The Red Roadmaster’s US Market Monthly Re-cap + Stock Talk ™
31 March 2010
Date Line: Hong Kong (SAR) China
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Red’s Bull Alert: The S&P 500 is now up 73.4% from the March 9, 2009 bottom, and on track for a 4th straight quarterly gain.
Re-cap of the US Stock Market Action for the session ending 30 March 2010 Today is the last trading day in Q-1, the S&P 500 is up 5.2% so far on the Q, the DJIA is up 4.6% and the NAS is up 6.2% The Industrials are the best-performing S&P 500 sector this Q. US stocks rose in light trading Tuesday on data showing the economy is in stabilization mode. Tuesday's session had light volume as did Monday's, as Passover and Easter are taking players away from the market. The DJIA closed up 11.56 pts, or 0.11%, at 10,907.42 (searching for 11,000), the S&P 500 added 0.05 of a pt, or 0.00%, to close at 1,173.27, the NAS tallied up a + 6.33 pts, or 0.26% to end the session at 2,410.69. Shares of 3M Co. closed up 3.6% to US$84.28/shr and contributed the most to the DJIA's advance. A KPMG study showed US manufacturing executives were more upbeat on the recovery than their European Union colleagues. After the Bell, Honeywell International Inc, a big manufacturer, raised its Q-1 profit outlook, sending its stock up 2.3% to US$45.96/shr. Financials kept the S&P 500 under pressure all session long on Tuesday, with Bank of America shares closing off down 1.6% at US$17.76/shr. On the Economic Front: US consumer confidence rebounded in March, as optimism about the labor market increased, the Conference Board said. Another report showed that January home prices rose for the 8th month running Friday's release of the US gov's non-farm payrolls report for March will likely give US stocks a new catalyst to touch up against 18 month highs on the expectation that the labor market had a significant turnaround last month, according to economists.
March non-farm payrolls are set for release Friday morning even though the stock market will be shut for the Good Friday holiday. Advancing Sectors: Tech (+0.5%), Materials (+0.2%), Industrials (+0.2%), Health Care (+0.1%), Consumer Staples (+0.1%) Declining Sectors: Financials (-0.7%), Telecom (-0.4%), Utilities (-0.2%) Unchanged: Energy, Consumer Discretionary Volume and Breadth: About 7.34B/shrs traded on the NYSE, AMEX and the NAS, below last year's estimated daily average of 9.65B/shrs. Advancers on the NYSE beat decliners by 8 to 7, and on the NAS, about 5 stocks rose for each 4 that fell.
Market Indexes Technical Analysis Date
Stocks to Watch Today Emerson Electric Co. (EMR), 3M Company (MMM), United Technologies Corporation (UTX), and Verizon Communications Inc. (VZ).
Emerson Electric Co. (EMR) Up-date 2
Last Look: February 3, 2010
March 31, 2010 Paul A. Ebeling, Jnr. Analyst Today let’s look at Emerson Electric Co. (EMR), known as just Emerson, from a Technical POV. The overall analysis after Tuesday’s (March 30) market action is Very Bullish, in the near term Bullish, midterm Very Bullish, and long term Very Bullish. The recent Candle Stick analysis is: Neutral
**Chart by: http://www.stockta.com
Latest News and Opinion: Emerson, LUKOIL Sign Multi-Year Agreement To Modernize Automation At Refining And Petrochemical Facilities http://finance.yahoo.com/news/Emerson-LUKOIL-Sign-MultiYear-bw-1556773353.html?x=0&.v=1
Tuesdayâ€™s Market Action
Close 50.81 + .98
There is a DOJI on March 25 two Gaps open up on February 2 and 16, 2010 at 42.56/46.39, the near term resistance is NIL, support at 50.63, and the 50 day (EMA) exponential moving average is 47.14. This is. Emerson Electric Co. (EMR): The Company, known as just Emerson, makes a host of electrical, electromechanical, and electronic products, many of which are used to control gases, liquids, and electricity. Emerson pursues an active, aggressive acquisition strategy (with select divestitures along the way) in building up its global business with dozens of subsidiaries. The company gathers its 60-plus business units and divisions under eight Emerson Brands. The USA accounts for about half of sales. As old Ralph Waldo once said, "Make yourself necessary to somebody," and Emerson Electric follows that adage.
