Category Archives: Companies

Stock Market Higher on Positive Banking Earnings

U.S. equities rose on Friday as investors parsed through quarterly results from several big banks and economic data.

The Dow Jones industrial average rose more than 150 points before holding about 110 points higher, with Goldman Sachs contributing the most gains. The S&P 500 rose approximately 0.4 percent, with information technology and financials leading advancers.

The Nasdaq composite gained 0.4 percent.

JPMorgan Chase, Wells Fargo and Citigroup all posted better-than-expected quarterly results, beating estimates on both the top and bottom lines.

In economic news, U.S. retail sales rose 0.6 percent in September, matching expectations. Meanwhile, the Labor Department said its producer price index for final demand increased 0.3 percent after being unchanged in August.

Other data released Friday included business inventories, which rose 0.2 percent in August. Meanwhile, October consumer sentiment came in at 87.9, well below an estimate of 92, as concerns over the U.S. presidential election weighed.

Investors have been heavily scrutinizing U.S. economic data recently, trying to gauge the likelihood that the Federal Reserve raises interest rates later this year. According to the CME Group’s FedWatch tool, market expectations for a December rate hike are more than 60 percent.

The dollar rose 0.43 percent against a basket of currencies, with the euro near $1.099 and the yen around 104.18.

In oil markets, U.S. crude traded about 1 percent lower at $49.96 per barrel.

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Penny Stock Picks for 2016

The best penny stock picks for 2016 from FalconStocks.com

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Nasdaq briefly positive; Street awaits Fed

WEDNESDAY – U.S. stocks traded in narrow range Wednesday after morning data and ahead of the scheduled afternoon conclusion of the Fed meeting.

Treasury yields climbed, with the 2-year topping 1 percent for its highest since Jan. 8, after inflation and housing data.

Stocks opened lower and held mostly in the red in morning trade. The Nasdaq composite briefly attempted gains.

The FOMC is due to conclude its two-day meeting on Wednesday with the 2 p.m. ET release of its statement and economic projections. Those include the highly scrutinized “dot plot,” which shows the targets for appropriate federal funds rates by FOMC participants. Fed Chair Janet Yellen is also scheduled to give a news conference at 2:30 p.m.

Oil traded higher, with WTI above $37 a barrel following news producers will meet next month in Qatar to discuss a proposal to freeze output.

Coming Up:

Wednesday

Earnings: FedEx, Ctrip.com Intl., Guess, Herman Miller, Jabil Circuit
10:30 a.m.: Oil inventories
1 p.m.: European Central Bank President Mario Draghi gives welcoming remarks at ECB Contemporary Art From Poland Exhibition
2 p.m.: FOMC meeting announcement
2:30 p.m.: Fed Chair Janet Yellen press conference

Thursday

Bank of England monetary policy announcement and minutes
Earnings: Tencent, Michaels Cos., Intl. Game Technology, Lands’ End, Adobe Systems
8:30 a.m.: Jobless claims
8:30 a.m.: Philly Fed business outlook survey
8:30 a.m.: Current account
10 a.m.: JOLTS
10 a.m.: Leading indicators
10:30 a.m.: Natural gas inventories
4:30 p.m.: Fed balance sheet/Money supply

Samsung wins appeal dispute with Apple

A U.S. appeals court just overturned a $120 million verdict against Samsung,  in its patent feud with Apple.

The court said Samsung  did not infringe Apple‘s “quick links” patent, and that two other patents covering the iPhone’s slide-to-unlock and auto-correct features were not valid. The court also said Apple was liable for infringing one of Samsung‘s patents.

The Most Shorted NYSE Stocks

Chesapeake Energy Corp. (NYSE: CHK) saw its short interest drop less than 3% to around 224.80 million shares by the end of January. That was the third consecutive period of decline, and it was 34.4% of the company’s float. The days to cover remained about eight as the daily average volume pulled back.

The short interest in Freeport-McMoRan Inc. (NYSE: FCX) surged another 25% between the most recent settlement dates to more than 222.71 million shares. That followed a 15% gain in the previous period, and it was 19.6% of the miner’s float. It would take about three days to cover all short positions, as the average daily volume rose to a 52-week high.

Sprint Corp.’s (NYSE: S) short interest declined about 5% in the final weeks of the month, ending five consecutive periods with an expanding number of shares short. The most recent reading of around 212.78 million was 34.2% of the float. The days to cover dropped from more than 13 to about six as the daily average volume increased.

The number of Vale S.A. (NYSE: VALE) shares short dropped by some 19.66 million in the two weeks to almost 198.12 million. At the most recent average daily volume, it would take about seven days to cover all short positions, down from nine mid-month.

Petróleo Brasileiro S.A. (NYSE: PBR), better known as Petrobras, saw the number of its shares short shrink by 2.7% in the two weeks to almost 191.18 million. That was still the second highest level of short interest in the past year. The days to cover fell to about six as the average daily volume increased again.

A nearly 14% rise brought Alcoa Inc.’s (NYSE: AA) number of shares short to more than 187.78 million at the end of the two-week period. That was the fifth straight period of rising short interest, up to some 14.7% of Alcoa’s total float. The days to cover increased from three to about five.

