The Red Roadmaster’s US Market Re-cap + Stock Talk ™
2 February 2010
Date Line: Hong Kong (SAR) China
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Today's Market Roundup: US Stocks close smartly higher on upbeat economic data
Red’s Bull Alert :All three indexes opened with gains and charges steadily North throughout most of the session, finishing near their session highs on the Day Re-cap of the US Stock Market Action for the session ending 1 February 2010 Wall Street ended sharply higher on the 1st day of a new trading month Monday after data showed US personal income rose more than expected in December and manufacturing sector improved significantly in January. Strength among natural resource plays helped the stock market's gain on low-volume that concluded at session highs with all 10 major sectors in positive ground. All three indexes opened with gains and charges steadily North throughout most of the session, finishing near their session highs on the Day The DJIA rose 118.20 pts, or 1.17%, to close at 10,185.53, the S&P 500 gained 15.31 pts, or 1.43% to close at 1, 089.18, and the NAS tallied up a + 23.85pts, or 1.11% to end the session at 2,171.20. The market regained its upward momentum after the Commerce Department said personal income advanced 0.4% in December, the 6th increase in a running, which is slightly higher than the 0.3% median economist forecast. Also helping to boost market sentiment, the Institute of Supply Management's manufacturing index rose to 58.4 in January, the highest level in more than five years. The reading easily topped economists' expectation and showed a significant improvement from December's downwardly revised level of 54.9, reassuring the market that the manufacture sector was well on the way to the recovery. US President Barack Obama proposed a US$3.83T budget on Monday, sending the federal deficit to a record high of US$1.56T. The plan includes US$100B in stimulus spending aimed at job growth and is geared at lowering the deficit in the longer term with a 3 year spending freeze.
Other economic data on Monday weren't as strong as the ISM manufacturing data, continuing the recent hot-and-cold style in economic data that have kept the stock market in irons. Consumer spending, which accounts for about 70% of total economic activity, increased by 0.2% in December, less than analysts' forecasts of 0.3% but still the third increase in a row. Construction spending, meanwhile, slumped 1.2% in December, much worse than economists had projected. On The Company Front: Exxon Mobil, the world's largest publicly traded Oil company, rose 2.7% after posting quarterly results better than analysts had estimated on average, helping push some other Oil company higher too. All 39 components in the S&P 500 energy sector finished the session in higher ground to give the sector a 3.0% gain Freeport McMoRan (FCX 71.59, +4.90) put together its best single-session percentage advance in 6 months. Diversified Metals and Miners settled the session with a 7.3% gain, while Gold stocks gained 6.3%, and steel stocks were sent 5.3% higher. In Asia: Asian stocks climbed from a two-month low after a report showed US manufacturing expanded more than estimated and as commodity prices advanced. The Australian dollar dropped after the central bank unexpectedly left interest rates unchanged. Advancing Sectors: Materials (+3.7%), Energy (+3.0%), Financials (+1.6%), Tech (+1.5%), Industrials (+1.5%), Consumer Discretionary (+1.1%), Consumer Staples (+0.8%), Utilities (+0.7%), Health Care (+0.5%), Telecom (+0.4%) Declining Sectors: (None) Volume and Breadth: trade was light on the NYSE, with about 1.04B.shrs changing hands, below last year's estimated daily average of 2.18B/shrs, and on the NAS, about 2.22 B/shrs traded, above last year's daily average of 1.63B/shrs. Advancers outnumbered decliners on the NYSE by 4 to 1, and on the NAS, about 17 stocks rose for each 10 that fell.
Stocks to Watch Today Aetna Inc (AET), Bridgford Foods Corporation (BRID), Freeport-McMoRan (FCX), and Visa, Inc. (V)
Aetna Inc. (AET) Up-date 1
Last Look: July 8, 2009
February 2, 2010 Paul A. Ebeling, Jnr. Analyst Today, letâ€™s look at Aetna Inc (AET), the giant US insurer, from a Technical POV. The overall indications, after Mondayâ€™s (February 1) market action, are Bearish: in the near term Bearish, mid-term Bearish, and long term Bearish. The recent candlestick analysis is Neutral.
**Chart by: http://www.stockta.com
Latest News and Opinion: Aetna Awards US$20,000 Grant to the National Cancer Coalition Funding will help improve the health and wellness of communities in the Dominican Republic, Ghana and the Philippines
Mondayâ€™s Market Action Close 29.77
There is one Gap open up on November 4, 2009 at 26.65/27.37, the near term resistance is 30.64, support at 28.64, and the 50 day (EMA) exponential moving average is 30.99. This is Aetna Inc (AET): The Company, one of the largest health insurers in the US, also offers life, disability, and long-term care insurance, as well as retirement savings products. Its Health Care division offers managed care plans, health savings accounts, and traditional indemnity coverage, along with dental, vision, behavioral health, and Medicare plans. The division covers nearly 18 million medical members. Aetna's Group Insurance segment sells life, disability, and long-term care insurance nationwide. And its Large Case Pensions segment offers pensions, annuities, and other retirement savings products.