Competitive Landscape Industrial and manufacturing companies drive demand. The profitability of individual companies depends on efficient production. Small companies can compete by specializing. While larger companies, like GE, produce mainly a standard line of products, smaller companies are more likely to adapt products for customers' special needs. The industry is fairly automated: average annual revenue per worker is close to US$200,000. Motor, Generator, Pump, and Compressor Mfg Industry Forecast The output of US motors, compressors, pumps, and generators is forecast to grow at an annual compounded rate of 2% between 2008 and 2013. Data Sourced: December 2009
Emerson Electric Co. (HQ) David N. Farr Chairman, Chief Exec. Officer, President 8000 West Florissant Avenue St. Louis, MO 63136 United States Phone: 314-553-2000 Fax: 314-553-3527 http://www.emersonelectric.com
3M Company (MMM) Up-date 5
Last Look: February 10, 2010 4
March 31, 2010 Paul A. Ebeling, Jnr. Analyst Today let’s look at the 3M Company (MMM), the leader in tape and adhesive manufacturing, from a Technical POV. The overall indications, after Tuesday’s (March 30) market action, are Very Bullish: in the near term Very Bullish, mid-term Bullish:, and long term Neutral. The recent Candle Stick analysis is: Neutral
**Chart by: http://www.stockta.com
Latest News and Opinion: Calls of The Day: Freeport McMoRan, 3M
http://www.cnbc.com/id/36103774?__source=yahoo|headline|quote|text|&par=yahoo Tuesday’s Market Action Close 84.28 + 2.92
There are two Gap s open up on March 1 and 30 at 80.33/82.24, the near term resistance is 85.12, support at 84.13 and the 50 day (EMA) exponential moving average is 8i.24. This is the 3M Company (MMM): 3M makes everything from masking tape to asthma inhalers. The company has six operating segments: display/graphics, specialty film, traffic control materials; health care (dental and medical supplies, and health IT); safety, security, and protection (commercial care, occupational health and safety products); electro and communications (connecting, splicing, and insulating products); industrial and transportation (specialty materials, tapes, and adhesives); and consumer and office. Well-known brands include Scotchgard fabric protectors, Post-it Notes, Scotch-Brite scouring products, and Scotch tapes. Sales outside the US account for about two-thirds of 3M's sales. Top 3M Competitors Avery Dennison Johnson & Johnson
The 3M Company (HQ) Chairman, President, and CEO George W. Buckley 3M Center St. Paul, MN 55144 United States Phone: 651-733-1110 Fax: 651-733-9973 Toll Free: 800-364-3577 http://www.mmm.com
3M Subsidiaries 3M Digital Signage 3M Health Care 3M Health Care Ltd. (UK)
United Technologies Corporation (UTX) Up-date 4 Last Look: March 14, 2010 6
March 31, 2010 Paul A. Ebeling, Jnr. Analyst Today, let’s look at United Technologies Corporation (UTX), the huge US big brand conglomerate, from a Technical POV. The overall analysis after Tuesday’s (March 30) market action is Neutral: in the near term Bullish,, mid-term Bullish, and long term Neutral. The recent Candle Stick analysis is: Bearish
**Chart by: http://www.stockta.com
Latest News and Opinion: Boeing, United Technologies Rise to Highs
http://www.thestreet.com/_yahoo/story/10713264/1/boeing-united-technologies-rise-to-highs.html? cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA Tuesday’s Market Action
Close 74.13 + .13
Volume 2,876,000/shrs 7
There is a inverted Hammer on March 26 and two Gaps open up on November 4, 2009 and March 19, 2010 at 60.35/72.72, the near term resistance is 74.81, support at 72.67, and the 50 day (EMA) exponential moving average is 70.61. This is United Technologies Corporation (UTX): United Technologies lifts you up and cools you off with it portfolio of well know brands: Carrier, Otis, Pratt & Whitney, and Sikorsky. UTC makes building systems and aerospace products. Carrier is the world's largest maker of heating and air-conditioning units. Otis is the #1 elevator manufacturer; Hamilton Sundstrand produces engine controls, environmental systems, propellers, and other flight systems; Pratt & Whitney makes engines for both commercial and military aircraft; and Sikorsky makes helicopters. The UTC Fire & Security segment is made up of what were Chubb and Kidde plus UTC Power makes fuel cells for commercial, transportation, and space applications, among other products.
