase of 69 percent year-over-year as against $32.6 million.
* Diluted EPD for the quarter was $0.59, up from $0.35 in the comparable year-ago quarter.
Hansen Natural Corporation is anticipated to report earnings in the range of $0.79 and $0.92 per share, with a consensus estimate of $0.84, and a coefficient variance of 4.51. Revenues this time around are expected to fall in the range of $418 million and $454 million, with a consensus of $436 million. In the same year-ago quarter, the company posted earnings of $0.69 per share on revenues of $366 million.
Goldman Sachs recently raised their earnings outlook for the company through to 2013 stating, "The increase to our estimates reflect better US sales as HANS has been posting stronger-than-expected sales growth in the US convenience store data (up 22% ytd) as well as a slightly lower cost outlook as key spot commodities have retreated off of their peaks." The company is expanding into Europe which is good for company growth, but this segment may see lower sales this quarter owing to less promotional spending.
HANS is currently trading at a price of $74.17. In the past 52 weeks, the stock has been trading in the range of $40.81 to $84.00. HANS has an average target price of $79.00, and analysts maintain an average rating of Overweight on the company's stock.
Mortgage Rates Eat Macaroni and Cheese August 4, 2011
Mortgage Rates Eat Macaroni and Cheese August 4, 2011 ; Mortgage rates are feeling the effects of a slowing US economy but a strong corporate earnings report from Kraft (famous for their macaroni and cheese) will likely keep current mortgage rates from falling significantly today (though they may fall slightly). Despite the fact that today’s employment data was weak, investors seem focused on tomorrow’s monthly Non-Farm Payroll (NFP) report.
I have typically recommended extreme caution by home purchasers and refinancers lately as it relates to rate locks. However, today, given the virtually universal expectation for a weak NFP report, those with a higher risk tolerance might consider waiting until tomorrow.
Kraft announced higher earnings, raised its guidance for the remainder of 2011 and indicated that it is splitting into two companies. There is no truth to the rumor that the two companies will be known as “Macaroni” and “Cheese”. Kraft is indicative of many US firms that have managed the weak US economy extremely well by cutting expenses and raising productivity. However, at some point these lean and mean companies will need additional employees to continue to grow.
The weekly jobless claims report this morning completely erased the memory of last week’s surprise drop in initial claims. Not only did the report document that just over 400,000 folks applied for first-time unemployment claims, but the revisions to last week’s report took it back over the crucial 400,000 person threshold.
The economic slowdown is not limited to the US. In fact it appears to be a truly global phenomenon. Reports from China, Japan and Europe confirm that growth has slowed worldwide. The Bank of England, which has raised interest rates as of late, decided today to leave rates unchanged as a strategy to leave more liquidity in the system to support growth. Japan, still facing the devastating effects of the earthquake and tsunami, has intervened in the currency market to attempt to reduce the value of its currency to make goods produced there more competitive. Governments are doing what they can to try to stimulate growth. Does the US have any such efforts left in its arsenal?
Tomorrow’s NFP report could be a turning point toward historically low interest rates or it could simply signal more of the same for rates…movement within a relatively small range. No one expects a surprise gain in employment levels tomorrow which would be a harbinger of higher rates. However, with the healthiness of corporate balance sheets and earnings, that turning point toward meaningfully higher rates may not be too far away. Come September, when kids are back in school, and corporate execs are back at work, and barring a decent into recession, I would not be surprised to see the US economy begin to accelerate.
I have typically recommended extreme caution by home purchasers and refinancers lately as it relates to rate locks. However, today, given the virtually universal expectation for a weak NFP report, those with a higher risk tolerance might consider waiting until tomorrow.
Kraft announced higher earnings, raised its guidance for the remainder of 2011 and indicated that it is splitting into two companies. There is no truth to the rumor that the two companies will be known as “Macaroni” and “Cheese”. Kraft is indicative of many US firms that have managed the weak US economy extremely well by cutting expenses and raising productivity. However, at some point these lean and mean companies will need additional employees to continue to grow.
The weekly jobless claims report this morning completely erased the memory of last week’s surprise drop in initial claims. Not only did the report document that just over 400,000 folks applied for first-time unemployment claims, but the revisions to last week’s report took it back over the crucial 400,000 person threshold.
The economic slowdown is not limited to the US. In fact it appears to be a truly global phenomenon. Reports from China, Japan and Europe confirm that growth has slowed worldwide. The Bank of England, which has raised interest rates as of late, decided today to leave rates unchanged as a strategy to leave more liquidity in the system to support growth. Japan, still facing the devastating effects of the earthquake and tsunami, has intervened in the currency market to attempt to reduce the value of its currency to make goods produced there more competitive. Governments are doing what they can to try to stimulate growth. Does the US have any such efforts left in its arsenal?
Tomorrow’s NFP report could be a turning point toward historically low interest rates or it could simply signal more of the same for rates…movement within a relatively small range. No one expects a surprise gain in employment levels tomorrow which would be a harbinger of higher rates. However, with the healthiness of corporate balance sheets and earnings, that turning point toward meaningfully higher rates may not be too far away. Come September, when kids are back in school, and corporate execs are back at work, and barring a decent into recession, I would not be surprised to see the US economy begin to accelerate.
Mortgage Rates August 4 2011
Mortgage Rates August 4 2011 ; Renewed economic worries had mortgage rates falling sharply, with the benchmark conforming 30-year fixed mortgage rate now 4.54 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.39 discount and origination points.
The average 15-year fixed mortgage dropped to a new low of 3.68 percent while the larger jumbo 30-year fixed rate retreated to 5.06 percent. Adjustable rate mortgages moved lower also, with the average 5-year ARM sliding to 3.23 percent and the 7-year ARM falling to 3.52 percent.
The last time mortgage rates were above 6 percent was Nov. 2008. At the time, the average 30-year fixed rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.54 percent, the monthly payment for the same size loan would be $1,018.13, a difference of $223 per month for anyone refinancing now.
SURVEY RESULTS
30-year fixed: 4.54% -- down from 4.74% last week (avg. points: 0.39)
15-year fixed: 3.68% -- down from 3.83% last week (avg. points: 0.31)
5/1 ARM: 3.23% -- down from 3.34% last week (avg. points: 0.38)
Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets
Loan Type - Interest Rate - APR - 8/4/11
30-Year Fixed 4.375% 4.559%
30-Year Fixed FHA 4.250% 5.251%
15-Year Fixed 3.375% 3.691%
5-Year ARM 2.750% 3.083%
5-Year ARM FHA 3.250% 3.311%
Jumbo Loan Rates - APR - 8/4/11
30-Year Fixed 4.625% 4.760%
5-Year ARM 3.250% 3.211%
The average 15-year fixed mortgage dropped to a new low of 3.68 percent while the larger jumbo 30-year fixed rate retreated to 5.06 percent. Adjustable rate mortgages moved lower also, with the average 5-year ARM sliding to 3.23 percent and the 7-year ARM falling to 3.52 percent.
The last time mortgage rates were above 6 percent was Nov. 2008. At the time, the average 30-year fixed rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.54 percent, the monthly payment for the same size loan would be $1,018.13, a difference of $223 per month for anyone refinancing now.
SURVEY RESULTS
30-year fixed: 4.54% -- down from 4.74% last week (avg. points: 0.39)
15-year fixed: 3.68% -- down from 3.83% last week (avg. points: 0.31)
5/1 ARM: 3.23% -- down from 3.34% last week (avg. points: 0.38)
Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets
Loan Type - Interest Rate - APR - 8/4/11
30-Year Fixed 4.375% 4.559%
30-Year Fixed FHA 4.250% 5.251%
15-Year Fixed 3.375% 3.691%
5-Year ARM 2.750% 3.083%
5-Year ARM FHA 3.250% 3.311%
Jumbo Loan Rates - APR - 8/4/11
30-Year Fixed 4.625% 4.760%
5-Year ARM 3.250% 3.211%
Lloyds Banking Group reported a first-half net loss 2011
Lloyds Banking Group reported a first-half net loss 2011 : Britain's state-rescued Lloyds Banking Group on Thursday reported a first-half net loss of £2.3 billion (2.6 billion euros, $3.8 billion) after being forced to compensate clients who were mis-sold insurance.
LBG, which recently slashed 15,000 jobs as it bids to halve its international division, said its loss after tax for the six months to June compared with a net profit of £596 million in the first half of 2010.
Pre-tax profit excluding exceptional charges slid 31 percent to £1.1 billion but beat analyst expectations for £1.0 billion, according to Dow Jones Newswires. LBG was also hit my higher bad debt losses in Ireland.
"The group performed in line with our expectations in the first half of 2011 despite the ongoing challenges of economic and regulatory uncertainty, the effects of which ... are reflected in these results," LBG chief executive Antonio Horta-Osorio said in a statement.
The lender's share price slumped 2.73 percent to 37.89 pence in late morning trade on London's FTSE 100 index, which dipped 0.17 percent to 5,574.84 points.
Lloyds, 41-percent owned by the British government, was mainly hit by a one-off charge of £3.2 billion which it has set aside to compensate customers mis-sold payment protection insurance by the bank.
British banks in April lost a high court appeal against tighter regulation of PPI which provides insurance for consumers should they fail to meet repayments on a credit product such as personal loans, mortgages or payment cards.
PPI became controversial after it was revealed that numerous consumers had been sold the insurance without understanding that the cost was being added to their loan repayments. Britain has since banned simultaneous sales of PPI and credit products.
LBG on Thursday said its bad debt losses narrowed by 17 percent to £5.4 billion in the first half, although the impairment charge for Ireland increased 14 percent to £1.78 billion as a result of the country's weak property market.
Horta-Osorio, who has led LBG since March, unveiled in June plans to save the bank £1.5 billion a year, aided by the scrapping of 15,000 jobs, or 14 percent of its staff.
"We don't see that figure changing," he told a conference call with reporters on Thursday.
LBG has slashed more than 40,000 posts since 2009 as it looks to nurse its way back to health after its part-nationalisation at the height of the global financial crisis.
The bank confirmed it had received "a number of credible initial approaches" for the 632 branches it is being forced to sell by EU regulators following its £20 billion bailout, adding it was hopeful of finding a buyer by the end of 2011.
The lender, which was sunk by the ill-fated 2008 takeover of rival bank HBOS, is also cutting its international activities to 15 nations by 2014, compared with the current level of 30.
Horta-Osorio's predecessor Eric Daniels left LBG amid intense shareholder anger after he oversaw the government-brokered takeover of HBOS. A Portuguese national, Horta-Osorio formerly led Santander UK, the British arm of the Spanish banking group.
LBG, which recently slashed 15,000 jobs as it bids to halve its international division, said its loss after tax for the six months to June compared with a net profit of £596 million in the first half of 2010.
Pre-tax profit excluding exceptional charges slid 31 percent to £1.1 billion but beat analyst expectations for £1.0 billion, according to Dow Jones Newswires. LBG was also hit my higher bad debt losses in Ireland.
"The group performed in line with our expectations in the first half of 2011 despite the ongoing challenges of economic and regulatory uncertainty, the effects of which ... are reflected in these results," LBG chief executive Antonio Horta-Osorio said in a statement.
The lender's share price slumped 2.73 percent to 37.89 pence in late morning trade on London's FTSE 100 index, which dipped 0.17 percent to 5,574.84 points.
Lloyds, 41-percent owned by the British government, was mainly hit by a one-off charge of £3.2 billion which it has set aside to compensate customers mis-sold payment protection insurance by the bank.
British banks in April lost a high court appeal against tighter regulation of PPI which provides insurance for consumers should they fail to meet repayments on a credit product such as personal loans, mortgages or payment cards.
PPI became controversial after it was revealed that numerous consumers had been sold the insurance without understanding that the cost was being added to their loan repayments. Britain has since banned simultaneous sales of PPI and credit products.
LBG on Thursday said its bad debt losses narrowed by 17 percent to £5.4 billion in the first half, although the impairment charge for Ireland increased 14 percent to £1.78 billion as a result of the country's weak property market.
Horta-Osorio, who has led LBG since March, unveiled in June plans to save the bank £1.5 billion a year, aided by the scrapping of 15,000 jobs, or 14 percent of its staff.
"We don't see that figure changing," he told a conference call with reporters on Thursday.
LBG has slashed more than 40,000 posts since 2009 as it looks to nurse its way back to health after its part-nationalisation at the height of the global financial crisis.
The bank confirmed it had received "a number of credible initial approaches" for the 632 branches it is being forced to sell by EU regulators following its £20 billion bailout, adding it was hopeful of finding a buyer by the end of 2011.
The lender, which was sunk by the ill-fated 2008 takeover of rival bank HBOS, is also cutting its international activities to 15 nations by 2014, compared with the current level of 30.
Horta-Osorio's predecessor Eric Daniels left LBG amid intense shareholder anger after he oversaw the government-brokered takeover of HBOS. A Portuguese national, Horta-Osorio formerly led Santander UK, the British arm of the Spanish banking group.
Wednesday, August 3, 2011
Stock Market Crash Good News for Mortgage Rates at Bank of America and Wells Fargo
Stock Market Crash Good News for Mortgage Rates at Bank of America and Wells Fargo ; Bank of America (NYSE:BAC) dropped the 30 year fixed rate mortgage to just 4.25% today with an APR of 4.462%. Wells Fargo (NYSE:WFC) is now down to 4.375% with a 4.559% APR.
As the stock market took a dramatic fall yesterday, investors fled to bonds and dropped yields on mortgage backed securities which caused mortgage rates to fall to the lowest levels of 2011. Financial markets were focused on a resolution to the debt ceiling crisis and in the meantime the economy continued to slide. Consumer spending was down and employment forecasts look dismal.
So what is bad for the economy in general is often good news for mortgage rates. Alas, a weak economy makes it difficult for home buyers to take advantage of the fabulous rates.
15 year loans at the banks were 3.375% for the 15 year loan at Wells Fargo and 3.50% at Bank of America. BoA offers a 20 year fixed rate loan at 3.875% today with a 4.078% APR.
ARMs at Wells Fargo start at 2.75% for the 5 year conventional loan. Bank of America is quoting 2.875% for the same loan.
Refinance interest rates at Wells Fargo are 4.50% today for the 30 year refi and 3.625% for the 15 year contract. At BoA the 30 year refinance mortgage rate is 4.375% and the 15 year is 3.625%.
As the stock market took a dramatic fall yesterday, investors fled to bonds and dropped yields on mortgage backed securities which caused mortgage rates to fall to the lowest levels of 2011. Financial markets were focused on a resolution to the debt ceiling crisis and in the meantime the economy continued to slide. Consumer spending was down and employment forecasts look dismal.
