Quantum Wealth Creation

2 Obama nominees to Fed board are confirmed

Quantum — Sun, 20 May 2012 00:56:50 +0000

2 Obama nominees to Fed board are confirmed

The U.S. Senate confirmed Jerome Powell, an investment banker, and Jeremy Stein, a Harvard University professor, to the Federal Reserve Board, putting it at full strength for the first time since 2006. “At this time when our economy is struggling to maintain forward momentum and the Federal Reserve is faced with difficult decisions about how to help the recovery without creating problems in the future, it’s critical we not leave the Fed undermanned,” Sen. Charles Schumer said before the vote.

This news summary appeared in CFA Institute Financial NewsBrief on 05/18/2012
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Washington Post, The

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Europe’s troubles still hinder U.S. economy, Geithner says

Quantum — Sun, 20 May 2012 00:56:49 +0000

Europe’s troubles still hinder U.S. economy, Geithner says

Treasury Secretary Timothy Geithner said the financial crisis and economic woes in Europe continue to threaten the U.S. economy. “We still have a lot of work to do to repair the damage from the crisis and get more Americans back to work. And we still face some risks ahead,” Geithner said. “We still live in a dangerous and uncertain world, with Europe confronting a severe and protracted crisis.”

This news summary appeared in CFA Institute Financial NewsBrief on 05/18/2012
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Bloomberg Businessweek

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IMF and U.K. suggest ECB could do more to resolve crisis

Quantum — Sun, 20 May 2012 00:56:47 +0000

IMF and U.K. suggest ECB could do more to resolve crisis

The International Monetary Fund indicated that the European Central Bank could do more to resolve the eurozone’s crisis. “The ECB has room for further monetary easing, given the expected weakening of underlying pressures,” spokesman David Hawley said. “The policy rate remains at an historic lower bound of 1%, but this could be reduced further as inflation is expected to drop well below 2%.” Meanwhile, British Prime Minister David Cameron said the ECB and core eurozone nations could take steps to bolster demand and improve the economy.

This news summary appeared in CFA Institute Financial NewsBrief on 05/18/2012
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Reuters

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Facebook is poised to raise $18.4 billion from IPO

Quantum — Sat, 19 May 2012 12:56:14 +0000

Facebook is poised to raise $18.4 billion from IPO

Facebook priced its initial public offering at the top of a previously set range, at $38 a share, after investors rebuffed higher figures. The effort would value the social network at $104 billion, making it the most valuable U.S. company at the time of listing. Facebook is on track to raise about $18.4 billion, making it the second-biggest IPO in the U.S. In 2008, Visa raised $19.65 billion through its IPO.

This news summary appeared in CFA Institute Financial NewsBrief on 05/18/2012
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Financial Times

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Asian-Pacific markets drop as European situation worsens

Quantum — Sat, 19 May 2012 12:56:11 +0000

Asian-Pacific markets drop as European situation worsens

Asian-Pacific stock markets declined Friday as weak U.S. manufacturing data added to escalating concerns about Europe’s crisis. Japan’s Nikkei 225 dropped 2.4%. South Korea’s Kospi gave up 2.6%. Australia’s SP/ASX 200 fell 1.8%. Hong Kong’s Hang Seng Index lost 2.3%. China’s Shanghai Composite slid 1.1%. Singapore’s Straits Times Index was down 1.5%.

This news summary appeared in CFA Institute Financial NewsBrief on 05/18/2012
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Wall Street Journal, The

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Rolet continues to transform London Stock Exchange

Quantum — Sat, 19 May 2012 12:56:08 +0000

Rolet continues to transform London Stock Exchange

During his three years at the helm of the London Stock Exchange, Xavier Rolet has faced myriad challenges and proved that he is a man on a mission. Although there have been missteps, Rolet has been successful in finding revenue sources, easing the exchange’s dependence on share trading. “Xavier’s greatest achievement is transforming the business, from a largely U.K. cash-equity business to one that now has a technology offering, an indices business and now a clearinghouse,” said RBC Capital Markets analyst Peter Lenardos.

