The Red Roadmasterâ€™s US Market Monthly Re-cap + Stock Talk â„˘
5 February 2010
Date Line: Hong Kong (SAR) China
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The DJIA fell below 10,000, a Key level Friday and bounced, Tech leads
Re-cap of the US Stock Market Action for the Month ending 5 February 2010 US stocks erased a mid-day slide in the last half hour to close in the Green higher, ending a volatile week. All three major indexes turned Green at the last half-hour as they headed into the close Friday. Investors bought up shares in the technology and materials sectors, two sectors that are grossly oversold on the recent dip. It is call bargain hunting in an oversold market. On the Day: The DJIA closed up 10.05 pts, or 0.10%, at 10,012.23, the S&P 500 added 3.08 pts, or 0.29%, to close at 1,066.19, and the NAS tallied up a + 15.69 pts, or 0.74%, to end the session and the week at 2,141.12. On the Week, the DJIA fell 0.6% the S&P 500 lost 0.7% and the NAS was at a minus 0.3%, marking their 4th weekly drop running. Tech bell weathers Cisco Systems and Intel Corp ranked among the DJIA top advancers, and helped the NAS erase losses. Cisco rose 2.3% to close at US$23.70 and Intel gained 2.4% to close at US$19.47/shr. Materials sector issues rebounded after falling throughout the day Friday, with Alcoa Inc (AA) up 2.1% at US$13.18/shr. The laggards included General Electric Co off 1.6% at US$15.79 and Boeing Co down 1.6% at US$58.40/shr.
Volume and Breadth: Total trade of 12.44B/shrs traded on the NYSE, the American Stock Exchange and NAS, well above last year's estimated daily average of 9.65B/shrs on the heaviest trading day since December 18, 2009. Decliners outnumbered advancers on the NYSE by 17 to 13, and on the NAS, about 7 stocks rose for every 6 that fell. The Action Overall A close Look: US stocks moved smartly in the last half hour beginning precisely at 16:00 hrs EST, all three major Indexes touched their lows on the week at the same time and traded higher into the closing Bell. The Job report showed that 20,000 nonfarm jobs were lost in January, worse than the consensus expectation for a gain of 15,000 jobs. However, a pullback in the headline unemployment rate to 9.7% from 10.0%. While buyers temporarily had control as the USD eased off morning highs. After declining as much as 1.8% during the first half of the trading day, the market was able to erase triple digit losses, as the DJIA rebounded over 170 pts, in a late-day short-covering spike that coincided with a pullback in the USD.
On the Earnings Front: Those companies reporting earnings this week include CVS Caremark Corp (CVS) and Hasbro, Inc. (HAS) on Monday morning. On Tuesday: Coca-Cola (KO) and Pulte Homes, Inc. (PHM) announce before the Bell, with The WaltDisney Co. (NYSE: DIS) announcing after the Bell. On Wednesday: Scripps Networks Interactive, Inc. (SNI), Sprint Nextel (S), and the Omnicom Group (NYSE: OMC) will make before the Bell announcements, with Boston Scientific Corp. (BSX) coming in after the Bell. On Thursday: in the morning earnings from Alcatel-Lucent (ALU), PepsiCo. (PEP), and Viacom (VIA.B).
Looking out this Week: earnings season continues but there are fewer major names scheduled to report, only two DJIA components, DIS and KO, due out during this week. Volatility could remain elevated as the market continues to digest macro factors and some growing uncertainty. Uptick in January Retail Sales Expected Retail sales likely grew in January after turning negative in December after two months of gains; the figures are due Thursday. This week, major retailers reported same-store sales rose a higher-thanexpected 3.3% last month, according to Thomson Reuters
And, disregard all Super Bowl/Stock Market Noise. The outcome is meaningless to the stock markets. Stay tuned...
Red Stocks to Watch Today
The Walt Disney Company (DIS), The Coca Cola Company (KO), PepsiCo, Inc. (PEP), and Sprint Nextel (S).