So what is bad for the economy in general is often good news for mortgage rates. Alas, a weak economy makes it difficult for home buyers to take advantage of the fabulous rates.
15 year loans at the banks were 3.375% for the 15 year loan at Wells Fargo and 3.50% at Bank of America. BoA offers a 20 year fixed rate loan at 3.875% today with a 4.078% APR.
ARMs at Wells Fargo start at 2.75% for the 5 year conventional loan. Bank of America is quoting 2.875% for the same loan.
Refinance interest rates at Wells Fargo are 4.50% today for the 30 year refi and 3.625% for the 15 year contract. At BoA the 30 year refinance mortgage rate is 4.375% and the 15 year is 3.625%.
Italian government bond yield chart 10 Year 2000 - 2011
Italian government bond yield chart 10 Year 2000 - 2011 : The Italian Prime Minister Silvio Berlusconi has sought to restore calm, as yields on Italian government bonds shot to record highs, prompting renewed concern that the country may need aid from the eurozone.
Italy's Government Bond Yield for 10 Year Notes rallied 138 basis points during the last 12 months. From 2000 until 2011 Italy's Government Bond Yield for 10 Year Notes averaged 5.94 percent reaching an historical high of 13.75 percent in March of 1995 and a record low of 3.22 percent in September of 2005.
Generally, a government bond is issued by a national government and is denominated in the country`s own currency. Bonds issued by national governments in foreign currencies are normally referred to as sovereign bonds. The yield required by investors to loan funds to governments reflects inflation expectations and the likelihood that the debt will be repaid. This page includes: Italy Government Bond 10 Year Yield chart, historical data and news.
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Italy's Government Bond Yield for 10 Year Notes rallied 138 basis points during the last 12 months. From 2000 until 2011 Italy's Government Bond Yield for 10 Year Notes averaged 5.94 percent reaching an historical high of 13.75 percent in March of 1995 and a record low of 3.22 percent in September of 2005.
Generally, a government bond is issued by a national government and is denominated in the country`s own currency. Bonds issued by national governments in foreign currencies are normally referred to as sovereign bonds. The yield required by investors to loan funds to governments reflects inflation expectations and the likelihood that the debt will be repaid. This page includes: Italy Government Bond 10 Year Yield chart, historical data and news.
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best-performing Dow Jones Industrial Average (DJIA) Stocks August 03, 2011
best-performing Dow Jones Industrial Average (DJIA) Stocks August 03, 2011 ; U.S. blue-chip stocks reversed sharp morning losses in a volatile session as investors weighed the likelihood of a recession amid the ongoing uncertainties in Washington and Europe.
The Dow Jones Industrial Average gained six points, or 0.1%, to 11873 in afternoon trading, while the Standard & Poor's 500-stock index gained three points, or 0.2%, to 1257. The Nasdaq Composite added 17 points, or 0.6%, to 2686 after falling briefly into negative territory for 2011 earlier in the morning. Below are the top 10 best-performing Dow Jones Industrial Average (DJIA) stocks year-to-date ;
International Business Machines Corp. (NYSE:IBM) is the 1st best-performing stock year-to-date in this segment of the market. It has risen 21.32% since the beginning of this year. Its price percentage change was 36.17% for the last 52 weeks.
Chevron Corporation (NYSE:CVX) is the 2nd best-performing stock year-to-date in this segment of the market. It has risen 13.37% since the beginning of this year. Its price percentage change was 32.97% for the last 52 weeks.
American Express Company (NYSE:AXP) is the 3rd best-performing stock year-to-date in this segment of the market. It has risen 13.05% since the beginning of this year. Its price percentage change was 7.85% for the last 52 weeks.
McDonald's Corporation (NYSE:MCD) is the 4th best-performing stock year-to-date in this segment of the market. It has risen 10.81% since the beginning of this year. Its price percentage change was 21.08% for the last 52 weeks.
Kraft Foods Inc. (NYSE:KFT) is the 5th best-performing stock year-to-date in this segment of the market. It has risen 8.35% since the beginning of this year. Its price percentage change was 15.77% for the last 52 weeks.
Exxon Mobil Corporation (NYSE:XOM) is the 6th best-performing stock year-to-date in this segment of the market. It has risen 6.46% since the beginning of this year. Its price percentage change was 25.67% for the last 52 weeks.
Caterpillar Inc. (NYSE:CAT) is the 7th best-performing stock year-to-date in this segment of the market. It has risen 3.76% since the beginning of this year. Its price percentage change was 36.78% for the last 52 weeks.
The Boeing Company (NYSE:BA) is the 8th best-performing stock year-to-date in this segment of the market. It has risen 3.74% since the beginning of this year. Its price percentage change was -2.86% for the last 52 weeks.
Pfizer Inc. (NYSE:PFE) is the 9th best-performing stock year-to-date in this segment of the market. It has risen 3.60% since the beginning of this year. Its price percentage change was 17.18% for the last 52 weeks.
Intel Corporation (NASDAQ:INTC) is the 10th best-performing stock year-to-date in this segment of the market. It has risen 3.28% since the beginning of this year. Its price percentage change was 2.70% for the last 52 weeks.
The Dow Jones Industrial Average gained six points, or 0.1%, to 11873 in afternoon trading, while the Standard & Poor's 500-stock index gained three points, or 0.2%, to 1257. The Nasdaq Composite added 17 points, or 0.6%, to 2686 after falling briefly into negative territory for 2011 earlier in the morning. Below are the top 10 best-performing Dow Jones Industrial Average (DJIA) stocks year-to-date ;
International Business Machines Corp. (NYSE:IBM) is the 1st best-performing stock year-to-date in this segment of the market. It has risen 21.32% since the beginning of this year. Its price percentage change was 36.17% for the last 52 weeks.
Chevron Corporation (NYSE:CVX) is the 2nd best-performing stock year-to-date in this segment of the market. It has risen 13.37% since the beginning of this year. Its price percentage change was 32.97% for the last 52 weeks.
American Express Company (NYSE:AXP) is the 3rd best-performing stock year-to-date in this segment of the market. It has risen 13.05% since the beginning of this year. Its price percentage change was 7.85% for the last 52 weeks.
McDonald's Corporation (NYSE:MCD) is the 4th best-performing stock year-to-date in this segment of the market. It has risen 10.81% since the beginning of this year. Its price percentage change was 21.08% for the last 52 weeks.
Kraft Foods Inc. (NYSE:KFT) is the 5th best-performing stock year-to-date in this segment of the market. It has risen 8.35% since the beginning of this year. Its price percentage change was 15.77% for the last 52 weeks.
Exxon Mobil Corporation (NYSE:XOM) is the 6th best-performing stock year-to-date in this segment of the market. It has risen 6.46% since the beginning of this year. Its price percentage change was 25.67% for the last 52 weeks.
Caterpillar Inc. (NYSE:CAT) is the 7th best-performing stock year-to-date in this segment of the market. It has risen 3.76% since the beginning of this year. Its price percentage change was 36.78% for the last 52 weeks.
The Boeing Company (NYSE:BA) is the 8th best-performing stock year-to-date in this segment of the market. It has risen 3.74% since the beginning of this year. Its price percentage change was -2.86% for the last 52 weeks.
Pfizer Inc. (NYSE:PFE) is the 9th best-performing stock year-to-date in this segment of the market. It has risen 3.60% since the beginning of this year. Its price percentage change was 17.18% for the last 52 weeks.
Intel Corporation (NASDAQ:INTC) is the 10th best-performing stock year-to-date in this segment of the market. It has risen 3.28% since the beginning of this year. Its price percentage change was 2.70% for the last 52 weeks.
U.S. economic and corporate news today august 3 2011
U.S. economic and corporate news today august 3 2011 ; U.S. stocks erased losses amid speculation Federal Reserve policy makers were considering another stimulus program to prevent the nation from slipping into a recession.
A rally in technology and industrial companies helped the Standard & Poor’s 500 Index snap a seven-day slide. MasterCard Inc., the second-biggest payments network, advanced 10 percent after profit rose 33 percent as customers’ spending increased.
The U.S. dollar lost ground against both the euro and the yen, but gained against the Swiss franc, after a surprise move by the Swiss National Bank to cut interest rates close to zero. The central bank warned it could take more action.
U.S. economic news august 3 2011 ,
Automatic Data Processing reported 114,000 new private-sector jobs were added in July, slightly better than consensus expectations for a gain of 105,000 jobs. However, the previous month's increase was revised down to 145,000 new jobs, from an original estimate of 157,000. Challenger Gray & Christmas said announced job cuts in July increased 60% from the previous month, hitting a 16-month high.
Separately, the U.S. nonmanufacturing sector expanded at a very sluggish pace in July although production picked up, according to data released Wednesday by the Institute for Supply Management. The ISM's non-manufacturing purchasing managers' index slipped to 52.7 in July from 53.3 in June, below expectations of a 53.5 reading. Worse, the employment component declined to 52.5, from 54.1 in June.
Orders for U.S. factory goods dropped for the second time in three months during June, falling 0.8% from the prior month, slightly better than an expected 1.0% drop.
US. corporate news august 3 2011
Hertz Global Holdings and CBS both reported earnings and revenue that exceeded Wall Street expectations late Tuesday. Hertz gained 0.1%, while CBS edged up 0.9%. Time Warner declined 2.9% even after its earnings topped forecasts and it increased its stock buyback program.
MasterCard gained 8.4% after second-quarter earnings climbed 33%, benefiting from double-digit increases in volume and processed transactions.
IntercontinentalExchange fell 2.7% after second-quarter earnings jumped 19% as the market operator's revenue was boosted by strong trading volume in its Brent crude and gasoil futures and options contracts.
Dunkin' Brands dropped 5.7% after second-quarter profit fell 1%, weighed down by higher expenses, though the company registered strong international sales growth. The parent company of Dunkin' Donuts and Baskin-Robbins, which went public last month, reported a profit of $17.2 million, down from $17.3 million a year earlier.
KKR & Co. fell 6% after the private-equity firm reported a 32% increase in second-quarter profits, but fell far short of earnings and revenue expectations.
Elsewhere, shares of Garmin slipped 4.9% after the company missed earnings estimates, while AMAG Pharmaceuticals rallied 11% after receiving a buyout bid from MSMB Capital Management.
U.S. nonmanufacturing sector, Hertz Global Holdings, Swiss National Bank, U.S. dollar interest rates august 3 2011, industrial companies, Swiss National Bank,MasterCard, U.S. stocks market august 3 2011.
A rally in technology and industrial companies helped the Standard & Poor’s 500 Index snap a seven-day slide. MasterCard Inc., the second-biggest payments network, advanced 10 percent after profit rose 33 percent as customers’ spending increased.
The U.S. dollar lost ground against both the euro and the yen, but gained against the Swiss franc, after a surprise move by the Swiss National Bank to cut interest rates close to zero. The central bank warned it could take more action.
U.S. economic news august 3 2011 ,
Automatic Data Processing reported 114,000 new private-sector jobs were added in July, slightly better than consensus expectations for a gain of 105,000 jobs. However, the previous month's increase was revised down to 145,000 new jobs, from an original estimate of 157,000. Challenger Gray & Christmas said announced job cuts in July increased 60% from the previous month, hitting a 16-month high.
Separately, the U.S. nonmanufacturing sector expanded at a very sluggish pace in July although production picked up, according to data released Wednesday by the Institute for Supply Management. The ISM's non-manufacturing purchasing managers' index slipped to 52.7 in July from 53.3 in June, below expectations of a 53.5 reading. Worse, the employment component declined to 52.5, from 54.1 in June.
Orders for U.S. factory goods dropped for the second time in three months during June, falling 0.8% from the prior month, slightly better than an expected 1.0% drop.
US. corporate news august 3 2011
Hertz Global Holdings and CBS both reported earnings and revenue that exceeded Wall Street expectations late Tuesday. Hertz gained 0.1%, while CBS edged up 0.9%. Time Warner declined 2.9% even after its earnings topped forecasts and it increased its stock buyback program.
MasterCard gained 8.4% after second-quarter earnings climbed 33%, benefiting from double-digit increases in volume and processed transactions.
IntercontinentalExchange fell 2.7% after second-quarter earnings jumped 19% as the market operator's revenue was boosted by strong trading volume in its Brent crude and gasoil futures and options contracts.
Dunkin' Brands dropped 5.7% after second-quarter profit fell 1%, weighed down by higher expenses, though the company registered strong international sales growth. The parent company of Dunkin' Donuts and Baskin-Robbins, which went public last month, reported a profit of $17.2 million, down from $17.3 million a year earlier.
KKR & Co. fell 6% after the private-equity firm reported a 32% increase in second-quarter profits, but fell far short of earnings and revenue expectations.
Elsewhere, shares of Garmin slipped 4.9% after the company missed earnings estimates, while AMAG Pharmaceuticals rallied 11% after receiving a buyout bid from MSMB Capital Management.
U.S. nonmanufacturing sector, Hertz Global Holdings, Swiss National Bank, U.S. dollar interest rates august 3 2011, industrial companies, Swiss National Bank,MasterCard, U.S. stocks market august 3 2011.
Dow Jones Industrial Average, Standard & Poor's 500-stock index august 3 2011
Dow Jones Industrial Average, Standard & Poor's 500-stock index august 3 2011 : U.S. blue-chip stocks reversed sharp morning losses in a volatile session as investors weighed the likelihood of a recession amid the ongoing uncertainties in Washington and Europe.
The Dow Jones Industrial Average gained six points, or 0.1%, to 11873 in afternoon trading, while the Standard & Poor's 500-stock index gained three points, or 0.2%, to 1257. The Nasdaq Composite added 17 points, or 0.6%, to 2686 after falling briefly into negative territory for 2011 earlier in the morning.
The gyrations came after the U.S. services sector softened and factory orders fell, adding to growing economic fears. Private-sector hiring in July came in a bit better than expected. The weakening economy, together with the debt-ceiling fight in Congress, helped push the Dow industrials to an eight-day slide, including the biggest one-day sell-off in two months. If the index finishes in the red, the nine-day losing streak will be the first since February 1978.
s p 500, dow jones, djia, dow jones industrial average, ft , U.S. services sector, Standard & Poor's 500-stock index august 3 2011, Dow Jones stock prices today,
The Dow Jones Industrial Average gained six points, or 0.1%, to 11873 in afternoon trading, while the Standard & Poor's 500-stock index gained three points, or 0.2%, to 1257. The Nasdaq Composite added 17 points, or 0.6%, to 2686 after falling briefly into negative territory for 2011 earlier in the morning.