This news summary appeared in CFA Institute Financial NewsBrief on 05/18/2012
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Reuters

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Best Buy’s Call Volume Spikes Ahead of Earnings

Quantum — Sat, 19 May 2012 06:56:05 +0000

Call players took a shine to Best Buy., Inc. (BBY – 18.17) on Thursday, despite the stock receiving a price-target cut to $23 from $27 at RBC Capital Markets. Approximately 26,000 of these options were exchanged, which was four times the norm. Most popular was the out-of-the-money June 20 strike, where north of 7,300 calls were traded — the majority of them at the ask price, suggesting they were bought. This strike saw an overnight rise in open interest of 6,128 contracts, pointing to an influx of new positions. This option is now home to open interest of 8,666 contracts. By purchasing these calls to open, speculators are betting on the stock to surmount $20 by June expiration.

This rise in call volume is unusual for the electronics retailer. BBY sports a Schaeffer’s put/call open interest ratio (SOIR) of 1.13, indicating that puts outnumber calls among options set to expire in three months. This ratio registers in the 84th percentile of its annual range, meaning that traders have been more put-heavy toward the stock just 16% of the time during the past 12 months.

What’s more, short interest on BBY jumped by over 18% during the last two reporting periods, and now accounts for nearly 20% of the equity’s available float — or nine days’ worth of pent-up buying demand, at the stock’s average pace of trading. This implies that some of yesterday’s call volume could be the work of short sellers looking to hedge their bearish bets.

On the technical front, BBY has shed a whopping 42% on a year-over-year basis, and has lagged the broader SP 500 Index (SPX) by 27% during the past 40 sessions. A look at the charts shows that the stock remains pinned beneath its 10-month moving average, which has acted as resistance since December 2010. In fact, the equity tagged a new multi-year low of $17.84 earlier in the session.

At last check, BBY is down about 1.4% to hover at $18.17, after Barclays lowered its price target to $21 from $25. The company is slated to reveal quarterly earnings on Tuesday, May 22.

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Article source: http://www.schaeffersresearch.com/marketcenters/optionscenter/content/best+buys+call+volume+spikes+ahead+of+earnings/default.aspx?ID=111202&c=obsfeed

Midday Market Stats: Dow Jones Industrial Average Dips 32 Points

Quantum — Sat, 19 May 2012 06:56:04 +0000

The Dow Jones Industrial Average (DJI – 12,410.78) is down 32 points, or 0.3%, as investors have temporarily shifted their focus from the debt-laden euro zone to Facebook’s (FB) market debut. Elsewhere, the CBOE Market Volatility Index (VIX – 24.20) is down 0.3 point, or 1.2%.

Here are a few noteworthy stats at midday:

The equity put/call volume ratio across all nine options exchanges stands at 1.19, with 4.5 million puts crossing the tape so far today, versus 3.7 million calls.

Among the securities with put-skewed activity is Autodesk, Inc. (ADSK – 29.33), which is down about 15.6% today. The software issue was hit with a pair of price-target cuts at Jefferies and MKM after reporting weak current-quarter guidance.
The put/call volume ratio on the iPath SP 500 VIX Short-Term Futures ETN (VXX) checks in at 0.71, with calls comfortably outstripping puts.
The Nasdaq has 103 securities at new annual lows, compared to just four at new highs.
Among those stocks at fresh annual lows is Aruba Networks (ARUN – 14.30), which has lost about 6.4% in intraday trading. The networking provider sank to a new multi-year low of $14.10 and received several price-target cuts after revealing disappointing quarterly revenue projections.

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Article source: http://www.schaeffersresearch.com/marketcenters/optionscenter/content/midday+market+stats+dow+jones+industrial+average+dips+32+points/default.aspx?ID=111206&c=obsfeed

Ann, Foot Locker, Salesforce.com Rise; Autodesk, Kirkland’s, Gap Fall

Quantum — Sat, 19 May 2012 00:54:32 +0000

11:25 AM New York – Ann first quarter net rose 5% and lifted second quarter outlook. Donaldson third quarter increased 15% to $70.9 million. Foot Locker first quarter net surged 36% to $128 million. Salesforce.com first quarter net swung to $19.5 million loss. The Gap first quarter net was flat at $233 million.

Ann Inc. (ANN) gained 3.9% or $1.01 to $26.86 after the specialty retailer reported first quarter net sales grew 7% to $560.4 million compared to $523.6 million in the same period last year. Comparable store sales increased 3.8%.

