Not every analyst was swayed by the easy cheer so prevalent on the trading floors in recent days.The news out of Europe clearly is driving the market,said Jeremy Zirin,Chief Equity Strategist at UBS Financial Services.I think the market will continue to be driven by the news flow out of Europe.We're actually not that inexpensive.The rally that we've seen has really evaporated some of that cheapness.
I expect S&P 1100-1250 range-bound conditions.I think the risk-reward after the rally is to the downside.You want to have a more cautious disposition:staples,utilities,telcos,and tech with its high cash balances and emerging markets exposure.
The catalyst for a breakout would have to be a resolution in Europe and a resumption of strong U.S. growth.It seems unlikely given the uncertainty of our own fiscal policy-let alone Europe.The outlook is increasingly uncertain.Some multinationals are starting to see one of the problems is business uncertainty and market uncertainty.It's very difficult to make multi-year investments in capital goods or in labor when you can't be sure of the landscape.
On the surface,this earnings season looks similar to the past 6-8 quarters.What's really different is,forward-looking estimates are being cut at a dizzying rate.Below the surface,it's deteriorating,Mr.Zirin cogently observed.
Monday, October 31, 2011
Sunday, October 30, 2011
Honda Troubled By Thai Flood
Honda Motor shares fell on Monday as the company announced its Thailand plant may be closed for six months.Honda needs to replace equipment that was damaged by the recent flooding in the outskirts of Bangkok.The plant produces the Civic and Accord models.
The center of Bangkok is generally dry,protected by a wall of hundreds of thousands of sandbags that guide the waters to the Thai delta.The wall has prompted bitter criticism by residents of the northern reaches of the city,whose homes have been flooded,while those living just inside the wall are dry.Prime Minister Yingluck Shinawatra pointed out that they had no choice but to protect the city center.Thailand's international image would suffer if the capital city were allowed to be flooded.She called for patience for 2-3 more days.These are very critical days in the disaster,the Prime Minister added.
About 400 people have died as a result of the flooding.The total financial losses so far are about 30 billion dollars.The Bank of Thailand is lowering its Gross Domestic Product growth estimate for the country from 4.2 to 2.6% because of the flooding.Industrial and agricultural exports will take a hit.
Toyota Motor has had to close three plants in Eastern Thailand because of a disruption of parts delivery caused by the flood.
In Bangkok,it was 84F on Monday under clear skies.The wind was NE at 7 mph,and the humidity was 62%.Good weather for the next several days should help with the flooding situation.
Honda Motor Company,Ltd.(HMC),Toyota Motor Corporation(TM)
The center of Bangkok is generally dry,protected by a wall of hundreds of thousands of sandbags that guide the waters to the Thai delta.The wall has prompted bitter criticism by residents of the northern reaches of the city,whose homes have been flooded,while those living just inside the wall are dry.Prime Minister Yingluck Shinawatra pointed out that they had no choice but to protect the city center.Thailand's international image would suffer if the capital city were allowed to be flooded.She called for patience for 2-3 more days.These are very critical days in the disaster,the Prime Minister added.
About 400 people have died as a result of the flooding.The total financial losses so far are about 30 billion dollars.The Bank of Thailand is lowering its Gross Domestic Product growth estimate for the country from 4.2 to 2.6% because of the flooding.Industrial and agricultural exports will take a hit.
Toyota Motor has had to close three plants in Eastern Thailand because of a disruption of parts delivery caused by the flood.
In Bangkok,it was 84F on Monday under clear skies.The wind was NE at 7 mph,and the humidity was 62%.Good weather for the next several days should help with the flooding situation.
Honda Motor Company,Ltd.(HMC),Toyota Motor Corporation(TM)
Thursday, October 27, 2011
Health Care Struggle Over New Hampshire's Poor
Several thousand New Hampshire Medicaid patients find themselves without health care providers.The non-profit health system which had been caring for them has rebelled decisively against state cuts to their reimbursement for treating the indigent patients.
When the disenfranchised patients end up in the emergency room,however,the cost of treating them will be much higher than it is now.That is the most expensive form of health care.
The situation in New Hampshire is perhaps occurring elsewhere under the radar.If not,it may well soon be happening.It just points up the dysfunction in the health care system today.
When the disenfranchised patients end up in the emergency room,however,the cost of treating them will be much higher than it is now.That is the most expensive form of health care.