The gyrations came after the U.S. services sector softened and factory orders fell, adding to growing economic fears. Private-sector hiring in July came in a bit better than expected. The weakening economy, together with the debt-ceiling fight in Congress, helped push the Dow industrials to an eight-day slide, including the biggest one-day sell-off in two months. If the index finishes in the red, the nine-day losing streak will be the first since February 1978.
s p 500, dow jones, djia, dow jones industrial average, ft , U.S. services sector, Standard & Poor's 500-stock index august 3 2011, Dow Jones stock prices today,
Tuesday, August 2, 2011
How to choose the Best Mutual Funds to invest
How to choose the Best Mutual Funds to invest : You should be able to evaluate a mutual fund before you choose the right one for you. It is important to know the objective of the fund, the fund manager and his/her own records and portfolio composition. Almost anyone can buy mutual funds and are easy to understand. Here are a few basic things you need to do to select the best mutual fund for you.
Knowing your basics:
It is extremely important for you to know what a mutual fund is and how it works, what its pros and cons are before finding the right mutual fund for yourself. Equity Mutual funds, Debt Mutual Funds, balanced Mutual Funds and Liquid/ Money Market funds are a few available options to invest in. Also there are time based funds, asset based funds, and investment based funds. Learn the different types and classification of funds before you in
Investment Objective:
Draw down your investment objective. Various schemes for different needs are available in the market. Like retirement plans, capital growth, dividend based etc. Identify your goal, determine your risk tolerance and have a plan before you invest in a mutual fund.
Compare and Contrast:
Compare each funds past performance as it is one of the most commonly used criteria. However, it is one of the most overrated indicators as past performances are not an indicator of future results. Compare each fund's historical returns to an appropriate benchmark, such as the fund's relative category average or an index. For example, performance for most stock mutual funds is compared to the S&P 500 Index.
Expenses and Costs:
Fees and expenses are a direct haul on investment returns. Over long periods of time, funds with low fees and expenses perform better than those with higher relative expenses. Though Mutual funds are perhaps the cheapest option available to retail investors, it is good to check exit load applicable. Know exactly how much the fund charges in terms of exit loads and management fees. Only consider mutual funds with an Expense Ratio below 1 percent. Also, avoid sales charges (loads) by using only no-load funds.
Growth or Dividend:
With growth scheme, all profits made by the fund are plunged back into the same scheme. One does not get income during the investment period but only at the time of maturity causing the NAV to rise over time. In the dividend option, profits are not re-invested; instead, it is given to the investor from time to time. The investor has options of either cashing on the dividends or go for dividend re-investment. Generally, funds whose NAV is above 10 are in a position to consider a dividend. Remember, though, declaring a dividend is solely at the fund's discretion; the periodicity is not certain nor is the amount fixed.
Choose the Right Mutual Fund Advisor:
A Fund advisor helps you choose the right fund for you. Selecting the right fund advisor is as important as choosing the right fund scheme. Investment Viewpoints, Client Service, and his/her Financial Planning Value are key factors that you choose your fund advisor on. Also see the past performances of the various funds that he handles.
These points could serve as guiding principles for deciding which mutual fund is the right one for you. And make sure you analyze the pros and cons before investing and do take into account the tax impacts and income requirements.
Knowing your basics:
It is extremely important for you to know what a mutual fund is and how it works, what its pros and cons are before finding the right mutual fund for yourself. Equity Mutual funds, Debt Mutual Funds, balanced Mutual Funds and Liquid/ Money Market funds are a few available options to invest in. Also there are time based funds, asset based funds, and investment based funds. Learn the different types and classification of funds before you in
Investment Objective:
Draw down your investment objective. Various schemes for different needs are available in the market. Like retirement plans, capital growth, dividend based etc. Identify your goal, determine your risk tolerance and have a plan before you invest in a mutual fund.
Compare and Contrast:
Compare each funds past performance as it is one of the most commonly used criteria. However, it is one of the most overrated indicators as past performances are not an indicator of future results. Compare each fund's historical returns to an appropriate benchmark, such as the fund's relative category average or an index. For example, performance for most stock mutual funds is compared to the S&P 500 Index.
Expenses and Costs:
Fees and expenses are a direct haul on investment returns. Over long periods of time, funds with low fees and expenses perform better than those with higher relative expenses. Though Mutual funds are perhaps the cheapest option available to retail investors, it is good to check exit load applicable. Know exactly how much the fund charges in terms of exit loads and management fees. Only consider mutual funds with an Expense Ratio below 1 percent. Also, avoid sales charges (loads) by using only no-load funds.
Growth or Dividend:
With growth scheme, all profits made by the fund are plunged back into the same scheme. One does not get income during the investment period but only at the time of maturity causing the NAV to rise over time. In the dividend option, profits are not re-invested; instead, it is given to the investor from time to time. The investor has options of either cashing on the dividends or go for dividend re-investment. Generally, funds whose NAV is above 10 are in a position to consider a dividend. Remember, though, declaring a dividend is solely at the fund's discretion; the periodicity is not certain nor is the amount fixed.
Choose the Right Mutual Fund Advisor:
A Fund advisor helps you choose the right fund for you. Selecting the right fund advisor is as important as choosing the right fund scheme. Investment Viewpoints, Client Service, and his/her Financial Planning Value are key factors that you choose your fund advisor on. Also see the past performances of the various funds that he handles.
These points could serve as guiding principles for deciding which mutual fund is the right one for you. And make sure you analyze the pros and cons before investing and do take into account the tax impacts and income requirements.
U.S. stocks dropped Tuesday August 2 2011
U.S. stocks dropped Tuesday August 2 2011 : U.S. stocks dropped Tuesday, adding to the year's longest losing streak, as worries about consumer spending trumped any enthusiasm surrounding an expected deal to raise the federal borrowing limit.
The Dow Jones Industrial Average slid 100 points, or 0.8%, to 12032, led lower by General Electric, which dropped 3%. Only two of the 30 Dow components traded in positive territory. The blue-chip index is on pace for its eighth straight decline, which would be its longest since October 2008. It has lost 700 points during the losing skid.
Pfizer was one of the Dow's biggest decliners, dropping 2%. The drugmaker reported second-quarter earnings that were slightly above expectations, but revenue fell shy of estimates. The company also maintained its full-year outlook and said it would buy back $5 billion to $7 billion worth of stock this year.
The Standard & Poor's 500-stock index shed 15 points, or 1.2%, to 1272, led lower by industrial and consumer discretionary stocks. All 10 sectors in the S&P 500 traded in the red.
The technology-oriented Nasdaq Composite gave up 7 points, or 0.3%, to 2738.
Investors were disappointed by news that Americans cut their spending by the most in nearly two years and saved at a faster rate during June, a pair of signs that underscored the economy's lack of vigor.
Spending decreased 0.2% after rising an upwardly revised 0.1% in May, according to the Commerce Department. The drop was the biggest since September 2009. Incomes rose 0.1%, after increasing 0.2% in May.
The consumer-spending figures highlight another troubling aspect of the weak recovery. Last week brought news that the U.S. economy barely grew in the first half, and on Monday came a report showing that manufacturing is shaky. Friday's employment report is expected to continue to show a stagnant labor market.
The Dow Jones Industrial Average slid 100 points, or 0.8%, to 12032, led lower by General Electric, which dropped 3%. Only two of the 30 Dow components traded in positive territory. The blue-chip index is on pace for its eighth straight decline, which would be its longest since October 2008. It has lost 700 points during the losing skid.
Pfizer was one of the Dow's biggest decliners, dropping 2%. The drugmaker reported second-quarter earnings that were slightly above expectations, but revenue fell shy of estimates. The company also maintained its full-year outlook and said it would buy back $5 billion to $7 billion worth of stock this year.
The Standard & Poor's 500-stock index shed 15 points, or 1.2%, to 1272, led lower by industrial and consumer discretionary stocks. All 10 sectors in the S&P 500 traded in the red.
The technology-oriented Nasdaq Composite gave up 7 points, or 0.3%, to 2738.
Investors were disappointed by news that Americans cut their spending by the most in nearly two years and saved at a faster rate during June, a pair of signs that underscored the economy's lack of vigor.
Spending decreased 0.2% after rising an upwardly revised 0.1% in May, according to the Commerce Department. The drop was the biggest since September 2009. Incomes rose 0.1%, after increasing 0.2% in May.
The consumer-spending figures highlight another troubling aspect of the weak recovery. Last week brought news that the U.S. economy barely grew in the first half, and on Monday came a report showing that manufacturing is shaky. Friday's employment report is expected to continue to show a stagnant labor market.
Pandora shares prices loses its shine on the Copenhagen Stock Exchange august 2 2011
Pandora shares prices loses its shine on the Copenhagen Stock Exchange august 2 2011 ; Shares in Pandora lost about two-thirds of their value as the Danish jewellery manufacturer slashed its full-year earnings outlook and parted company with its chief executive.
The 65 per cent plunge in Pandora shares on the Copenhagen Stock Exchange came less than a year after it raised about DKr10bn (€1.3bn) from an initial public offering that was one of the biggest in Europe last year.
Pandora, best known for the charm bracelets that it sells in 55 countries, cut its 2011 revenue growth forecast from at least 30 per cent to zero, having only upgraded its forecast from 25 per cent on April 18 this year and reiterated this guidance on May 19.
It also cut the full-year forecast for its earnings before interest, tax, depreciation and amortisation margin from at least 40 per cent to the “low thirties”.
The company blamed a “sharp revenue deterioration” late in the second quarter for a slowdown in its year-on-year revenue growth to only 3.6 per cent in the second quarter, down from 41 per cent in the first quarter and 67 per cent in the preceding quarter.
Its ebitda fell by 6.2 per cent to DKr512m in the second quarter.
Pandora cited a myriad of contributing factors including hefty increases in gold and silver wholesale prices, increasingly price-sensitive customers, excessive production and gorged inventory lists.
“This performance and these results are totally unacceptable. There are no excuses for them, they are largely self-inflicted, they reflect poor execution,” said Allan Leighton, Pandora’s board chairman.
The situation “can be remedied – but over time,” added Mr Leighton, the former chairman of the Royal Mail in the UK.
Pandora, founded in 1982 by husband-and-wife team Per and Winnie Enevoldsen, has attempted in recent months to move its mid-market brand into a more exclusive category by increasing prices and vastly expanding its product range. But this strategy backfired as large segments of its traditional customer base shied away from Pandora’s pricier offerings.
“This business requires a reset back to its mass market, affordable luxury positioning and good old fashioned execution of the basics around price, range promotion, inventory upgrades and new accounts,” said Mr Leighton, who is also chairman of UK fashion chain Peacock and set-top box maker Pace.
Pandora said prices on key products have already been cut and no fresh retail price rises are likely either this year or next. It also plans a more aggressive marketing effort in emerging markets and said it would open 190 new concept stores in the second half of 2011.
Pandora’s travails are being seen in Copenhagen as a major blow to Axcel, the Danish private equity group that floated the jeweller in a highly successful IPO in October 2010. The float, priced at DKr210 a share, gave Pandora a market capitalisation of about DKr27bn.
The shares, which had briefly climbed above DKr370 earlier this year, fell to DKr51 on Tuesday afternoon, wiping DKr12.6bn off the company’s market value in one day.
Goldman Sachs, JPMorgan, Morgan Stanley and Nordea Bank were joint global co-ordinators and bookrunners for Pandora’s IPO.
Axle, which bought a 60 per cent stake in the company in 2008 from its founding family, still owns 32 per cent of the shares.
Mikkel Vendelin Olesen, Pandora’s chief executive, left the company on Tuesday “with immediate effect.” His position will be filled temporarily by Marcello Bottoli, a board member, until a new chief is appointed.
The 65 per cent plunge in Pandora shares on the Copenhagen Stock Exchange came less than a year after it raised about DKr10bn (€1.3bn) from an initial public offering that was one of the biggest in Europe last year.
Pandora, best known for the charm bracelets that it sells in 55 countries, cut its 2011 revenue growth forecast from at least 30 per cent to zero, having only upgraded its forecast from 25 per cent on April 18 this year and reiterated this guidance on May 19.
It also cut the full-year forecast for its earnings before interest, tax, depreciation and amortisation margin from at least 40 per cent to the “low thirties”.
The company blamed a “sharp revenue deterioration” late in the second quarter for a slowdown in its year-on-year revenue growth to only 3.6 per cent in the second quarter, down from 41 per cent in the first quarter and 67 per cent in the preceding quarter.
Its ebitda fell by 6.2 per cent to DKr512m in the second quarter.
Pandora cited a myriad of contributing factors including hefty increases in gold and silver wholesale prices, increasingly price-sensitive customers, excessive production and gorged inventory lists.
“This performance and these results are totally unacceptable. There are no excuses for them, they are largely self-inflicted, they reflect poor execution,” said Allan Leighton, Pandora’s board chairman.
The situation “can be remedied – but over time,” added Mr Leighton, the former chairman of the Royal Mail in the UK.
Pandora, founded in 1982 by husband-and-wife team Per and Winnie Enevoldsen, has attempted in recent months to move its mid-market brand into a more exclusive category by increasing prices and vastly expanding its product range. But this strategy backfired as large segments of its traditional customer base shied away from Pandora’s pricier offerings.
“This business requires a reset back to its mass market, affordable luxury positioning and good old fashioned execution of the basics around price, range promotion, inventory upgrades and new accounts,” said Mr Leighton, who is also chairman of UK fashion chain Peacock and set-top box maker Pace.
Pandora said prices on key products have already been cut and no fresh retail price rises are likely either this year or next. It also plans a more aggressive marketing effort in emerging markets and said it would open 190 new concept stores in the second half of 2011.
Pandora’s travails are being seen in Copenhagen as a major blow to Axcel, the Danish private equity group that floated the jeweller in a highly successful IPO in October 2010. The float, priced at DKr210 a share, gave Pandora a market capitalisation of about DKr27bn.
The shares, which had briefly climbed above DKr370 earlier this year, fell to DKr51 on Tuesday afternoon, wiping DKr12.6bn off the company’s market value in one day.
Goldman Sachs, JPMorgan, Morgan Stanley and Nordea Bank were joint global co-ordinators and bookrunners for Pandora’s IPO.
Axle, which bought a 60 per cent stake in the company in 2008 from its founding family, still owns 32 per cent of the shares.