Net income in the quarter rose 5% to $28.7 million or 58 cents per diluted share compared to $27.3 million or 51 cents per share a year ago earlier.

For the fiscal second quarter the apparel retailer expects total net sales of $585 million and for fiscal 2012 total net sales of $2.38 billion.

Autodesk, Inc. (ADSK) tumbled 16.5% or $5.76 to $28.97 after the software company reported first quarter revenue increased 11% to $588.6 million compared to $528.3 million in the same period last year. Net income in the quarter increased 14% to $78.9 million or 34 cents per diluted share compared to $69.3 million or 29 cents per share a year ago quarter.

Net revenue for fiscal 2013 is expected to increase by 10% and revenue in second quarter is expected to be about $580 million to $600 million.

Donaldson Company, Inc. (DCI) advanced 2.4% or 79 cents to $33.33 after the filtration system maker reported third quarter revenue rose 9% to $647.2 million compared to $594.6 million in the same period last year. Net earnings in the quarter increased 15% to $70.9 million or 46 cents per diluted share compared to $61.8 million or 39 cents per share a year ago period.

The company forecast full year sales to be about $2.5 billion or raised approx 9% from the prior year.

Foot Locker, Inc. (FL) soared 10.2% or $2.88 to $30.89 after the athletic apparel retailer reported first quarter sales grew 8.7% to $1.58 billion compared to $1.45 billion in the same period last year. Comparable store sales increased 9.7%.

Net income in the quarter surged 36% to $128 million or 83 cents per diluted share compared to $94 million or 60 cents per share a year ago earlier.

Hibbett Sports, Inc. (HIBB) rose 26 cents to $56.07 after the sporting goods retailer reported first quarter sales surged 14.4% to $232.9 million compared to $203.7 million in the same period last year. Comparable store sales increased 11.1%.

Net income in the quarter soared 23.5% to $26.4 million or 98 cents per diluted share compared to $21.3 million or 76 cents per share a year ago earlier.

The Hibbett raised earnings guidance for Fiscal 2013 to a range between $2.50 and $2.65 per diluted share.

Kirkland’s, Inc. (KIRK) plunged 12% or $1.55 to $11.30 after the home decor and gift retailer reported first quarter sales rose 3.6% to $97.8 million compared to $94.4 million in the same period last year. Comparable store sales fell 1.2%.

Net income in the quarter tumbled 38% to $2.0 million or 10 cents per diluted share compared to $3.2 million or 15 cents per share a year ago earlier.

Marvell Technology Group Ltd. (MRVL) increased 1.5% or 20 cents to $13.50 after the Bermuda based chip maker reported first quarter revenue edged down to $796.4 million compared to $802.4 million in the same period last year. Net income in the quarter declined 35% to $94.5 million or 16 cents per diluted share compared to $146.9 million or 22 cents per share a year ago quarter.

Salesforce.com, Inc. (CRM) surged 9.6% or $12.91 to $146.71 after the cloud computing solution provider reported first quarter revenue soared 38% to $695.5 million compared to $504.4 million in the same period last year. Net loss in the quarter swung to $19.5 million or 14 cents per diluted share compared to net income of $0.53 million or break even per share a year ago.

Revenue for the second fiscal quarter 2013 is projected to be in the range of $724 million and $728 million increase of 33% from a year ago. Revenue for the full year will be in the range of $2.97 billion to $3.00 billion increase of 31% to 32% from a year ago.

The Gap, Inc. (GPS) decreased 1.5% or 40 cents to $25.91 after the specialty apparel retailer reported first quarter net sales increased 6% to $3.5 billion compared to $3.3 billion in the same period last year. Comparable store sales increased 4%.

Net income in the quarter flat to $233 million compared to first quarter of last year. Diluted earnings in the first quarter increased 47 cents compared to 40 cents per share a year ago period.

Article source: http://www.123jump.com/us_stockmovers/Ann-Foot-Locker-Salesforce.com-Rise;-Autodesk-Kirkland’s-Gap-Fall/48744/

Stock Market News for May 18, 2012

Quantum — Sat, 19 May 2012 00:54:28 +0000

The Dow and SP 500 extended their losses into a fifth-straight day and the Nasdaq also took a hammering, as discouraging domestic economic data added to the woes of lingering Greek concerns. The mid-Atlantic region witnessed its first drop in manufacturing activity in eight months and the outlook for US economic growth showed a declining trend for the first time in six months. With these concerns sinking the benchmarks, the Dow suffered its 11th decline in the past 12 sessions and ended at its lowest level since January this year.