The Walt Disney Company (DIS) Up-date 8
Last Look: November 10, 2009
February 8, 2010 Paul A. Ebeling, Jnr. Analyst Today let’s look at The Walt Disney Company (DIS), Mickey’s World, from a Technical POV. The overall indications, after Friday’s (February 5) market action, are Neutral: in the near term Bearish, mid-term Neutral, and long term Neutral. The recent Candle Stick analysis is: Neutral
Latest News and Opinion: The top movies at the North American box office http://www.reuters.com/article/idCAN1818757320100207?rpc=44
Fridayâ€™s Market Action Close 29.54 -.13 Volume 11,956,400/shrs There are two Gaps open up between September 4, and November 4, 2009 at 26.03/27.90, support is 29.32, the near term resistance 30.14 and the 50 day exponential moving average at 30.50. This is The Walt Disney Company (DIS): The King of the Magic Kingdom is a mouse, we all know him as Mickey. The Walt Disney Company is the world's #2 media conglomerate, # 1 is Time Warner (TWX) with assets encompassing movies, music, publishing, television, and theme parks. Disneyâ€™s TV holdings include the ABC TV network + 10 broadcast stations, and a portfolio of cable networks including ABC Family, A&E Television Networks (37%-owned), and ESPN (80%). Walt Disney Studios produces films through imprints; Walt Disney Pictures, Touchstone, Pixar, and Miramax. In addition, Walt Disney Parks and Resorts is one of the top theme park operators in the world, we all know them as Walt Disney World and Disneyland Resorts. Disney competitors are primarily in the Film & Video industry, DIS also competes in the Internet Content Providers, Music, and Publishing sectors, the competition is; CBS Corp, News Corp, and Time Warner. The Competitive Landscape In the motion picture production and distribution sector consumer spending drives demand. The profitability of individual companies depends on creativity, marketing, and distribution. Large companies have the advantages of long term contracts with key actors and directors, a permanent staff of technical employees, and wide distribution networks. Small companies compete by creating marketable movies, often for niche audiences, on low budgets. Although production work is labor-intensive, the value of the product results in high average annual industry revenue of US$300,000 per employee. The Walt Disney Company (HQ) Robert A. Iger, President, CEO, and Director 500 S. Buena Vista St. Burbank, CA 91521-9722 United States Phone: 818-560-1000 Fax: 818-560-1930 http://disney.go.com/
The Coca Cola Company (KO) Up-date 7
Last Look: January 13, 2010
February 8, 2010 Paul A. Ebeling, Jnr. Analyst Today let’s look at The Coca Cola Company (KO), the world's #1 soft-drink company, from a Technical POV. The overall analysis after Friday’s (February 5) market action is Bearish: in the near term Very Bearish, mid-term Bearish, and long term Neutral. The recent Candle Stick analysis is: Bearish
**Chart by: http://www.stockta.com
Latest News and Opinion: Wall St Week Ahead: Recovery, debt woes to hound http://www.reuters.com/article/idAFN0714391920100207?rpc=44
Fridayâ€™s Market Action Close 53.09
There is a Bearish Harami on February 3, and no Gaps open up on the Chart, the near term resistance is 53.10, support at 52.40, and the 50 day (EMA) exponential moving average is 55.65. This is The Coca Cola Company (KO): Coke is It, "It" being the world's #1 soft-drink company. The Coca-Cola Company owns four of the top five soft-drink brands; Coca-Cola, Diet Coke, Fanta, and Sprite. Its other brands include Barq's, Minute Maid, POWERade, and Dasani water. In North America, it sells Groupe Danone's Evian. Coca-Cola sells brands from Dr Pepper Snapple Group (Crush, Dr Pepper, and Schweppes) outside Australia, Europe, and North America. The firm makes or licenses more than 400 drink products in more than 200 nations. Although it does no bottling itself, Coke owns 35% of Coca-Cola Enterprises, the #1 Coke bottler in the world; 32% of Mexico's bottler Coca-Cola FEMSA; and 23% of European bottler Coca-Cola Hellenic Bottling. Competitive Landscape Demand for non-alcoholic beverages is driven by consumer tastes and demographics. The profitability of individual companies depends on effective marketing. Large manufacturers have economies of scale in production and distribution, with average annual revenue per production worker close to US$1MM. Small companies can compete by producing new products, catering to local tastes, or selling at lower prices. Beverage Manufacture and Bottling Industry Forecast The output of US soft drinks and ice manufacturing is forecast to grow at an annual compounded rate of 4.9 % between 2008 and 2013.