Mikkel Vendelin Olesen, Pandora’s chief executive, left the company on Tuesday “with immediate effect.” His position will be filled temporarily by Marcello Bottoli, a board member, until a new chief is appointed.
Top 10 Most Widely Followed Large Cap Stocks today august 2 2011
Top 10 Most Widely Followed Large Cap Stocks today august 2 2011 : Top 10 Most Widely Followed Large Cap Stocks: AAPL, RIMM, INTC, RIG, BRCM, FSLR, JNPR, CSCO, QCOM, ORCL, Below are the top 10 most widely followed Large Cap stocks, based on the number of brokerage analysts following them
Apple Inc. (NASDAQ:AAPL) is the 1st most widely followed stock in this segment of the market. It is covered by 56 analysts. It currently receives positive investment ratings from 53 brokerage analysts.
Research In Motion Limited (USA) (NASDAQ:RIMM) is the 2nd most widely followed stock in this segment of the market. It is covered by 56 analysts. It currently receives positive investment ratings from 12 brokerage analysts.
Intel Corporation (NASDAQ:INTC) is the 3rd most widely followed stock in this segment of the market. It is covered by 54 analysts. It currently receives positive investment ratings from 31 brokerage analysts.
Transocean LTD (NYSE:RIG) is the 4th most widely followed stock in this segment of the market. It is covered by 48 analysts. It currently receives positive investment ratings from 29 brokerage analysts.
Broadcom Corporation (NASDAQ:BRCM) is the 5th most widely followed stock in this segment of the market. It is covered by 46 analysts. It currently receives positive investment ratings from 31 brokerage analysts.
First Solar, Inc. (NASDAQ:FSLR) is the 6th most widely followed stock in this segment of the market. It is covered by 46 analysts. It currently receives positive investment ratings from 25 brokerage analysts.
Juniper Networks, Inc. (NYSE:JNPR) is the 7th most widely followed stock in this segment of the market. It is covered by 45 analysts. It currently receives positive investment ratings from 20 brokerage analysts.
Cisco Systems, Inc. (NASDAQ:CSCO) is the 8th most widely followed stock in this segment of the market. It is covered by 45 analysts. It currently receives positive investment ratings from 17 brokerage analysts.
QUALCOMM, Inc. (NASDAQ:QCOM) is the 9th most widely followed stock in this segment of the market. It is covered by 44 analysts. It currently receives positive investment ratings from 37 brokerage analysts.
Oracle Corporation (NASDAQ:ORCL) is the 10th most widely followed stock in this segment of the market. It is covered by 42 analysts. It currently receives positive investment ratings from 34 brokerage analysts.
Apple Inc. (NASDAQ:AAPL) is the 1st most widely followed stock in this segment of the market. It is covered by 56 analysts. It currently receives positive investment ratings from 53 brokerage analysts.
Research In Motion Limited (USA) (NASDAQ:RIMM) is the 2nd most widely followed stock in this segment of the market. It is covered by 56 analysts. It currently receives positive investment ratings from 12 brokerage analysts.
Intel Corporation (NASDAQ:INTC) is the 3rd most widely followed stock in this segment of the market. It is covered by 54 analysts. It currently receives positive investment ratings from 31 brokerage analysts.
Transocean LTD (NYSE:RIG) is the 4th most widely followed stock in this segment of the market. It is covered by 48 analysts. It currently receives positive investment ratings from 29 brokerage analysts.
Broadcom Corporation (NASDAQ:BRCM) is the 5th most widely followed stock in this segment of the market. It is covered by 46 analysts. It currently receives positive investment ratings from 31 brokerage analysts.
First Solar, Inc. (NASDAQ:FSLR) is the 6th most widely followed stock in this segment of the market. It is covered by 46 analysts. It currently receives positive investment ratings from 25 brokerage analysts.
Juniper Networks, Inc. (NYSE:JNPR) is the 7th most widely followed stock in this segment of the market. It is covered by 45 analysts. It currently receives positive investment ratings from 20 brokerage analysts.
Cisco Systems, Inc. (NASDAQ:CSCO) is the 8th most widely followed stock in this segment of the market. It is covered by 45 analysts. It currently receives positive investment ratings from 17 brokerage analysts.
QUALCOMM, Inc. (NASDAQ:QCOM) is the 9th most widely followed stock in this segment of the market. It is covered by 44 analysts. It currently receives positive investment ratings from 37 brokerage analysts.
Oracle Corporation (NASDAQ:ORCL) is the 10th most widely followed stock in this segment of the market. It is covered by 42 analysts. It currently receives positive investment ratings from 34 brokerage analysts.
Oil prices august 2 2011 Down below $94 per barrel
Oil prices august 2 2011 Down below $94 per barrel ; Oil fell below $94 per barrel Tuesday as investors continued to worry about weaker economic growth.
Benchmark West Texas Intermediate crude for September delivery was 74 cents lower, at $94.15 per barrel in morning trading on the New York Mercantile Exchange. Earlier, it was as low as $93.75. Brent crude, which is used to price many international oil varieties, lost 43 cents at $116.38 per barrel on the ICE Futures exchange in London.
Crude has dropped for four straight trading days as oil supplies grew in the U.S., and reports on manufacturing pointed to tepid growth in the U.S. and China. PFGBest analyst Phil Flynn said if it weren't for the upcoming hurricane season and a weaker dollar, oil would be much lower.
"We should be trading $10 per barrel below where we are," Flynn said.
Traders are keeping close watch on Tropical Storm Emily, which is expected to reach Haiti within a day. Storms that move into the Gulf of Mexico can disrupt the network of oil production platforms and pipelines in the area and force oil companies to evacuate personnel. That slows down production operations and cuts into U.S. supplies, so prices tend to rise. Current forecasts have Emily staying in the Atlantic, away from the Gulf and on a path for Florida and the Southeast U.S.
Analyst Addison Armstrong noted that about 2.3 percent of oil production and 1 percent of natural gas production in the Gulf of Mexico remains temporarily shut down after Tropical Storm Don swept through the Gulf last week.
Benchmark West Texas Intermediate crude for September delivery was 74 cents lower, at $94.15 per barrel in morning trading on the New York Mercantile Exchange. Earlier, it was as low as $93.75. Brent crude, which is used to price many international oil varieties, lost 43 cents at $116.38 per barrel on the ICE Futures exchange in London.
Crude has dropped for four straight trading days as oil supplies grew in the U.S., and reports on manufacturing pointed to tepid growth in the U.S. and China. PFGBest analyst Phil Flynn said if it weren't for the upcoming hurricane season and a weaker dollar, oil would be much lower.
"We should be trading $10 per barrel below where we are," Flynn said.
Traders are keeping close watch on Tropical Storm Emily, which is expected to reach Haiti within a day. Storms that move into the Gulf of Mexico can disrupt the network of oil production platforms and pipelines in the area and force oil companies to evacuate personnel. That slows down production operations and cuts into U.S. supplies, so prices tend to rise. Current forecasts have Emily staying in the Atlantic, away from the Gulf and on a path for Florida and the Southeast U.S.
Analyst Addison Armstrong noted that about 2.3 percent of oil production and 1 percent of natural gas production in the Gulf of Mexico remains temporarily shut down after Tropical Storm Don swept through the Gulf last week.
Top 10 Rebounding S&P 500 Stocks August 02, 2011
Top 10 Rebounding S&P 500 Stocks August 02, 2011 : Below are the top 10 rebounding stocks in the S&P 500 INDEX,RTH. These companies are interesting turnaround stories, COG, NFLX, PCLN, CMG, TSO, ANF, NOV, CBS, NSM, RRC ;
Cabot Oil & Gas Corporation (NYSE:COG) is the 1st best rebounding stock in this segment of the market. It has risen 183% from its 52-week low. It is now trading at 95% of its 52-week high.
Netflix, Inc. (NASDAQ:NFLX) is the 2nd best rebounding stock in this segment of the market. It has risen 167% from its 52-week low. It is now trading at 86% of its 52-week high.
priceline.com Incorporated (NASDAQ:PCLN) is the 3rd best rebounding stock in this segment of the market. It has risen 139% from its 52-week low. It is now trading at 96% of its 52-week high.
Chipotle Mexican Grill, Inc. (NYSE:CMG) is the 4th best rebounding stock in this segment of the market. It has risen 132% from its 52-week low. It is now trading at 97% of its 52-week high.
Tesoro Corporation (NYSE:TSO) is the 5th best rebounding stock in this segment of the market. It has risen 128% from its 52-week low. It is now trading at 86% of its 52-week high.
Abercrombie & Fitch Co. (NYSE:ANF) is the 6th best rebounding stock in this segment of the market. It has risen 122% from its 52-week low. It is now trading at 96% of its 52-week high.
National-Oilwell Varco, Inc. (NYSE:NOV) is the 7th best rebounding stock in this segment of the market. It has risen 120% from its 52-week low. It is now trading at 92% of its 52-week high.
CBS Corporation (NYSE:CBS) is the 8th best rebounding stock in this segment of the market. It has risen 110% from its 52-week low. It is now trading at 92% of its 52-week high.
National Semiconductor Corporation (NYSE:NSM) is the 9th best rebounding stock in this segment of the market. It has risen 109% from its 52-week low. It is now trading at 100% of its 52-week high.
Range Resources Corp. (NYSE:RRC) is the 10th best rebounding stock in this segment of the market. It has risen 106% from its 52-week low. It is now trading at 100% of its 52-week high.
Cabot Oil & Gas Corporation (NYSE:COG) is the 1st best rebounding stock in this segment of the market. It has risen 183% from its 52-week low. It is now trading at 95% of its 52-week high.
Netflix, Inc. (NASDAQ:NFLX) is the 2nd best rebounding stock in this segment of the market. It has risen 167% from its 52-week low. It is now trading at 86% of its 52-week high.
priceline.com Incorporated (NASDAQ:PCLN) is the 3rd best rebounding stock in this segment of the market. It has risen 139% from its 52-week low. It is now trading at 96% of its 52-week high.
Chipotle Mexican Grill, Inc. (NYSE:CMG) is the 4th best rebounding stock in this segment of the market. It has risen 132% from its 52-week low. It is now trading at 97% of its 52-week high.
Tesoro Corporation (NYSE:TSO) is the 5th best rebounding stock in this segment of the market. It has risen 128% from its 52-week low. It is now trading at 86% of its 52-week high.
Abercrombie & Fitch Co. (NYSE:ANF) is the 6th best rebounding stock in this segment of the market. It has risen 122% from its 52-week low. It is now trading at 96% of its 52-week high.
National-Oilwell Varco, Inc. (NYSE:NOV) is the 7th best rebounding stock in this segment of the market. It has risen 120% from its 52-week low. It is now trading at 92% of its 52-week high.
CBS Corporation (NYSE:CBS) is the 8th best rebounding stock in this segment of the market. It has risen 110% from its 52-week low. It is now trading at 92% of its 52-week high.
National Semiconductor Corporation (NYSE:NSM) is the 9th best rebounding stock in this segment of the market. It has risen 109% from its 52-week low. It is now trading at 100% of its 52-week high.
Range Resources Corp. (NYSE:RRC) is the 10th best rebounding stock in this segment of the market. It has risen 106% from its 52-week low. It is now trading at 100% of its 52-week high.
Gold stocks Review august 2 2011, Centerra Gold, Gold Miners ETF (GDX), Eldorado Gold
Gold stocks Review august 2 2011, Centerra Gold, Gold Miners ETF (GDX), Eldorado Gold : Gold stocks climbed higher Tuesday morning as the Market Vectors Gold Miners ETF (GDX) advanced $0.41, or 0.7%, to $57.78 per share. Strength in gold stocks and the GDX was fueled by the surging gold, which hit a series of new record highs today. Spot gold touched a new all-time high of $1,640 per ounce on concerns that the U.S. economy may be slipping into a double-dip recession.
Gold stocks in the news on Tuesday included Eldorado Gold (EGO0, which reported second quarter earnings in-line with analyst expectations. However, the company cut its full-year production guidance by roughly 4% to 700,000 to 725,000 gold ounces at cash costs of $390 to $410 per ounce. Shares of EGO fell $0.06 to $17.35
TD Securities analyst Steven Green maintained the firm $24.00 target price on shares of EGO, noting that “We view the guidance reduction as a relatively minor issue — the company is still in a position to potentially meet the lower end of the original guidance range. This is just a delay in the treatment of the Efemcukuru concentrate with the mine now fully operational.”
Other gold stocks in the news Thursday included Centamin Egypt (CEE.TSX), which announced second quarter operational results. Gold production in the quarter was 48,000 ounces at cash costs of $606 per ounce versus expectations of 50,000 to 60,000 ounces. Centamin revised its 2011 guidance lower from 250,000 to 290,000 ounces to 200,000 to 210,000 ounces. Shares of Centamin plunged 16.3% to C$1.80 per share early Tuesday.
Dundee Securities noted that “While the stock is down significantly, it’s yet to be seen at this point whether the issues hampering the stock are temporary or expected to be longer-lasting. The company has indicated that this is temporary and things have returned to normal and a massive overreaction by the market may provide a buying opportunity for investors willing to tolerate the country risk in exchange for exposure to an impressive gold deposit.”
Centerra Gold (CG.TSX) was another gold stock in the news Tuesday, reporting second quarter earnings of $0.30 versus consensus analyst expectations of $0.36. Scotia Capital’s analyst Trevor Turnbull, who has a C$22.00 one year price target, noted: “Gold production was 4% better than our forecast although partially offset by 5% higher total cash costs. There are no changes to 2011 production or cost guidance of 600,000-650,000 oz at $460/oz-$495/oz. However, materially higher depreciation from amortization of waste removal, greater stock-based compensation costs, and an expanded exploration budget from the ATO discovery greatly reduced earnings.” Shares of Centerra fell 2.3% to C$18.29.
Helping to boost gold and the gold stocks was news that the Bank of Korea increased the amount of gold it holds for the first time in 13 years. The move is likely an effort to diversify its portfolio away from the U.S. dollar.
Other notable gold stocks moving higher included GDX components Agnico-Eagle Mines (AEM) and AngloGold Ashanti (AU). AEM and AU rose 0.4% and 1.0%, respectively.
Gold stocks in the news on Tuesday included Eldorado Gold (EGO0, which reported second quarter earnings in-line with analyst expectations. However, the company cut its full-year production guidance by roughly 4% to 700,000 to 725,000 gold ounces at cash costs of $390 to $410 per ounce. Shares of EGO fell $0.06 to $17.35
TD Securities analyst Steven Green maintained the firm $24.00 target price on shares of EGO, noting that “We view the guidance reduction as a relatively minor issue — the company is still in a position to potentially meet the lower end of the original guidance range. This is just a delay in the treatment of the Efemcukuru concentrate with the mine now fully operational.”