Competitive Landscape Demand is driven by the rising costs of providing medical care. The profitability of individual companies depends on efficient operations and the ability to negotiate favorable contracts with healthcare providers. Large companies and organizations have advantages in negotiating contracts with healthcare providers. Small companies can compete successfully only by providing special coverage plans, or in small markets. The industry is highly automated: annual revenue per employee is close to US$1M. Managed Healthcare Industry Forecast US personal consumption expenditures on health insurance premiums, an indicator for managed healthcare services, are forecast to flatten with an annual compounded growth rate of 0 percent between 2008 and 2013. Data Sourced: December 2009
Aetna Inc. (HQ) Ronald A. Williams Chairman and Chief Exec. Officer, 151 Farmington Avenue Hartford, CT 06156 United States Phone: 860-273-0123 Fax: 860-275-2677
Bridgford Foods Corporation (BRID) First Look February 2, 2010 Paul A. Ebeling, Jnr. Analyst Today, letâ€™s look at Bridgford Foods Corporation (BRID, a manufacturer, marketer, and distributor of frozen, refrigerated, and snack food products in the United States and Canada, from a Technical POV. The overall indications, after Mondayâ€™s (February 1) market action, are Bullish: in the near term Neutral, mid-term Bullish, and long term Very Bullish. The recent Candle Stick analysis:
**Chart by: http://www.stockta.com
Latest News and Opinion: Bridgford Foods: Hungry Shareholders Satisfied http://seekingalpha.com/article/185322-bridgford-foods-hungry-shareholders-satisfied?source=yahoo
Tuesday’s Market Action Close 11.22
There is an Inverted Hammer on January 29, and Gaps open up on the Chart, the near term resistance is 11.41, support at 11.19, and the 50 day (EMA) exponential moving average is 10.25. This is Bridgford Foods Corporation (BRID): the Company together with its subsidiaries, engages in the manufacture, marketing, and distribution of frozen, refrigerated, and snack food products in the United States and Canada. The company’s Frozen Food Products segment processes and distributes approximately 170 frozen food products through wholesalers, cooperatives, and distributors for food service and retail customers. Its Refrigerated and Snack Food Products segment processes and distributes approximately 240 different items, including refrigerated meat and other convenience foods, through a direct store delivery network, to supermarkets, mass merchandise, and convenience retail stores. The company’s product lines include biscuits, bread dough items, roll dough items, dry sausage products, beef jerky, sandwiches, and sliced luncheon meats. It also resells jerky, cheeses, salads, party dips, Mexican foods, nuts, and other delicatessen type food products. Bridgford Foods Corporation was founded in 1952 and is based in Anaheim, California. Competitive Landscape Demand is driven largely by demographic shifts, particularly trends in population and age, working women, race and ethnicity, household size, and levels of disposable income. The profitability of individual companies depends on a good product mix and efficient operations. Large distributors are advantaged by bulk purchasing and economies of scale in distribution. Smaller companies can compete effectively by specializing in organic, natural, or kosher products or focusing on a geographical area. Average annual revenue per worker for a typical company is US$675,000. Bridgford Foods Corp. (HQ) William L. Bridgford Chairman, and Principal Exec. Officer, 1308 North Patt Street Anaheim, CA 92801 United States Phone: 714-526-5533 Fax: 714-992-9321 http://www.bridgford.com
Freeport-McMoRan Copper & Gold Inc. (FCX) Up-date 19
Last Look: January 14, 2009 6
Febuary 2, 2010 Paul A. Ebeling, Jnr. Analyst Today, let’s look at Freeport-McMoRan (FCX), the giant Gold and Copper miner, from a Technical POV. The overall indications, after Monday’s (February 1) market action, are Bearish: in the near term Bearish mid-term Neutral, and long term Bearish. The recent Candle Stick analysis is: Neutral.