The Coca Cola Company (HQ) Muhtar Kent , Chairman, Chief Exec. Officer, President Coca-Cola Plaza Atlanta, GA 30313-2499 United States
Phone: 404-676-2121 http://www.coca-cola.com Coca-Cola Subsidiaries and Affiliates Coca-Cola FEMSA, S.A.B. de C.V. Coca-Cola GmbH Coca-Cola North America
PepsiCo, Inc. (PEP) Up-date 7
Last Look: January 12, 2010 6
February 8, 2010 Paul A. Ebeling, Jnr. Analyst Today let’s look at PepsiCo, Inc. (PEP), the World's #2 carbonated soft drink maker, from a Technical POV. The overall indications, after Friday’s (February 5) market action, are Neutral, in the near term Neutral , mid-term Neutral,and long term Neutral. The recent Candle Stick analysis is: Very Bullish
**Chart by: http://www.stockta.com
Latest News and Opinion: More Influential to Markets: Super Bowl, G-7 or Puppies? http://blogs.wsj.com/marketbeat/2010/02/05/more-influential-to-markets-super-bowl-g-7-or-puppies/? mod=yahoo_hs
Friday’s Market Action
Close 59.51 -.13 Volume 7,347,700/shrs
There is a DOJI on February 5, are no Gaps open up on the Chart: the near term resistance is 59.86, support at 59.48, and the 50 day (EMA) exponential moving average is 61.05. This is PepsiCo, Inc. (PEP): The PepsiCo vs. KO challenge never ends for the world's #2 carbonated soft-drink maker. Its soft drinks include Pepsi, Mountain Dew, and Slice. Cola is not the company's only beverage: Pepsi sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water. The company also owns Frito-Lay, the world's #1 snack maker with offerings such as corn chips (Doritos, Fritos) and potato chips (Lay's, Ruffles). Its Quaker Foods division offers breakfast cereals (Life), pasta (Pasta Roni), rice (Rice-A-Roni), and side dishes (Near East). A true global giant, Pepsi's products are available in some 200 countries. The Competitive Landscape Demand for non-alcoholic beverages is driven by consumer tastes and demographics. The profitability of individual companies depends on effective marketing. Large manufacturers have economies of scale in production and distribution, with average annual revenue per production worker close to US$1MM. Small companies can compete by producing new products, catering to local tastes, or selling at lower prices. Beverage Manufacture and Bottling Industry Forecast
The output of US soft drinks and ice manufacturing is forecast to grow at an annual compounded rate of 4.9% between 2008 and 2013. PepsiCo, Inc. (HQ) Chairman and CEO Indra K. Nooyi 700 Anderson Hill Rd. Purchase, NY 10577-1444 United States Phone: 914-253-2000 Fax: 914-253-2070 http://www.pepsico.com
PepsiCo Subsidiaries Frito-Lay North America The Gatorade Company Naked Juice Company
Sprint Nextel (S) Up-date 1
Last Look: July 29, 2009
February 8, 2010 Paul A. Ebeling, Jnr. Analyst Today, let’s look at Sprint Nextel (S), the USA’s #3 wireless carrier behind Verizon Wireless and AT&T, from a Technical POV. The overall indications, after Friday’s (February 5) market action, are Bearish: in the near term Neutral, mid-term Bearish, and long term Bearish. The recent candlestick analysis is Very Bullish.
**Chart by: http://www.stockta.com
Latest News and Opinion: Leap Wireless, Nokia, Ciena retreat http://www.marketwatch.com/story/leap-wireless-nokia-ciena-retreat-2010-02-05?siteid=yhoof
Friday’s Market Action Close 3.43
There is a Bullish Harami on February 5 and two Gaps open up on between November 9 and 16, 2009 2.86/3.33 , the near term resistance is 3.53, support at 3.29, and the 50 day (EMA) exponential moving average is 3.65. This is Sprint Nextel (S): the USA’s #3 wireless carrier behind Verizon Wireless and AT&T. Mobility in terms of subscribers. Sprint Nextel serves nearly 40 million customers with mobile voice, data, and Web services over its nationwide network. While the namesake brand is reserved for post-paid accounts, the company also offers pre-paid mobile access (mainly to the youth market) through its Boost Mobile subsidiary. Sprint Nextel also provides cellular access to other carriers on a wholesale basis. The company's smaller, legacy wireline business provides long-distance voice, Internet, and data network services primarily to corporate customers and other carrier.
Competitive Landscape Demand for wireless services is driven by consumer income. The profitability of individual companies depends on marketing and technological skill. Large companies have advantages in marketing and in delivering a comprehensive array of services nationally. Small companies can compete effectively by delivering economically attractive service packages tailored to niche groups regionally. The industry is capital intensive: average annual revenue per employee is about US$350,000. Wireless Telecommunications Services Industry Forecast The output of US paging, cellular, and other wireless telecommunications, which includes wireless telecommunications, is forecast to increase at an annual compounded rate of 4 percent between 2008 and 2013. Data Sourced: December 2008. Sprint Nextel Corp. (HQ) Daniel R. Hesse Chief Exec. Officer, President, & Director 6200 Sprint Parkway Overland Park, KS 66251 United States Phone: 800-829-0965 http://www.sprint.com
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