Other gold stocks in the news Thursday included Centamin Egypt (CEE.TSX), which announced second quarter operational results. Gold production in the quarter was 48,000 ounces at cash costs of $606 per ounce versus expectations of 50,000 to 60,000 ounces. Centamin revised its 2011 guidance lower from 250,000 to 290,000 ounces to 200,000 to 210,000 ounces. Shares of Centamin plunged 16.3% to C$1.80 per share early Tuesday.
Dundee Securities noted that “While the stock is down significantly, it’s yet to be seen at this point whether the issues hampering the stock are temporary or expected to be longer-lasting. The company has indicated that this is temporary and things have returned to normal and a massive overreaction by the market may provide a buying opportunity for investors willing to tolerate the country risk in exchange for exposure to an impressive gold deposit.”
Centerra Gold (CG.TSX) was another gold stock in the news Tuesday, reporting second quarter earnings of $0.30 versus consensus analyst expectations of $0.36. Scotia Capital’s analyst Trevor Turnbull, who has a C$22.00 one year price target, noted: “Gold production was 4% better than our forecast although partially offset by 5% higher total cash costs. There are no changes to 2011 production or cost guidance of 600,000-650,000 oz at $460/oz-$495/oz. However, materially higher depreciation from amortization of waste removal, greater stock-based compensation costs, and an expanded exploration budget from the ATO discovery greatly reduced earnings.” Shares of Centerra fell 2.3% to C$18.29.
Helping to boost gold and the gold stocks was news that the Bank of Korea increased the amount of gold it holds for the first time in 13 years. The move is likely an effort to diversify its portfolio away from the U.S. dollar.
Other notable gold stocks moving higher included GDX components Agnico-Eagle Mines (AEM) and AngloGold Ashanti (AU). AEM and AU rose 0.4% and 1.0%, respectively.
Eldorado gold (EGO) stock Predictions and Reviews 2011 - 2012
Eldorado gold (EGO) stock Predictions and Reviews 2011 - 2012 : Eldorado Gold EGO reported second-quarter results that largely met our expectations. While the firm guided its 2011 gold production slightly down, we think investors would be better served by focusing on the progress of Eldorado's bevy of growth projects, such as Efemcukuru, Eastern Dragon, and Phase IV of the Kisladag expansion project.
Eldorado's gold production of 162,000 ounces during the quarter represented a 9% increase from the first quarter, with most of the increase stemming from the successful implementation of Phase III of the Kisladag expansion, which lifted ore throughput to 12.5 million tons per year. A much more significant move for the company, however, is the potential Phase IV expansion at Kisladag, which would double ore throughput to 25 million tons per year.
We think the successful implantation of Phase IV at Kisladag would add roughly $2 of equity value per share, but we only incorporate this in our scenario analysis for now (and not in our fair value estimate for Eldorado) given that management has not yet made a positive construction decision on this expansion project. Management said during the call that an updated study on Phase IV would be released within the next couple weeks.
In addition to the potential expansion at Kisladag, Eldorado is also moving the chains on the Efemcukuru and Eastern Dragon projects. Efemcukuru poured its first gold during the quarter, but it could take several quarters for this underground mine to reach run-rate production levels because of delayed construction on the concentrate treatment plant. Eastern Dragon also experienced a slight delay in its construction schedule, as management now expects gold production to start in the first quarter of 2012 (as opposed to the fourth quarter of 2011). However, slight hiccups are to be expected at any new mine, and we are satisfied that progress at Efemcukuru and Eastern Dragon have generally been on pace.
Like many of its peers within the gold mining industry, Eldorado experienced significant production cost inflation during the quarter, with total cash costs coming in at $477 per ounce compared to $410 per ounce in the year-ago quarter. However, the firm's operational cash costs did not increase very much; instead, much of this increase stemmed from higher royalties as well as the Qinghai province's implementation of a new ecological compensation fee on Eldorado's Tanjianshan gold mine.
The fee is assessed at CNY 40 per ton milled, which we estimate will increase unit cash costs by roughly $60 per gold ounce going forward given the current USD/CNY exchange rate. While this ecological fee is a provincial initiative and does not apply to Eldorado's other two Chinese gold mines, we think that if the other Chinese provinces follow Qinghai's example, this could significantly hurt Eldorado.
Eldorado's gold production of 162,000 ounces during the quarter represented a 9% increase from the first quarter, with most of the increase stemming from the successful implementation of Phase III of the Kisladag expansion, which lifted ore throughput to 12.5 million tons per year. A much more significant move for the company, however, is the potential Phase IV expansion at Kisladag, which would double ore throughput to 25 million tons per year.
We think the successful implantation of Phase IV at Kisladag would add roughly $2 of equity value per share, but we only incorporate this in our scenario analysis for now (and not in our fair value estimate for Eldorado) given that management has not yet made a positive construction decision on this expansion project. Management said during the call that an updated study on Phase IV would be released within the next couple weeks.
In addition to the potential expansion at Kisladag, Eldorado is also moving the chains on the Efemcukuru and Eastern Dragon projects. Efemcukuru poured its first gold during the quarter, but it could take several quarters for this underground mine to reach run-rate production levels because of delayed construction on the concentrate treatment plant. Eastern Dragon also experienced a slight delay in its construction schedule, as management now expects gold production to start in the first quarter of 2012 (as opposed to the fourth quarter of 2011). However, slight hiccups are to be expected at any new mine, and we are satisfied that progress at Efemcukuru and Eastern Dragon have generally been on pace.
Like many of its peers within the gold mining industry, Eldorado experienced significant production cost inflation during the quarter, with total cash costs coming in at $477 per ounce compared to $410 per ounce in the year-ago quarter. However, the firm's operational cash costs did not increase very much; instead, much of this increase stemmed from higher royalties as well as the Qinghai province's implementation of a new ecological compensation fee on Eldorado's Tanjianshan gold mine.
The fee is assessed at CNY 40 per ton milled, which we estimate will increase unit cash costs by roughly $60 per gold ounce going forward given the current USD/CNY exchange rate. While this ecological fee is a provincial initiative and does not apply to Eldorado's other two Chinese gold mines, we think that if the other Chinese provinces follow Qinghai's example, this could significantly hurt Eldorado.
Monday, August 1, 2011
Top European Income ETFs
Top European Income ETFs : One ETF that continues to dominate the international camp, PowerShares International Dividend Achievers (PID), stays while Europe 2001 HOLDRS (EKH) flipped for Spain. The iShares MSCI EAFE Value (EFV) remains.
What is remarkable to me about these funds is their ability to push past other growth regions in a bid for bargains in Europe’s basement. Gold continues to hold its own, despite my fundamental interest in other sector picks.
One ETF that continues to dominate the international camp, PowerShares International Dividend Achievers (PID), stays while Europe 2001 HOLDRS (EKH) flipped for Spain. The iShares MSCI EAFE Value (EFV) remains.
What is remarkable to me about these funds is their ability to push past other growth regions in a bid for bargains in Europe’s basement. Gold continues to hold its own, despite my fundamental interest in other sector picks.
iShares COMEX Gold (IAU)
This ETF benchmarks to the actual price of gold. The trust’s objective is for the share price to represent the price of gold held by the trust at a certain time, minus the trust’s expenses.
It began trading in January 2005 and has a market value of over $7 billion. While Global Quant continues to like it, I continue to find little fundamental evidence to support it.
iShares MSCI EAFE Value (EFV)
The MSCI EAFE Value Index underlies this ETF that began trading in August 2005. Its market value of over $1.4 billion makes it liquid, but watch worthy.
The top three sectors are financials (34.8%), energy (12%), and health care (10%). The top five countries are Japan (19.7%), UK (18.7%), France (12%), Germany (9.3%), and Australia (8.5%).
iShares MSCI Spain (EWP)
In my opinion, if Spain goes, the Eurozone goes. It’s too big to fail, and too big to bail out.
EWP seeks investment results that correspond to the price and yield performance of the MSCI Spain Index. It began trading in March 1996 and has a market value of over $220 million.
The top three sectors are financials (42.5%), telecommunications services (18.3%), and utilities (14.7%).
What is remarkable to me about these funds is their ability to push past other growth regions in a bid for bargains in Europe’s basement. Gold continues to hold its own, despite my fundamental interest in other sector picks.
One ETF that continues to dominate the international camp, PowerShares International Dividend Achievers (PID), stays while Europe 2001 HOLDRS (EKH) flipped for Spain. The iShares MSCI EAFE Value (EFV) remains.
What is remarkable to me about these funds is their ability to push past other growth regions in a bid for bargains in Europe’s basement. Gold continues to hold its own, despite my fundamental interest in other sector picks.
iShares COMEX Gold (IAU)
This ETF benchmarks to the actual price of gold. The trust’s objective is for the share price to represent the price of gold held by the trust at a certain time, minus the trust’s expenses.
It began trading in January 2005 and has a market value of over $7 billion. While Global Quant continues to like it, I continue to find little fundamental evidence to support it.
iShares MSCI EAFE Value (EFV)
The MSCI EAFE Value Index underlies this ETF that began trading in August 2005. Its market value of over $1.4 billion makes it liquid, but watch worthy.
The top three sectors are financials (34.8%), energy (12%), and health care (10%). The top five countries are Japan (19.7%), UK (18.7%), France (12%), Germany (9.3%), and Australia (8.5%).
iShares MSCI Spain (EWP)
In my opinion, if Spain goes, the Eurozone goes. It’s too big to fail, and too big to bail out.
EWP seeks investment results that correspond to the price and yield performance of the MSCI Spain Index. It began trading in March 1996 and has a market value of over $220 million.
The top three sectors are financials (42.5%), telecommunications services (18.3%), and utilities (14.7%).
US GDP second quarter of 2011
US GDP second quarter of 2011 : Bureau of Economic Analysis today reported that real gross domestic product in the US increased at an annual rate of 1.3% in the second quarter of 2011. acceleration in real GDP was driven primarily by a slowdown in import demand, stronger federal spending, and a pickup in non-residential fixed investment. Real gross domestic purchases - GDP minus net exports - was weaker than the headline, increasing 0.7% on the quarter, reflecting the positive contribution from external demand. Domestic demand is barely growing - remember these are annualized rates, not q.q rates
The BEA also released the 2011 annual revision of the national economic accounts. The general economic picture from 2007 to 2010 was not significantly changed. However, the revised estimates show a sharper cyclical contraction in GDP during 2008 and the first half of 2009. Over the six quarters of the contraction, the cumulative decrease in GDP was 5.1%, compared with 4.1% in the previous estimates.
Second-quarter GDP highlights:
The following contributed to the pickup in real GDP growth:
*Imports slowed, reflecting mainly downturns in “petroleum and products” and in “autos, engines, and parts”;
*Federal government spending turned up, reflecting an upturn in national defense spending;
*Business investment picked up, reflecting an upturn in structures investment.
Offsetting these contributions to the pickup in GDP growth was a sharp slowdown in consumer spending, led by a downturn in motor vehicles and parts.
Gross domestic purchases prices:
Prices of goods and services purchased by US residents slowed in the second quarter, increasing 3.2% after increasing 4.0% in the first quarter. Energy prices slowed, while food prices grew at about the same rate.
Excluding food and energy, prices rose 2.6% in the second quarter after rising 2.4% in the first quarter.
On the revisions
The drop in Q1 2011 growth to 0.4% was certainly not expected. Much of it was due to a reclassification of domestic inventory build (adds to GDP) to imports (subtracts from GDP). But there's a lot more.
Today's estimates reflect the annual revisions of the US national accounts. The revisions date back to 2003, which show a deeper recession and a quicker rebound. We now know that GDP bottomed in the second quarter of 2009, after having fallen 5.1% since the fourth quarter of 2007. Previously, the cumulative drop in GDP was 4.0%. The recovery through Q1 2011 was slightly faster, 4.9% in the pre-revised data compared to 4.64% in the revised series. (Rdan....4.9% is correct figure)
Broadly speaking, though, the revisions show that economic momentum is petering out on a 6-month/6-month annualized basis. In sum, nominal spending on consumption goods and services was revised downward by 307.8 billion dollars spanning the years 2008-2010, and nominal fixed investment spending dropped by 83.9 billion dollars compared to previous estimates. Government spending is proving to be less of a drag than previously thought (in nominal terms), having been revised 5 billion dollars higher compared to previous estimates over the same period.
On balance, the expected 2011 growth trajectory will struggle to top 2%, as a rather positive 2H 2011 of 3.0% and 3.5% in Q3 and Q4, respectively, would imply a 1.9% Y/Y pace for 2011 as a while. I seriously doubt we'll get that trajectory in H2 2011 - we'll have to see what economists now forecast - but the downside risk to the economy is pervasive. It's not just Japan.
The BEA also released the 2011 annual revision of the national economic accounts. The general economic picture from 2007 to 2010 was not significantly changed. However, the revised estimates show a sharper cyclical contraction in GDP during 2008 and the first half of 2009. Over the six quarters of the contraction, the cumulative decrease in GDP was 5.1%, compared with 4.1% in the previous estimates.
Second-quarter GDP highlights:
The following contributed to the pickup in real GDP growth:
*Imports slowed, reflecting mainly downturns in “petroleum and products” and in “autos, engines, and parts”;
*Federal government spending turned up, reflecting an upturn in national defense spending;
*Business investment picked up, reflecting an upturn in structures investment.
Offsetting these contributions to the pickup in GDP growth was a sharp slowdown in consumer spending, led by a downturn in motor vehicles and parts.
Gross domestic purchases prices:
Prices of goods and services purchased by US residents slowed in the second quarter, increasing 3.2% after increasing 4.0% in the first quarter. Energy prices slowed, while food prices grew at about the same rate.
Excluding food and energy, prices rose 2.6% in the second quarter after rising 2.4% in the first quarter.
On the revisions
The drop in Q1 2011 growth to 0.4% was certainly not expected. Much of it was due to a reclassification of domestic inventory build (adds to GDP) to imports (subtracts from GDP). But there's a lot more.