**Chart by: http://www.stockta.com
Latest News and Opinion: Energy, Metals Stocks Lead Market Higher http://online.wsj.com/article/SB10001424052748704107204575038752110124626.html? ru=yahoo&mod=yahoo_hs
Monday’s Market Action Close 71.59 + 4.90
Volume 24,415,000/shrs 7
There is a DOJI on January 27, and on Gap open up on September 3, 2009 at 62.24/62.60, the near term resistance is 72.76, support at 70.79, and the 50 day (EMA) exponential moving average is 78.70. This is Freeport-McMoRan (FCX): Freeport-McMoRan Copper & Gold, Inc. engages in the exploration, mining, and production of mineral properties primarily in Indonesia, North America, South America, and Africa. It focuses on the copper, gold, molybdenum, and silver prospects. The company holds interests in the Grasberg open pit and Deep Ore Zone projects in Indonesia. It also owns interests in the Grasberg, Kucing Liar, Mill Level Zone/Deep Mill Level Zone, and Big Gossan projects in Indonesia. In addition, the company holds interests in the Morenci project in Greenlee County, Arizona; the Safford project in Graham County, Arizona; the Bagdad project in Yavapai County in west-central, Arizona; the Sierrita project in Pima County, Arizona; the Miami project in Gila County, Arizona; the Chino and Tyrone project in southwestern New Mexico in Grant County; the Henderson project located approximately 42 miles west of Denver, Colorado; and the Climax molybdenum mine in Colorado, which are located in North America. Further, it owns interests in the Cerro Verde project located 20 miles southwest of Arequipa, Peru; the Candelaria project situated approximately 12 miles south of Copiapo in northern Chiles Atacama province; the Ojos del Salado project located approximately 10 miles east of Copiapo in northern Chiles Atacama province; the El Abra project situated 47 miles north of Calama in Chiles El Loa province, which are located in South America. Additionally, the company holds interests in the Tenke Fungurume project in the Democratic Republic of Congo; and the Atlantic Copper project in Huelva, Spain. At December 31, 2007, it had total consolidated recoverable proven and probable reserves of approximately 93.2 billion pounds of copper; 41.0 million ounces of gold; 2.0 billion pounds of molybdenum; 230.9 million ounces of silver; and 0.6 billion pounds of cobalt.
The Competitive Landscape Demand is driven by industrial demand and economic growth, both domestic and foreign. Individual company profitability depends on volume and operating efficiency. Large companies can afford to discover and develop new deposits and increase reserves. Small companies typically own just one mine, limit exploration to that one property, and operate it as efficiently as possible. Metal ore mining is highly automated: annual revenue per employee is about US$300,000. Metal Ore Mining Industry Forecast The output of US metal mining is forecast to grow at an annual compounded rate of 5.4 % between 2008 and 2013.
Freeport-McMoRan (HQ) Chief Exec. Officer, Pres Richard C. Adkerson One North Central Avenue Phoenix, AZ 85004-4414 United States Phone: 602-366-8100 http://www.fcx.com
Freeport-McMoRan Subsidiaries Atlantic Copper, S.A., Chino Mines Company and Climax Molybdenum Company
Visa, Inc. (V) Up-date 2
Last Look: October 27, 2009
February 2, 2010 Paul A. Ebeling, Jnr. Analyst Today letâ€™s look at Visa, Inc. (V), the operator of the World's largest consumer payment system, from a Technical POV. The overall analysis after Mondayâ€™s (February 1) market action is Neutral: in the near term Neutral, mid-term Neutral, and long term Neutral. The recent Candle Stick Analysis is: Very Bearish.
**Chart by: http://www.stockta.com
Latest News and Opinion: Visa Uses 3D Video to Bring Go World Ad Campaign to Life in Grand Central Terminal http://finance.yahoo.com/news/Visa-Uses-3D-Video-to-Bring-bw-498822971.html?x=0&.v=1
Monday’s Market Action
There is a Bullish Engulfing Candle on January 27 and three Gaps open up between October 7, and November 4, 2009 at 68.70/78.12, the near term resistance is 84.45, support at 81.62, and the 50 day (EMA) exponential moving average is 83.60. This is Visa, Inc. (V): Visa operates the world's largest consumer payment system (ahead of MasterCard and American Express) with some 1.6 billion credit and other payment cards in circulation. It licenses the Visa name to member institutions, which issue and market their own Visa products and participate in the VisaNet payment system (authorization, transaction processing, and settlement services). Visa also provides its customers with debit cards, Internet payment systems, value-storing smart cards, and traveler's checks. Visa Inc., which was created by a restructuring of several Visa organizations, went public in 2008 and raised about US$17B. Industries Where Visa Inc Competes
Electronic Payment Systems (primary) Financial Services Transaction, Credit & Collections Lending Credit Cards
Visa, Inc. (HQ) Joseph W. Saunders, Exec. Chairman and Chief Executive Officer P.O. Box 8999 San Francisco, CA 94128-8999 United States Phone: 415-932-2100 http://www.corporate.visa.com
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Red’s Bull Alert:All three indexes opened with gains and charges steadily North throughout most of the session, finishing near their session...