Are Small Caps Less Risky Than You Think?

Here’s a thing I like about small companies. In many cases, the people who run them aren’t just executives — they’re proprietors who took massive risks to build what exists today and who run themselves ragged to make sure that what does exist will be even better in the future. While I’ve met hundreds of extremely competent, dedicated executives over the years, there’s just something different about the person who scratch-built a company. To him or her, there is no such thing as a better employment offer around the bend. There’s no such thing as down time, or weekends, or even hobbies. This company is it. There’s no pushing ideas through some big committee. That person is the committee.

Maybe those kinds of companies sound a little risky to you. After all, doesn’t classic finance hold that, all else being equal, the smaller a company is, the riskier it is? Well, yes, on a company-by-company basis, those with smaller market capitalizations are riskier in terms of volatility and potential for total loss.

I believe, all else being equal, that this is insane in the aggregate. There is no reason that a portfolio of well-researched, quality small-cap companies should be riskier than one consisting of large-cap companies.

Stocks Lower on Weak Service Data

WEDNESDAY – U.S. stocks were lower on Wednesday, erasing initial gains, despite an oil bounce and decent jobs data.

The Dow briefly rose 100 points shortly after the open and fell 100 after the ISM non-manufacturing index reading for January came in weaker than expected.

Coming Up This Week:

Wednesday

Earnings: MetLife, Allstate, AvalonBay, Boston Properties, GoPro, Lincoln Natl., NXP Semiconductor, Yum Brands
9:45 a.m. Services PMI
10 a.m. ISM nonmanufacturing
10:30 a.m.: Oil inventories

Thursday

Earnings: AstraZeneca, ConocoPhillips, Philip Morris, Cigna, Clorox, Credit Suisse, Dunkin Brands, NY Times, Tempur Sealy, Hartford Fincl., LinkedIn, News Corp., Symantec, Decker’s Outdoor, DeVry Education, Lions Gate
7:30 a.m.: Challenger Job-Cut Report
8:30 a.m. Initial claims; productivity and costs
10 a.m. Factory orders
10:30 a.m.: Natural gas inventories
4:30 p.m.: Fed Balance Sheet/Money Supply
5 p.m. Cleveland Fed President Loretta Mester on economy, policy

Friday

Earnings: BNP Paribas, Nippon Telegraph, Estee Lauder, Toyota Motors, Tyson Foods, Moody’s, Weyerhaeuser, Aon, CME Group, Ametek
8:30 a.m. Employment report; international trade
1 p.m.: Oil rig count
3 p.m. Consumer credit, Treasury STRIPS

Google Will Highlight Core Business

Monday’s earnings report will mark a new day for Google’s parent company, Alphabet. ($GOOG)

For the first time, revenue for its core products — search, mobile and video — will be separated and $GOOG will account for the cost of its experimental projects when the company reports after the bell Monday.

Overall, analysts predict Alphabet’s profit on Class C shares will have grown 18 percent year on year to $8.09 per share, on revenue of $20.763 billion, up 43 percent year over year, according to Thomson Reuters’. Class A earnings per share are expected to have grown 18 percent year over year to $8.10 on $20.764 billion in revenue, a 15 percent increase.

Retail Stocks May Be The New Winners

As the retail sector gained Monday, one group of suffering stocks led the way, jumping 1.2 percent: the multiline retail stock group, which includes names such as Target, Dollar Tree and Nordstrom.

The average national gas price recently fell to $2.29 from $2.33 a week ago, according to AAA’s Daily Fuel Gauge, translating into more available funds for consumer discretionary spending.

Barron’s wrote over the weekend that Dollar Tree is expected to outperform compared to estimates, based on long-term gains from its acquisition of  Family Dollar. The stock rose 1.8 percent on Monday.

Retail ETFs also seem to be at an inflection point and the money flow looks to turn positive.

After being down about 5% this calendar year, retail is moving higher and may one of the few winners by the end of the year.

Penny Stock DigiPath Skyrockets; Management Issues Press Release

DigiPath LogoDigiPath, Inc. (OTCBB and OTCQB: DIGP), a digital pathology solution provider that is expanding into the cannabis testing and education markets, announced today there has been no material development in its business and affairs not previously disclosed or, to its knowledge, any other reason to account for the recent unusual market action.

“We have noticed unusual price and volume increases for our securities over the last three trading days,” said Steve Barbee, CEO of DigiPath. “While we appreciate the increased attention DigiPath is receiving from the market, we are unaware of any corporate developments outside of those previously disclosed in our filings with the Securities and Exchange Commission that would explain these increases.”

The stock closed at $0.51 on Friday, July 25 but after opening at $0.55 on Monday, July 28, it traded as high as $6.00 per share and finally closed at $2.50. That day, it traded over 400,000 shares but averages less than 20,000 shares traded daily (previous 3 months).

We have not yet seen any websites or newsletters that have pumped the stock; and seen nothing more than message boards and traders taking advantage.

This again highlights the need to follow only unbiased penny stock picks and penny stock newsletters as most are either paid to pick a stock or own shares and are actually selling when telling you to buy!