Today's estimates reflect the annual revisions of the US national accounts. The revisions date back to 2003, which show a deeper recession and a quicker rebound. We now know that GDP bottomed in the second quarter of 2009, after having fallen 5.1% since the fourth quarter of 2007. Previously, the cumulative drop in GDP was 4.0%. The recovery through Q1 2011 was slightly faster, 4.9% in the pre-revised data compared to 4.64% in the revised series. (Rdan....4.9% is correct figure)
Broadly speaking, though, the revisions show that economic momentum is petering out on a 6-month/6-month annualized basis. In sum, nominal spending on consumption goods and services was revised downward by 307.8 billion dollars spanning the years 2008-2010, and nominal fixed investment spending dropped by 83.9 billion dollars compared to previous estimates. Government spending is proving to be less of a drag than previously thought (in nominal terms), having been revised 5 billion dollars higher compared to previous estimates over the same period.
On balance, the expected 2011 growth trajectory will struggle to top 2%, as a rather positive 2H 2011 of 3.0% and 3.5% in Q3 and Q4, respectively, would imply a 1.9% Y/Y pace for 2011 as a while. I seriously doubt we'll get that trajectory in H2 2011 - we'll have to see what economists now forecast - but the downside risk to the economy is pervasive. It's not just Japan.
Ford Motor (NYSE:F) stock prices outlook August 1 2011
Ford Motor (NYSE:F) stock prices outlook August 1 2011 ; Ford Motor (NYSE:F) is also among the leaders in today’s pre-market with its stock attempting to rebound from a drop of more than 8% in the last 5 days. Ford appears to be bouncing from the lower support line of the downtrend channel, so definitely has room to run towards its 50 day moving average around the $13.75 mark.
Ford failed to impress investors when it reported earnings earlier this week making its stock to continue on its downward trajectory. Ford earnings showed a continuing struggle for the company to optimize their models versus raising commodity costs.
Pre-Market Mover For August 1 2011
Pre-Market Mover For August 1 2011 ; US stock futures were indicating a significant higher open early Monday morning, as investors cheer the deal reached by President Obama and congressional leaders that will allow the raising of the debt ceiling, eliminating the possibility of the US Government defaulting on its debt.
Last week, stocks posted their worst weekly performance in more than a year, as investors worried that Washington wouldn't reach an agreement before the deadline of Aug. 2.
Humana Inc. (HUM: News ) is gaining nearly 6% to $78.65 as its second quarter profit increased from the previous year. Consolidated revenues increased 8%. The company raised its earnings per share guidance for the year ending December 31, 2011.
Honda Motor Co., Ltd. (HMC: News ) is up 2% to $40.51 as the automaker lifted its earnings and sales forecast for fiscal 2012. The company's first quarter profit declined 88.3%, with sharp declines in automobile sales and in all regions due to the impact of the March 11 Great East Japan Earthquake.
PAETEC Holding Corp. (PAET: News ) is surging 21% to $5.35 as it agreed to be bought by Windstream Corp. (WIN) in a transaction valued at around $2.3 billion. PAETEC shareholders would receive 0.460 common shares of Windstream for each PAETEC share owned.
Westwood One Inc.'s (WWON: News ) trading was halted amid news that the company and Dial Global, a division of Triton Media Group LLC, announced a definitive agreement to merge in a stock for stock transaction.
SeraCare Life Sciences, Inc. (SRLS: News ) is up 5% to $4 as the life sciences company initiated a process to explore and evaluate potential strategic alternatives, which may include a sale or other transaction.
Biogen Idec Inc. (BIIB: News ) is gaining more than 5% to $107.50 in pre-market trading. Apple Inc. (AAPL: News ) is up nearly 2% to $397.03.
Teva Pharmaceutical Industries Ltd.'s (TEVA: News ) trading was halted amid news that its Phase III BRAVO study, did not achieve its primary endpoint of reducing the annualized relapse rate. Phase III BRAVO study was designed to evaluate the efficacy, safety and tolerability of oral laquinimod compared to placebo and to provide a benefit-risk assessment comparing oral laquinimod and a reference arm of injectable Interferon ß-1a.
Stocks of skilled nursing home operators are falling based on the news that the Centers for Medicare & Medicaid Services issued a final rule that updates Medicare payment policies and rates for more than 1,200 freestanding and hospital-based inpatient rehabilitation facilities in Fiscal Year 2012. CMS projects that total payments under the IRF PPS will increase by $150 million in Fiscal year 2012. Sun Healthcare Group Inc. (SUNH: News ) is falling 47% to $3.68. Kindred Healthcare Inc. (KND: News ) is down 26% to $13.89. Skilled Healthcare Group, Inc. (SKH: News ) is falling 28% to $6.35.
Last week, stocks posted their worst weekly performance in more than a year, as investors worried that Washington wouldn't reach an agreement before the deadline of Aug. 2.
Humana Inc. (HUM: News ) is gaining nearly 6% to $78.65 as its second quarter profit increased from the previous year. Consolidated revenues increased 8%. The company raised its earnings per share guidance for the year ending December 31, 2011.
Honda Motor Co., Ltd. (HMC: News ) is up 2% to $40.51 as the automaker lifted its earnings and sales forecast for fiscal 2012. The company's first quarter profit declined 88.3%, with sharp declines in automobile sales and in all regions due to the impact of the March 11 Great East Japan Earthquake.
PAETEC Holding Corp. (PAET: News ) is surging 21% to $5.35 as it agreed to be bought by Windstream Corp. (WIN) in a transaction valued at around $2.3 billion. PAETEC shareholders would receive 0.460 common shares of Windstream for each PAETEC share owned.
Westwood One Inc.'s (WWON: News ) trading was halted amid news that the company and Dial Global, a division of Triton Media Group LLC, announced a definitive agreement to merge in a stock for stock transaction.
SeraCare Life Sciences, Inc. (SRLS: News ) is up 5% to $4 as the life sciences company initiated a process to explore and evaluate potential strategic alternatives, which may include a sale or other transaction.
Biogen Idec Inc. (BIIB: News ) is gaining more than 5% to $107.50 in pre-market trading. Apple Inc. (AAPL: News ) is up nearly 2% to $397.03.
Teva Pharmaceutical Industries Ltd.'s (TEVA: News ) trading was halted amid news that its Phase III BRAVO study, did not achieve its primary endpoint of reducing the annualized relapse rate. Phase III BRAVO study was designed to evaluate the efficacy, safety and tolerability of oral laquinimod compared to placebo and to provide a benefit-risk assessment comparing oral laquinimod and a reference arm of injectable Interferon ß-1a.
Stocks of skilled nursing home operators are falling based on the news that the Centers for Medicare & Medicaid Services issued a final rule that updates Medicare payment policies and rates for more than 1,200 freestanding and hospital-based inpatient rehabilitation facilities in Fiscal Year 2012. CMS projects that total payments under the IRF PPS will increase by $150 million in Fiscal year 2012. Sun Healthcare Group Inc. (SUNH: News ) is falling 47% to $3.68. Kindred Healthcare Inc. (KND: News ) is down 26% to $13.89. Skilled Healthcare Group, Inc. (SKH: News ) is falling 28% to $6.35.
Apple stock prices analyst august 1 2011
Apple stock prices analyst august 1 2011, Appl stock, aapl resistance levels August 2011 ; Apple (NASDAQ:AAPL) that is surely is going to benefit from the US debt ceiling deal, as the market will return its focus to actual individual performance. Apple is trading very close to $400 and approaching its all time high of $404.50. The tech giant, who had its cash holdings compared with the U.S. government, was still seeing participants willing to buy on weakness as analysts expect outperformance from Apple in the second half amid the launch of the new iPhone sometime in September. Numerous brokerage houses bumped last week their target prices above $500 per share.
According to a media report, the Apple Inc. (NASDAQ:AAPL) boss has plans to build the world’s best office in Cupertino.
The report was said to be an exert from one of his presentations. Apple Inc. (NASDAQ:AAPL) shares were at 394.57 at the end of the last day’s trading. There’s been a 11.5% movement in the stock price over the past 3 months.
According to a media report, the Apple Inc. (NASDAQ:AAPL) boss has plans to build the world’s best office in Cupertino.
Intraday Chart august 1 2011
The report was said to be an exert from one of his presentations. Apple Inc. (NASDAQ:AAPL) shares were at 394.57 at the end of the last day’s trading. There’s been a 11.5% movement in the stock price over the past 3 months.
Sirius XM Radio Stock prices and Intraday Chart August 1 2011
Sirius XM Radio Stock prices and Intraday Chart August 1 2011 ; US stock futures were indicating a significant higher open early Monday morning, as investors cheer the deal reached by President Obama and congressional leaders that will allow the raising of the debt ceiling, eliminating the possibility of the US Government defaulting on its debt.
Last week, stocks posted their worst weekly performance in more than a year, as investors worried that Washington wouldn't reach an agreement before the deadline of Aug. 2.
Sirius XM Radio (NASDAQ:SIRI) is trading higher in pre-market action following the overall market strength as investors await its corporate results. Sirius XM is slated to report its corporate earnings this Tuesday, with Wall Street analyst expecting a profit of one penny per share on $752 million revenue. Investors will once again focus on Sirius XM subscriber growth and on the release of Sirius XM 2.0, which investors are hoping will be a game changer.
Sirius expects to generate approximately $3 billion in revenue and $715 million in adjusted EBITDA for fiscal year 2011, while projecting free cash flow to now approach $350 million. From an operations standpoint, it is also projecting to add another 1.4 million net subscribers by the end of the year and to experience full-year conversion and self-paid churn rates, similar to that of 2010.
Last week, stocks posted their worst weekly performance in more than a year, as investors worried that Washington wouldn't reach an agreement before the deadline of Aug. 2.
Sirius XM Radio (NASDAQ:SIRI) is trading higher in pre-market action following the overall market strength as investors await its corporate results. Sirius XM is slated to report its corporate earnings this Tuesday, with Wall Street analyst expecting a profit of one penny per share on $752 million revenue. Investors will once again focus on Sirius XM subscriber growth and on the release of Sirius XM 2.0, which investors are hoping will be a game changer.
Sirius XM Radio Intraday stock chart
Sirius expects to generate approximately $3 billion in revenue and $715 million in adjusted EBITDA for fiscal year 2011, while projecting free cash flow to now approach $350 million. From an operations standpoint, it is also projecting to add another 1.4 million net subscribers by the end of the year and to experience full-year conversion and self-paid churn rates, similar to that of 2010.
Bank of America (NYSE:BAC) Stock Prices outlook august 1 2011
Bank of America (NYSE:BAC) Stock Prices outlook august 1 2011 : Bank of America (NYSE:BAC) is one of the leaders this morning, with its stock trading higher 4% on the US debt ceiling resolution.
Bank of America stock is now trading above the $10 mark once again and is just shy of its 20 day moving average that has been acting as resistance for the past few weeks. Bank of America failed to impress on its corporate results, as it continues to show issues given the mortgage mess.
Current price levels make Bank of America trade at just 6.5 times the consensus 2012 earnings estimates, with a big majority of analysts having price targets of $14 for the stock.
Bank of America stock is now trading above the $10 mark once again and is just shy of its 20 day moving average that has been acting as resistance for the past few weeks. Bank of America failed to impress on its corporate results, as it continues to show issues given the mortgage mess.
Current price levels make Bank of America trade at just 6.5 times the consensus 2012 earnings estimates, with a big majority of analysts having price targets of $14 for the stock.
U.S. Equity Movers august 1st 2011, Health Care REIT, Paetec, Sohu.com, Talbots
U.S. Equity Movers august 1st 2011, Health Care REIT, Paetec, Sohu.com, Talbots : Shares of the following companies are having unusual moves in U.S. trading. Stock symbols are in parentheses and prices are as of 10 a.m. in New York. Health-care stocks declined after Medicare, the U.S. health plan for the elderly and disabled, announced an 11.1 percent rate cut for next year.
Health Care REIT Inc. (HCN US) fell the most in the Standard & Poor's 500 Index, sliding 5.7 percent to $49.75. HCP Inc. (HCP US) retreated 4.4 percent to $35.10.
Kindred Healthcare Inc. (KND US) plunged 25 percent to $14.09 and Sun Healthcare Group Inc. (SUNH US) tumbled 57 percent to $3.03. Sabra Health Care REIT Inc. (SBRA US) declined 25 percent to $10.88. Skilled Healthcare Group Inc. (SKH US) slumped 39 percent to $5.35. Ensign Group Inc. (ENSG US) slid 20 percent to $22.69. National Healthcare Corp. (NHC US) fell 13 percent to $41.26.
Paetec Holding Corp. (PAET US) rose the most in the Russell 2000 Index, rallying 18 percent to $5.20. The provider of telephone and Internet access to businesses agreed to be bought by Windstream Corp. (WIN US) for about $891 million.
Sohu.com Inc. (SOHU US) fell 6.5 percent to $84.28 and slipped as much as 8.9 percent, the most intraday since May 3. The operator of China's fifth most-visited website reported second-quarter profit rose 37 percent, missing analysts' estimates, after the company boosted spending to offer online games and video services.
Standard Pacific Corp. (SPF US) increased 3.9 percent to $2.97 after climbing as much as 11 percent, the most intraday since July 2010. The Irvine, California-based homebuilder was upgraded to "buy" from "neutral" by UBS AG, which said the strategy of buying land at attractive prices regardless of the stage of development will boost the company's performance.
Talbots Inc. (TLB US) jumped 7.2 percent to $3.71 and increased to $3.88 earlier, the highest intraday price since June 6. Private equity firm Sycamore Partners L.P. reported a 9.9 percent stake in the women's clothing retailer, making it the company's second-largest shareholder, according to Bloomberg data.
Health Care REIT Inc. (HCN US) fell the most in the Standard & Poor's 500 Index, sliding 5.7 percent to $49.75. HCP Inc. (HCP US) retreated 4.4 percent to $35.10.
Kindred Healthcare Inc. (KND US) plunged 25 percent to $14.09 and Sun Healthcare Group Inc. (SUNH US) tumbled 57 percent to $3.03. Sabra Health Care REIT Inc. (SBRA US) declined 25 percent to $10.88. Skilled Healthcare Group Inc. (SKH US) slumped 39 percent to $5.35. Ensign Group Inc. (ENSG US) slid 20 percent to $22.69. National Healthcare Corp. (NHC US) fell 13 percent to $41.26.
Paetec Holding Corp. (PAET US) rose the most in the Russell 2000 Index, rallying 18 percent to $5.20. The provider of telephone and Internet access to businesses agreed to be bought by Windstream Corp. (WIN US) for about $891 million.
Sohu.com Inc. (SOHU US) fell 6.5 percent to $84.28 and slipped as much as 8.9 percent, the most intraday since May 3. The operator of China's fifth most-visited website reported second-quarter profit rose 37 percent, missing analysts' estimates, after the company boosted spending to offer online games and video services.