The Competitive Landscape Demand is driven by the US military budget and the overall economic climate, which affects airline traffic and demand for new commercial aircraft. The profitability of individual companies depends on technical expertise and the ability to accurately price long-term contracts. Large companies enjoy economies of scale in design, manufacturing, and purchasing. Small companies can compete effectively by concentrating on selected components and parts manufacturing for particular prime contractors. Increasingly, small companies are developing system integration capabilities as large firms outsource more aspects of contracts. Production of aircraft and major aircraft components is highly automated: average revenue per employee is over US$300,000. Aerospace Products and Parts Manufacture Industry Forecast
The output of US aerospace products is forecast to grow at an annual compounded rate of 6.8 % between 2008 and 2013. United Technologies Corporation (HQ) Chairman
President, CEO, and Director Louis R. ChĂŞnevert
1 Financial Plaza Hartford, CT 06103 United States
Phone: 860-728-7000 Fax: 860-565-5400 http://www.utc.com United Technologies Subsidiaries
Carrier Corporation Forney Corporation Hamilton Sundstrand Corporation
Verizon Communications Inc. (VZ) Up-date 4
Last Look: December 9 ,2009 8
March 31, 2010 Paul A. Ebeling, Jnr. Analyst Today letâ€™s look at Verizon Communications Inc. (VZ), the 2nd largest US telecommunications services provider, from a Technical POV. The overall indications, after Tuesdayâ€™s (March 30) market action, are Neutral: in the near term Bullish,, mid-term Neutral, and long term Neutral. The recent Candle Stick analysis is: Bearish
**Chart by: http://www.stockta.com
Latest News and Opinion: Freeing the iPad from AT&T Boingo, Sprint, and other wireless service providers plan to court iPad owners with data-plan alternatives
http://www.businessweek.com/technology/content/mar2010/tc20100330_074192.htm? campaign_id=yhoo Tuesdayâ€™s Market Action Close 31.23
There is a Bullish Harami on March 26, and one Gaps open up on March 30 at 30.60/31.02 the near term resistance is 32.73, support at 31.04, and the 50 day (EMA) exponential moving average is 30.13 This is Verizon Communications Inc. (VZ): The Company provides communication services in the United States and internationally. It operates in two segments, Wireline and Domestic Wireless. The Wireline segment provides voice, Internet access, broadband video and data, next generation Internet protocol (IP) network services, network access, and long distance services to consumers, carriers, businesses, and government customers. It operates a fiber-to-the-premises (FTTP) network under the FiOS service mark that offers bandwidth, and designed to handle future broadband and video applications. As of December 31, 2008, this segmentâ€™s wireline network included approximately 36,161,000 wireline access lines, 8,673,000 broadband connections, and 1,918,000 FiOS TV customers. The Domestic Wireless segment offers in wireless voice and data products, and other value-added services, as well as sells equipment. This segment serves approximately 80 million customers. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000.
Competitive Landscape Demand is driven by technological innovation and by growth in business activity. The profitability of individual companies depends on efficient operations and good marketing. Large companies have big economies of scale in providing a highly automated service to large numbers of customers, and have the financial resources required to build and maintain a large network. Smaller companies can compete effectively only in small markets or by providing specialty services. Because of the large degree of automation, average revenue per employee is a high US$300,000. Telecommunication Services Industry Forecast The output of US telecommunications is forecast to grow at an annual compounded rate of 4 % between 2008 and 2013. Data Sourced: December 2009
Verizon Communications Inc. (HQ) Chairman and Chief Exec. Officer: Ivan G. Seidenberg 140 West Street New York, NY 10007 United States Phone: 212-395-1000 Web Site: http://www.verizon.com
Verizon Subsidiaries Alltel Corporation Cellco Partnership Idearc Inc. Disclaimer
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Paul Ebeling on Emerson Electric Co. (EMR), 3M Company (MMM), United Technologies Corporation (UTX), and Verizon Communications Inc. (VZ).