The situation in New Hampshire is perhaps occurring elsewhere under the radar.If not,it may well soon be happening.It just points up the dysfunction in the health care system today.
Monday, October 24, 2011
IBM's Chances of Reaching Its Goal
IBM beat on Q3 earnings,logging earnings per share of 3.28 versus an estimate of 3.22;on revenue,Big Blue was at 26.2 billion dollars,versus an estimate of 26.3.The company raised its full year guidance from 13.25 to 13.35 per share.It's pretty much in line with what we were expecting,said analyst Joe Foresi of Janney Montgomery Scott.
On services,IBM had some pretty positive revenue.About 50% of their revenue comes from the services business.It consists of long term,annuity type contracts.
They do a lot of work in the emerging markets,which should help balance any loss in Europe.Given the size of IBM,it's more of a tanker than a speed boat.There's cautious optimism in their guidance.
We have a price target for them of 199.00.If you look over the short term,there will be swings up and down;but over the long term,the fundamentals are certainly there for their 20.00 earnings per share goal within five years,in Joe Foresi's opinion.
IBM's shares fell sharply following its report release,on traders' fears that a global recession could hamper its profitability.
International Business Machines(IBM)
On services,IBM had some pretty positive revenue.About 50% of their revenue comes from the services business.It consists of long term,annuity type contracts.
They do a lot of work in the emerging markets,which should help balance any loss in Europe.Given the size of IBM,it's more of a tanker than a speed boat.There's cautious optimism in their guidance.
We have a price target for them of 199.00.If you look over the short term,there will be swings up and down;but over the long term,the fundamentals are certainly there for their 20.00 earnings per share goal within five years,in Joe Foresi's opinion.
IBM's shares fell sharply following its report release,on traders' fears that a global recession could hamper its profitability.
International Business Machines(IBM)
Sunday, October 23, 2011
Rice Crop Hindered By Flooding
The UN is warning that flooding in Southeast Asia may result in food shortages.Rice paddies have been devastated in Thailand,Cambodia and Laos.In Thailand and Cambodia,12.5% of the rice has been lost.Thailand,the world's largest rice exporter,may lose up to 25% of its harvest.These losses may cause a 17% price increase.
The Stock Exchange of Thailand is closed today,Monday,for the Chulalongkorn Holiday,which honors the death of a revered king.
In South Korea,the Pohang Iron and Steel Company,or POSCO,has reported a 75% drop in profits.This is because of both less demand and lower steel prices.POSCO is the world's third biggest steel producer.
Taiwan's Yani Tseng won the inaugural LPGA Taiwan Championship on Sunday,shooting a six under par 66 at the Sunrise Golf and Country Club in Yang Mei.It was Tseng's seventh LPGA Tour win of the season as she was cheered on by a large crowd of supporters in her native land.She donated 100,000 dollars of her prize to Taiwan junior golf.
In Bangkok on Monday,it was 88F under scattered clouds.The wind was NE at 6 mph,and the humidity was 58%.
POSCO(PKX)
The Stock Exchange of Thailand is closed today,Monday,for the Chulalongkorn Holiday,which honors the death of a revered king.
In South Korea,the Pohang Iron and Steel Company,or POSCO,has reported a 75% drop in profits.This is because of both less demand and lower steel prices.POSCO is the world's third biggest steel producer.
Taiwan's Yani Tseng won the inaugural LPGA Taiwan Championship on Sunday,shooting a six under par 66 at the Sunrise Golf and Country Club in Yang Mei.It was Tseng's seventh LPGA Tour win of the season as she was cheered on by a large crowd of supporters in her native land.She donated 100,000 dollars of her prize to Taiwan junior golf.
In Bangkok on Monday,it was 88F under scattered clouds.The wind was NE at 6 mph,and the humidity was 58%.
POSCO(PKX)
Retailers Ramp Up Seasonal Hiring
Macy's continues seasonal hiring at its Tysons Corner,Virginia store and other locations.Apply online at macysJOBS.com or visit the website to find Holiday Hiring Events in your area.
Macy's is hiring 78,000 seasonal workers.That is up 4% from last year.
Macy's:Discover the Magic
JC Penney is also hiring at multiple locations.Apply online at www.jcpenneycareers.com
JC Penney:Every Day Matters
Macy's is hiring 78,000 seasonal workers.That is up 4% from last year.
Macy's:Discover the Magic
JC Penney is also hiring at multiple locations.Apply online at www.jcpenneycareers.com
JC Penney:Every Day Matters
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