Standard Pacific Corp. (SPF US) increased 3.9 percent to $2.97 after climbing as much as 11 percent, the most intraday since July 2010. The Irvine, California-based homebuilder was upgraded to "buy" from "neutral" by UBS AG, which said the strategy of buying land at attractive prices regardless of the stage of development will boost the company's performance.
Talbots Inc. (TLB US) jumped 7.2 percent to $3.71 and increased to $3.88 earlier, the highest intraday price since June 6. Private equity firm Sycamore Partners L.P. reported a 9.9 percent stake in the women's clothing retailer, making it the company's second-largest shareholder, according to Bloomberg data.
Sunday, July 31, 2011
Axa insurance rank 14 on fortune 500 Magazine, best company 2011
Axa insurance rank 14 on fortune 500 Magazine, best company 2011 : The French insurance company wants to focus on growth outside of the European market. The company plans to increase earnings in emerging markets by 250% by 2015. Specifically, AXA wants to grow its presence in Asia, Latin America and the Mediterranean region.
Rank: 14 (Previous rank: 9)
CEO: Henri de Castries
Employees: 102,957
Address: 25 Ave. Matignon
Paris 75008
Country: France
Website: www.axa.com
The strategy is costing AXA in the short term -- net income decreased by 26% to roughly $4 billion, largely due to the sale of its UK Life operations. Aside from that sale, however, net income at AXA increased by about $6.3 billion in 2010.
Rank: 14 (Previous rank: 9)
CEO: Henri de Castries
Employees: 102,957
Address: 25 Ave. Matignon
Paris 75008
Country: France
Website: www.axa.com
The strategy is costing AXA in the short term -- net income decreased by 26% to roughly $4 billion, largely due to the sale of its UK Life operations. Aside from that sale, however, net income at AXA increased by about $6.3 billion in 2010.
Top fortune 500 Magazine, Best company 2011
Top fortune 500 Magazine, Best company 2011 : Fortune Magazine publishes its annual list of the world’s biggest companies. Top of the list this year is Wal-Mart Stores, Royal Dutch Shell, Exxon Mobil, BP, Toyota Motor, Japan Post Holdings, Sinopec, State Grid, AXA and China National Petroleum.
Oil companies are the biggest money makers on this year’s Global 500, including BP, Microsoft and Wal-Mart. Australia’s top companies are BHP Billiton, Westfarmers, Woolworths, Commonwealth Bank of Australia, National Australian Bank, Westpac Banking, ANZ Bank and Telstra. China’s leading companies are Sinopec, State Grid and China National Petroleum.
Top 20 Companies fortune 500 Magazine
1. Wal-Mart Stores
Rank: 1 (Previous rank: 1)
Revenues ($ millions): 421,849.0
CEO: Michael T. Duke
Wal-Mart rules the Fortune 500 for the second year in a row — and the eighth time this decade — beating Exxon Mobil decisively in the battle to be crowned America's largest company. But things haven't been easy: Sales at its U.S. stores have dropped for seven straight quarters, despite gains in worldwide revenues and profits.
To fight back, CEO Michael Duke is restocking shelves with lower-priced products dropped by his predecessor, Lee Scott. He's also jumping on the anti-obesity bandwagon: Thousands of packaged food items are being reconfigured to cut their salt and sugar content.
2. Exxon Mobil
Rank: 2 (Previous rank: 2)
Revenues ($ millions): 354,674.0
CEO: Rex W. Tillerson
The oil giant may not be the biggest company in the U.S., but it's by far the most profitable: Driven by higher prices for crude — as well as big gains in its natural gas and chemicals businesses — profits at Exxon Mobil topped $30 billion, a whopping 58% jump.
With its eye on growth, the company recently launched a massive joint venture in Qatar and an offshore well in eastern Russia. It also is making a big push into alternative energies, investing in biofuels and expanding operations designed to cut greenhouse gases.
3. Chevron
Rank: 3 (Previous rank: 3)
Revenues ($ millions): 196,337.0
CEO: John S. Watson
Chevron's got some headaches to deal with: In Nigeria it faces ongoing hostilities from local thugs, and in Ecuador, it's fighting claims that its Texaco unit engaged in toxic-waste dumping.
So why not engage in a little retail therapy? In February, Chevron wrapped up its $3.2 billion acquisition of Pennsylvania's Atlas Energy, adding to its growing portfolio of natural gas operations. It also bought 200,000 acres of the Duvernay shale gas formation in Alberta, Canada. Expect the buying to continue: Chevron says it will boost capital spending 20% this year to $26 billion.
4. ConocoPhillips
Rank: 4 (Previous rank: 6)
Revenues ($ millions): 184,966.0
CEO: James J. Mulva
Conoco stock has been on a tear this past year, rising more than 40%, although it's still off sharply from its 2008 high. What's cheering investors? CEO James Mulva's plan to shed assets — more than $15 billion worth in the past 18 months — and reduce long-term debt.
The company also plans to drill 150 new oil wells this year in its Eagle Ford project in southern Texas and anticipates hitting peak production of some 65,000 barrels per day in 2013. Mulva's expanding shale operations, too, having added about 90,000 acres in North America last year.
5. Fannie Mae
Rank: 5 (Previous rank: 81)
Revenues ($ millions): 153,825.0
CEO: Michael J. Williams
Sure, it's still living off a lifeline from the federal government. But that hasn't stopped Fannie from leaping into the top 5 this year, up from no. 81. It's mostly new accounting rules, though, that have pushed Fannie so high on the 500.
Indeed, Fannie's troubles are far from over. In April, the SEC began investigating statements then-CEO Daniel Mudd made in 2007 to Congress that may have misrepresented Fannie's health. And FNMA stock has done so poorly that the New York Stock Exchange delisted it last June.
6. General Electric
Rank: 6 (Previous rank: 4)
Revenues ($ millions): 151,628.0
CEO: Jeffrey R. Immelt
Jeffrey Immelt's decade-long tenure as CEO has been one of "decline, mistakes, and wealth destruction," Fortune concluded recently. And the nuclear disaster in Japan, involving GE-designed reactors, hasn't helped the conglomerate's reputation.
But there's still cause for optimism. GE's order backlog for core industrial products like turbines and locomotive engines stands at $175 billion, and could grow if plans for a $53 billion high-speed rail project ever win Congressional approval.
Meanwhile, Immelt has been allocating some $20 billion of capital annually into energy-oriented businesses. No wonder shares have nearly tripled since the depths of the financial crisis.
7. Berkshire Hathaway
Rank: 7 (Previous rank: 11)
Revenues ($ millions): 136,185.0
CEO: Warren E. Buffett
Just about every company in Warren Buffett's fold is firing on all cylinders and cash-flush Berkshire will likely make some big acquisitions in the future. But the Oracle of Omaha faces a few uncertainties ahead.
For one: It's still unclear if there will be an investigation into David Sokol, the former Buffett heir apparent who quit in March. His resignation followed revelations that Sokol bought shares of Lubrizol shortly before Berkshire's $9 billion bid for the company.
Also hazy: just how much exposure Berkshire's reinsurance operations have to the Fukushima nuclear disaster in Japan. Luckily, Buffett keeps $20 billion in Berkshire's sock drawer to cover such unforeseen emergencies.
8. General Motors
Rank: 8 (Previous rank: 15)
Revenues ($ millions): 135,592.0
CEO: Daniel F. Akerson
Bailed out and buffed up, GM emerged from bankruptcy with a $20 billion public offering in November, the largest IPO in U.S. history. Early results look good: The automaker posted its first annual profit in six years.
Daniel Akerson, GM's fourth CEO since the government's $50 billion rescue three years ago, plans to focus on four major brands — Chevrolet, Cadillac, Buick, and GMC. The goal is to cut inventory, close plants and dealerships, and otherwise improve efficiency. One sign of success: Its latest model, the Chevy Volt plug-in hybrid, was named Motor Trend's Car of the Year.
9. Bank of America Corp.
Rank: 9 (Previous rank: 5)
Revenues ($ millions): 134,194.0
CEO: Brian T. Moynihan
CEO Brian Moynihan may have hoped that predicting $45 billion to $50 billion in earnings down the road would mollify investors distressed at the bank's $5.8 billion in losses over the last two years.
But some critics think the embattled bank chief is being overly optimistic. After all, Bank of America still needs to resolve continuing issues from the mortgage mess and a number of embarrassing lawsuits over the bank's foreclosure practices. And shares are off 78% from their pre-meltdown high — no wonder the Fed recently nixed the bank's plans to restore a dividend program.
10. Ford Motor
Rank: 10 (Previous rank: 8)
Revenues ($ millions): 128,954.0
CEO: Alan R. Mulally
Riding on strong sales of the Fiesta and a redesigned Taurus, Ford turned in its best annual profit since 1999 last year.
In the U.S., CEO Alan Mulally shuttered Ford's Mercury division, completed the sale of Volvo, divested its Mazda shares, and saw sales jump 17%.
Next up: a big boost to Lincoln — Ford's last premium brand — as seven new models are planned in the next four years. Outside the U.S., the automaker delivered robust sales in India, Russia, and Eastern Europe. After trading as low as $1.43 a year ago, Ford shares are now around $15.
11. Hewlett-Packard
Rank: 11 (Previous rank: 10)
Revenues ($ millions): 126,033.0
CEO: Leo Apotheker
Five months after taking over the top spot from ousted chief Mark Hurd, new CEO Leo Apotheker spelled out his plan to transform HP. The goal: Dominate cloud computing, encouraging consumers and businesses to use HP hardware to connect with public and private networks.
To do so, the company will draw heavily on recent acquisitions, including last year's $2.7 billion purchase of 3Com and its $1.2 billion buyout of Palm. Already the world's biggest PC manufacturer, HP secured a partnership with IBM to become the world's biggest seller of servers.
12. AT&T
Rank: 12 (Previous rank: 7)
Revenues ($ millions): 124,629.0
CEO: Randall L. Stephenson
AT&T has taken a lot of heat about the quality of its wireless network. So much so, perhaps, that it recently agreed to pay $39 billion for T-Mobile USA — a smaller rival that once ran ads ridiculing AT&T's service.
The combined entity — which has yet to get past Washington's antitrust watchdogs — would allow AT&T to spread the cost of running a national network over an additional 34 million customers.
Best of all: Adding T-Mobile's spectrum and cell towers to the mix should do much to alleviate the massive congestion that has taxed AT&T's existing infrastructure for years.
13. J.P. Morgan Chase & Co.
Rank: 13 (Previous rank: 9)
Revenues ($ millions): 115,475.0
CEO: James Dimon
Of the big U.S. banks, Jamie Dimon's is the only one that didn't turn in a losing quarter during the financial crisis. Recovery is bringing stronger results: J.P. Morgan Chase posted record profits in 2010.
Chase is working on consolidating its lead this year. For the first time, it's poised to surpass both Goldman Sachs and Morgan Stanley in the lucrative M&A business. And in the biggest sign yet that credit markets have thawed, J.P. Morgan extended a one-year, $20 billion bridge loan to AT&T for its $39 billion purchase of T-Mobile, the bank's biggest single loan commitment ever.
14. Citigroup
Rank: 14 (Previous rank: 12)
Revenues ($ millions): 111,055.0
CEO: Vikram S. Pandit
Things are looking up for Citigroup. For the first time since 2006, the bank logged four consecutive quarters without a loss. Meanwhile a newly restored dividend — albeit a measly one penny per share — and a ten-for-one reverse stock split could drag its shares out of the single digits.
But investors still have a lot to be wary about. The company continues to unload assets — some $108 billion worth last year alone. Add the ongoing ramifications of financial reform and the credit card act, and Citi's top-line growth looks pretty hamstrung down the road.
15. McKesson
Rank: 15 (Previous rank: 14)
Revenues ($ millions): 108,702.0
CEO: John H. Hammergren
The nation's largest health-care provider greatly expanded its already extensive cancer treatment business when it bought U.S. Oncology for $2.2 billion last December.
Still, distribution remains McKesson's backbone: A full one-third of all medicines used in the U.S. run through its pipeline.
The company also is the dominant player in health care information systems. More than 70% of the nation's big market hospitals use its technology to digitize prescriptions and patient medical records. A class-action lawsuit over wholesale drug prices has cut into profits; still, its stock is up 23% over the past year.
16. Verizon Communications
Rank: 16 (Previous rank: 13)
Revenues ($ millions): 106,565.0
CEO: Ivan G. Seidenberg
To hear CEO-in-waiting Lowell McAdam tell it, Verizon is about to "kick into a higher gear." Why? Outgoing chief Ivan Seidenberg has invested heavily the past few years in next-generation broadband technologies such as FiOS, a high-speed fiber optic service, and LTE, a 4G wireless network.
Combined with its growing video and cloud computing services, which should also get a boost from Verizon's purchase of Terremark in January, these businesses now account for three-quarters of sales. Then of course there's the iPhone, which Verizon began selling earlier this year. No wonder the communications giant shrugged off the planned union between AT&T and T-Mobile.
17. American International Group
Rank: 17 (Previous rank: 16)
Revenues ($ millions): 104,417.0
CEO: Robert H. Benmosche
Sure, AIG turned in the worst underwriting results among the nation's big insurers — paying out nearly 30% more on claims and expenses than it received in premiums. Still, AIG swung to a tidy profit last year after a disastrous 2009.
For that bit of financial wizardry, credit outspoken CEO Robert Benmosche, who's defying all odds turning around the beleaguered insurance giant. The company has repaid billions to the government — including its entire obligation to the Fed — and regained access to credit and debt markets. A recent move: unloading two insurance units for $37 billion.
18. International Business Machines
Rank: 18 (Previous rank: 20)
Revenues ($ millions): 99,870.0
CEO: Samuel J. Palmisano
When Big Blue celebrates its centennial later this year, it will do so in style. Sales reached almost $100 billion in 2010 and profits, which have quadrupled during CEO Sam Palmisano's nine-year reign, hit a record.
The secret: a heavy focus on innovation. IBM spent $24 billion on R&D last year and filed over 18,000 patents — more than any other company in the world. Most firms pulled back during the recession, while IBM invested big in projects like artificial intelligence (who didn't watch Watson on Jeopardy?) and Smart Planet, its plan to use networking computer technology to ease traffic congestion and overtaxed power grids.