The Dow Jones Industrial Average (DJI) dropped 1.2% and ended significantly lower at 12,442.49. The Standard Poor 500 (SP 500) slumped 1.5% to finish yesterday’s trading session at 1,304.86. The tech-laden Nasdaq Composite Index crashed 2.1% and closed at 2,813.69. The fear-gauge CBOE Volatility Index (VIX) shot up almost 10% to settle at 24.49. Consolidated volumes on the New York Stock Exchange, American Stock Exchange and Nasdaq were roughly 8.35 billion shares, sharply higher than the daily average of 6.81 billion. Decliners drubbed the advancing stocks on the NYSE; as for 84% of the decliners, only 13% stocks could move higher. The remaining stocks were left unchanged.

European political uncertainty has taken a toll on global as well as US benchmarks. France has a new government in place and Greece is yet to finalize on one. Germany’s Angela Merkel too has lost a poll recently, which she termed as a “bitter, painful defeat”. All through this week Greek concerns have dampened sentiment overshadowing positives such as encouraging economic readings.

The concerns which have dominated the week are clearly reflected in the performance of benchmarks. So far this week, the Dow, SP 500 and Nasdaq are down 3.0%, 3.6%, and 4.1%, respectively. Additionally, this was the second near 10% jump for the VIX this week. On Monday, the VIX had jumped precisely 9.95% and has followed it up with an uptrend since then. Yesterday it jumped 9.97% and subsequently the VIX hit its highest level since late December last year.

Amidst ongoing Greek concerns, economic readings have been the only saving grace, though they have failed to rescue markets from their consistent slump. However, yesterday even economic readings were a big disappointment and that ensured a heavy fall for the benchmarks. The Philadelphia Federal Reserve’s business conditions index showed a declining trend and was at its lowest level since September last year. The Business Outlook Survey for the month of May noted: The survey’s broad indicators for general activity fell into negative territory for the first time in eight months. Indicators for new orders and employment also suggested slight declines from April”. According to the report, the ‘measure of manufacturing conditions, the diffusion index of current activity,’ was down to ‐5.8 in May from a positive 8.5 in April. This was also contrary to consensus estimates of a reading of 9.4.

Separately, The Conference Board Leading Economic Index contracted 0.1% last month to 95.5. This was the first decline in six months. In March it had rose 0.3% and had registered a 0.7% increase in February. The 0.1% fall was in absolute contrast to the 0.1% uptrend predicted by consensus estimates. Ken Goldstein, economist at The Conference Board, said “The indicators reflect an economy that’s still struggling to gain momentum. Growth is slow, but choppy, and consumers, executives and investors are looking for more progress”.

Meanwhile, first-time claims for unemployment benefits remained unchanged over last week. The U.S. Department of Labor reported: “In the week ending May 12, the advance figure for seasonally adjusted initial claims was 370,000, unchanged from the previous week’s revised figure of 370,000”. Consensus estimates had expected initial claims to be around 367, 000.

As for the sectors, the Technology Select Sector SPDR (XLK) slumped 1.5%. Among the tech stocks, Apple Inc. (NASDAQ:AAPL – Analyst Report), SanDisk Corporation (NASDAQ:SNDK – Analyst Report), Seagate Technology PLC (NASDAQ:STX – Snapshot Report), Google Inc (NASDAQ:GOOG – Analyst Report), Yahoo! Inc. (NASDAQ:YHOO – Analyst Report), and Oracle Corporation (NASDAQ:ORCL – Analyst Report) plunged 2.9%, 3.3%, 5.2%, 0.9%, 2.7% and 1.8%, respectively.

Read the full analyst report on AAPL

Read the full analyst report on SNDK

Read the full analyst report on STX

Read the full analyst report on GOOG

Read the full analyst report on YHOO

Read the full analyst report on ORCL

Article source: http://www.zacks.com/stock/news/75403/stock-market-news-for-may-18-2012