19. Cardinal Health
Rank: 19 (Previous rank: 17)
Revenues ($ millions): 98,601.9
CEO: George S. Barrett
In a business where big players claw away at each other's ultra-slim operating margins, drug distributor Cardinal Health sharpened its nails with two strategic acquisitions last year.
In China, one of the world's fastest growing health care markets, Cardinal paid $470 million for Zuellig Pharma China, the country's largest pharmaceutical importer. In the U.S., it bought Kinray from billionaire Stewart Rahr for $1.3 billion, which will add some 2,000 higher-margin independent pharmacies to Cardinal's distribution channel. A new, three-year $750 million stock repurchase plan should also give a boost to the company's shares.
20. Freddie Mac
Rank: 20 (Previous rank: 54)
Revenues ($ millions): 98,368.0
CEO: Charles E. Haldeman Jr.
The smaller of the two mortgage giants, Freddie Mac has stayed on its feet because of the roughly $64 billion in government bailout money it's received. Along with Fannie Mae, Freddie Mac still guarantees or owns half of all U.S. residential mortgages, and the government support has allowed both companies to more or less freeze time on their balance sheets for years now.
The Obama administration has outlined plans to phase out government support for Freddie and Fannie, but there's a long road ahead: By the administration's estimate, that process could take up to seven years.
Oil companies are the biggest money makers on this year’s Global 500, including BP, Microsoft and Wal-Mart. Australia’s top companies are BHP Billiton, Westfarmers, Woolworths, Commonwealth Bank of Australia, National Australian Bank, Westpac Banking, ANZ Bank and Telstra. China’s leading companies are Sinopec, State Grid and China National Petroleum.
Top 20 Companies fortune 500 Magazine
1. Wal-Mart Stores
Rank: 1 (Previous rank: 1)
Revenues ($ millions): 421,849.0
CEO: Michael T. Duke
Wal-Mart rules the Fortune 500 for the second year in a row — and the eighth time this decade — beating Exxon Mobil decisively in the battle to be crowned America's largest company. But things haven't been easy: Sales at its U.S. stores have dropped for seven straight quarters, despite gains in worldwide revenues and profits.
To fight back, CEO Michael Duke is restocking shelves with lower-priced products dropped by his predecessor, Lee Scott. He's also jumping on the anti-obesity bandwagon: Thousands of packaged food items are being reconfigured to cut their salt and sugar content.
2. Exxon Mobil
Rank: 2 (Previous rank: 2)
Revenues ($ millions): 354,674.0
CEO: Rex W. Tillerson
The oil giant may not be the biggest company in the U.S., but it's by far the most profitable: Driven by higher prices for crude — as well as big gains in its natural gas and chemicals businesses — profits at Exxon Mobil topped $30 billion, a whopping 58% jump.
With its eye on growth, the company recently launched a massive joint venture in Qatar and an offshore well in eastern Russia. It also is making a big push into alternative energies, investing in biofuels and expanding operations designed to cut greenhouse gases.
3. Chevron
Rank: 3 (Previous rank: 3)
Revenues ($ millions): 196,337.0
CEO: John S. Watson
Chevron's got some headaches to deal with: In Nigeria it faces ongoing hostilities from local thugs, and in Ecuador, it's fighting claims that its Texaco unit engaged in toxic-waste dumping.
So why not engage in a little retail therapy? In February, Chevron wrapped up its $3.2 billion acquisition of Pennsylvania's Atlas Energy, adding to its growing portfolio of natural gas operations. It also bought 200,000 acres of the Duvernay shale gas formation in Alberta, Canada. Expect the buying to continue: Chevron says it will boost capital spending 20% this year to $26 billion.
4. ConocoPhillips
Rank: 4 (Previous rank: 6)
Revenues ($ millions): 184,966.0
CEO: James J. Mulva
Conoco stock has been on a tear this past year, rising more than 40%, although it's still off sharply from its 2008 high. What's cheering investors? CEO James Mulva's plan to shed assets — more than $15 billion worth in the past 18 months — and reduce long-term debt.
The company also plans to drill 150 new oil wells this year in its Eagle Ford project in southern Texas and anticipates hitting peak production of some 65,000 barrels per day in 2013. Mulva's expanding shale operations, too, having added about 90,000 acres in North America last year.
5. Fannie Mae
Rank: 5 (Previous rank: 81)
Revenues ($ millions): 153,825.0
CEO: Michael J. Williams
Sure, it's still living off a lifeline from the federal government. But that hasn't stopped Fannie from leaping into the top 5 this year, up from no. 81. It's mostly new accounting rules, though, that have pushed Fannie so high on the 500.
Indeed, Fannie's troubles are far from over. In April, the SEC began investigating statements then-CEO Daniel Mudd made in 2007 to Congress that may have misrepresented Fannie's health. And FNMA stock has done so poorly that the New York Stock Exchange delisted it last June.
6. General Electric
Rank: 6 (Previous rank: 4)
Revenues ($ millions): 151,628.0
CEO: Jeffrey R. Immelt
Jeffrey Immelt's decade-long tenure as CEO has been one of "decline, mistakes, and wealth destruction," Fortune concluded recently. And the nuclear disaster in Japan, involving GE-designed reactors, hasn't helped the conglomerate's reputation.
But there's still cause for optimism. GE's order backlog for core industrial products like turbines and locomotive engines stands at $175 billion, and could grow if plans for a $53 billion high-speed rail project ever win Congressional approval.
Meanwhile, Immelt has been allocating some $20 billion of capital annually into energy-oriented businesses. No wonder shares have nearly tripled since the depths of the financial crisis.
7. Berkshire Hathaway
Rank: 7 (Previous rank: 11)
Revenues ($ millions): 136,185.0
CEO: Warren E. Buffett
Just about every company in Warren Buffett's fold is firing on all cylinders and cash-flush Berkshire will likely make some big acquisitions in the future. But the Oracle of Omaha faces a few uncertainties ahead.
For one: It's still unclear if there will be an investigation into David Sokol, the former Buffett heir apparent who quit in March. His resignation followed revelations that Sokol bought shares of Lubrizol shortly before Berkshire's $9 billion bid for the company.
Also hazy: just how much exposure Berkshire's reinsurance operations have to the Fukushima nuclear disaster in Japan. Luckily, Buffett keeps $20 billion in Berkshire's sock drawer to cover such unforeseen emergencies.
8. General Motors
Rank: 8 (Previous rank: 15)
Revenues ($ millions): 135,592.0
CEO: Daniel F. Akerson
Bailed out and buffed up, GM emerged from bankruptcy with a $20 billion public offering in November, the largest IPO in U.S. history. Early results look good: The automaker posted its first annual profit in six years.
Daniel Akerson, GM's fourth CEO since the government's $50 billion rescue three years ago, plans to focus on four major brands — Chevrolet, Cadillac, Buick, and GMC. The goal is to cut inventory, close plants and dealerships, and otherwise improve efficiency. One sign of success: Its latest model, the Chevy Volt plug-in hybrid, was named Motor Trend's Car of the Year.
9. Bank of America Corp.
Rank: 9 (Previous rank: 5)
Revenues ($ millions): 134,194.0
CEO: Brian T. Moynihan
CEO Brian Moynihan may have hoped that predicting $45 billion to $50 billion in earnings down the road would mollify investors distressed at the bank's $5.8 billion in losses over the last two years.
But some critics think the embattled bank chief is being overly optimistic. After all, Bank of America still needs to resolve continuing issues from the mortgage mess and a number of embarrassing lawsuits over the bank's foreclosure practices. And shares are off 78% from their pre-meltdown high — no wonder the Fed recently nixed the bank's plans to restore a dividend program.
10. Ford Motor
Rank: 10 (Previous rank: 8)
Revenues ($ millions): 128,954.0
CEO: Alan R. Mulally
Riding on strong sales of the Fiesta and a redesigned Taurus, Ford turned in its best annual profit since 1999 last year.
In the U.S., CEO Alan Mulally shuttered Ford's Mercury division, completed the sale of Volvo, divested its Mazda shares, and saw sales jump 17%.
Next up: a big boost to Lincoln — Ford's last premium brand — as seven new models are planned in the next four years. Outside the U.S., the automaker delivered robust sales in India, Russia, and Eastern Europe. After trading as low as $1.43 a year ago, Ford shares are now around $15.
11. Hewlett-Packard
Rank: 11 (Previous rank: 10)
Revenues ($ millions): 126,033.0
CEO: Leo Apotheker
Five months after taking over the top spot from ousted chief Mark Hurd, new CEO Leo Apotheker spelled out his plan to transform HP. The goal: Dominate cloud computing, encouraging consumers and businesses to use HP hardware to connect with public and private networks.
To do so, the company will draw heavily on recent acquisitions, including last year's $2.7 billion purchase of 3Com and its $1.2 billion buyout of Palm. Already the world's biggest PC manufacturer, HP secured a partnership with IBM to become the world's biggest seller of servers.
12. AT&T
Rank: 12 (Previous rank: 7)
Revenues ($ millions): 124,629.0
CEO: Randall L. Stephenson
AT&T has taken a lot of heat about the quality of its wireless network. So much so, perhaps, that it recently agreed to pay $39 billion for T-Mobile USA — a smaller rival that once ran ads ridiculing AT&T's service.
The combined entity — which has yet to get past Washington's antitrust watchdogs — would allow AT&T to spread the cost of running a national network over an additional 34 million customers.
Best of all: Adding T-Mobile's spectrum and cell towers to the mix should do much to alleviate the massive congestion that has taxed AT&T's existing infrastructure for years.
13. J.P. Morgan Chase & Co.
Rank: 13 (Previous rank: 9)
Revenues ($ millions): 115,475.0
CEO: James Dimon
Of the big U.S. banks, Jamie Dimon's is the only one that didn't turn in a losing quarter during the financial crisis. Recovery is bringing stronger results: J.P. Morgan Chase posted record profits in 2010.
Chase is working on consolidating its lead this year. For the first time, it's poised to surpass both Goldman Sachs and Morgan Stanley in the lucrative M&A business. And in the biggest sign yet that credit markets have thawed, J.P. Morgan extended a one-year, $20 billion bridge loan to AT&T for its $39 billion purchase of T-Mobile, the bank's biggest single loan commitment ever.
14. Citigroup
Rank: 14 (Previous rank: 12)
Revenues ($ millions): 111,055.0
CEO: Vikram S. Pandit
Things are looking up for Citigroup. For the first time since 2006, the bank logged four consecutive quarters without a loss. Meanwhile a newly restored dividend — albeit a measly one penny per share — and a ten-for-one reverse stock split could drag its shares out of the single digits.
But investors still have a lot to be wary about. The company continues to unload assets — some $108 billion worth last year alone. Add the ongoing ramifications of financial reform and the credit card act, and Citi's top-line growth looks pretty hamstrung down the road.
15. McKesson
Rank: 15 (Previous rank: 14)
Revenues ($ millions): 108,702.0
CEO: John H. Hammergren
The nation's largest health-care provider greatly expanded its already extensive cancer treatment business when it bought U.S. Oncology for $2.2 billion last December.
Still, distribution remains McKesson's backbone: A full one-third of all medicines used in the U.S. run through its pipeline.
The company also is the dominant player in health care information systems. More than 70% of the nation's big market hospitals use its technology to digitize prescriptions and patient medical records. A class-action lawsuit over wholesale drug prices has cut into profits; still, its stock is up 23% over the past year.
16. Verizon Communications
Rank: 16 (Previous rank: 13)
Revenues ($ millions): 106,565.0
CEO: Ivan G. Seidenberg
To hear CEO-in-waiting Lowell McAdam tell it, Verizon is about to "kick into a higher gear." Why? Outgoing chief Ivan Seidenberg has invested heavily the past few years in next-generation broadband technologies such as FiOS, a high-speed fiber optic service, and LTE, a 4G wireless network.
Combined with its growing video and cloud computing services, which should also get a boost from Verizon's purchase of Terremark in January, these businesses now account for three-quarters of sales. Then of course there's the iPhone, which Verizon began selling earlier this year. No wonder the communications giant shrugged off the planned union between AT&T and T-Mobile.
17. American International Group
Rank: 17 (Previous rank: 16)
Revenues ($ millions): 104,417.0
CEO: Robert H. Benmosche
Sure, AIG turned in the worst underwriting results among the nation's big insurers — paying out nearly 30% more on claims and expenses than it received in premiums. Still, AIG swung to a tidy profit last year after a disastrous 2009.
For that bit of financial wizardry, credit outspoken CEO Robert Benmosche, who's defying all odds turning around the beleaguered insurance giant. The company has repaid billions to the government — including its entire obligation to the Fed — and regained access to credit and debt markets. A recent move: unloading two insurance units for $37 billion.
18. International Business Machines
Rank: 18 (Previous rank: 20)
Revenues ($ millions): 99,870.0
CEO: Samuel J. Palmisano
When Big Blue celebrates its centennial later this year, it will do so in style. Sales reached almost $100 billion in 2010 and profits, which have quadrupled during CEO Sam Palmisano's nine-year reign, hit a record.
The secret: a heavy focus on innovation. IBM spent $24 billion on R&D last year and filed over 18,000 patents — more than any other company in the world. Most firms pulled back during the recession, while IBM invested big in projects like artificial intelligence (who didn't watch Watson on Jeopardy?) and Smart Planet, its plan to use networking computer technology to ease traffic congestion and overtaxed power grids.
19. Cardinal Health
Rank: 19 (Previous rank: 17)
Revenues ($ millions): 98,601.9
CEO: George S. Barrett
In a business where big players claw away at each other's ultra-slim operating margins, drug distributor Cardinal Health sharpened its nails with two strategic acquisitions last year.
In China, one of the world's fastest growing health care markets, Cardinal paid $470 million for Zuellig Pharma China, the country's largest pharmaceutical importer. In the U.S., it bought Kinray from billionaire Stewart Rahr for $1.3 billion, which will add some 2,000 higher-margin independent pharmacies to Cardinal's distribution channel. A new, three-year $750 million stock repurchase plan should also give a boost to the company's shares.
20. Freddie Mac
Rank: 20 (Previous rank: 54)
Revenues ($ millions): 98,368.0
CEO: Charles E. Haldeman Jr.
The smaller of the two mortgage giants, Freddie Mac has stayed on its feet because of the roughly $64 billion in government bailout money it's received. Along with Fannie Mae, Freddie Mac still guarantees or owns half of all U.S. residential mortgages, and the government support has allowed both companies to more or less freeze time on their balance sheets for years now.
The Obama administration has outlined plans to phase out government support for Freddie and Fannie, but there's a long road ahead: By the administration's estimate, that process could take up to seven years.
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