The Red Roadmaster’s US Market Monthly Re-cap + Stock Talk ™
7 April 2010
Date Line: Hong Kong (SAR)
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Red’s Bull Alert:
Tuesday, the S&P 500 hit an 18 month intra-day high at 1,191.80,
and the NAS touched a 19 month intra-day high at 2,443.50.
Re-cap of the US Stock Market Action for the session ending 6 April 2010
S&P and NAS lead by banks, Fed minutes; DJIA off a bit...
The FMOC minutes suggested the central bank could keep interest rates ultra low longer than investors have anticipated if the economy worsens. Lower interest rates support financial shares, which have been at the core of the market's year long rally. The three major US stock indexes moved in a tight range, but looked up a bit after the release of the Fed minutes at 2 p.m. Tuesday The DJIA closed off 3.56 pts, or 0.03%, to end at 10,969.99, but the S&P 500 gained 2.00 pts, or 0.17%, to close at 1,189.44,the NAS tallied up a + 7.28 pts, or 0.30%, to end the session at 2,436.81. The NAS received support from Amazon.com, up 3.1% at US$135.56. The launch of Apple Inc's iPad has stirred optimism the device could expand the market for e-publishing, including Amazon.com's Kindle. Home builders' stocks slid as rising Treasury yields raised worries about higher mortgage rates, while KB Home fell 2.8% to US$16.51 after Credit Suisse cut its rating on the company's stock to "neutral" from "outperform."
Volume and Breadth: About 7.44B/shrs traded on the NYSE, the AMEX and NAS, below last year's estimated daily average of 9.65B/shr. Advancers outnumbered decliners on the NYSE by17 to 13, and on the NAS 5 stocks rose for each 4 that fell.
Market Indexes Technical Analysis Date
Stocks to W atch Today
Bank of America (BAC), JP Morgan Chase (JPM), PNC Financial Services Group Inc. (PNC), and Zions Bankcorporation (ZION)
Bank of America (BAC) Up-date 61
Last Look: March 11, 2010
April 7, 2010
Paul A. Ebeling, Jnr. Analyst Today let’s look at Bank of America (BAC), the USA’s big brand bank, from a Technical POV. The overall indications, after Tuesday’s (April 6) market action are, overall Bullish : in the near term Bullish , mid-term, Neutral , and long term Very Bullish . The recent Candle Stick analysis i s: Bearish .
**Chart by: http://www.stockta.com
Latest News and Opinion: Check the Real Estate: It's Time to Delve In http://online.wsj.com/article/SB10001424052702304172404575167971729724454.html? ru=yahoo&mod=yahoo_hs Tuesdayâ€™s Market Action
There is a DOJI on April 1, and one Gap open up on February 16 at 14.54/14.62,the near term resistance is NIL, support at 18.34, and the 50 day (EMA) exponential moving average is 16.77. This is Bank of America (BAC): This Company has operations in 32 states, the District of Colombia and 44 foreign countries. In the US it has more than 6,000 retail banking centers and 18,500 ATMâ€™s. Two key areas of business for this company are Global Consumer and Small Business Banking. Global Corporate and Investment Banking provide comprehensive financial solutions to their institutional clients. Global Wealth and Investment Management offers banking and investment services to more than 3 million individual and institutional customers World Wide. Recent Major developments have afforded the opportunity to purchase various marquee businesses such as Countrywide Financial, LaSalle Bank, U.S. Trust Corp, MBNA, and FleetBoston. Acquiring of these businesses will provide BAC a strong presence in their mutually respective core markets.
Competitive Landscape Leveraged loans, collateralized debt obligations and subprime-related assets will continue to be a source of uncertainty for the entire sector. Government intervention has played a role in strengthening bank balance sheets and consumer confidence. The government recently released a framework for the purchase of the aforementioned toxic assets. The industry is heavily tied to the extension of credit to credit worthy consumers. As deterioration in consumer based businesses continues in the US coupled with tighter lending standards, banks will find it difficult to identify lucrative investment opportunities.
Bank of America (HQ) Chairman and Chief Director: Walter E Massey 100 North Tryon St. 18th Fl Charlotte, NC 28255 United States Phone: 704-386-5681 Fax: 704-356-6699 http://www.BankofAmerica.com
JP Morgan Chase & Co (JPM) Up-date 23
Last Look: February 11,
2010 April 7, 2010
Paul A. Ebeling, Jr. Analyst Today letâ€™s look at JP Morgan Chase (JPM), the # 3 financial services firm in the USA from a Technical POV. The overall indications, after Tuesdayâ€™s (April 6) market action, are Neutral: in the near term Neutral , mid-term Bullish , and long term Neutral . The r ecent Candle Stick Analysis is: Very Bearish .
**Chart by: http://www.stockta.com Latest News and Opinion: Mr. Dimon Goes to Washington http://online.wsj.com/article/SB10001424052748703416204575145743093039972.html? ru=yahoo&mod=yahoo_hs
Tu esdayâ€™s Market Action Close
There is a Dragon Fly DOJI on April 5 are no Gaps open up on the Chart, the near term resistance is 47.16, support at 45.15, and the 50 day (EMA) exponential moving average is 42.89. This is JP Morgan Chase & Company (JPM): JPM is the #3 financial services firm in the USA behind Citi and Bank of America with more than 3,000 bank branches and growing. It is also among the nation's top mortgage lenders, automobile loan writers, and credit card issuers. JPM is also into investment banking and asset management. The company's subsidiaries include JPMorgan Private Bank and institutional investment manager JPMorgan Asset Management with US$1.6T in assets under management. In 2008 JPMorgan Chase bought Bear Stearns and Washington Mutual.
The Competitive Landscape 6
Demand for banking services in the USA is closely tied to economic activity and the level of interest rates. The profitability of individual banks depends on their marketing abilities, efficient operations, and good risk management. Large economies of scale exist in some segments of the banking industry, which has encouraged industry consolidation. Smaller banks can compete successfully in segments where customer service or knowledge of the local market is more important. The industry is capital intensive and highly automated: annual revenue per employee is about US$300,000. Banks and Credit Unions Industry Forecast The output of banks and credit unions in the USA is forecast to grow at an annual compounded rate of 5.1% 2008 and 2013. JP Morgan Chase & Company (HQ) Chairman, President, and CEO James (Jamie) Dimon
270 Park Ave. New York, NY 10017 United States Phone: 212-270-6000 Fax: 212-270-1648 http://www.jpmorganchase.com
JPMorgan Chase Subsidiaries Bear Stearns Merchant Banking Bear, Stearns Securities Corp. Bear Wagner Specialists LLC Chase Co (formally Washington Mutual)
PNC Financial Services Group Inc. (PNC) Up-date 2 Last Look: May 6, 2009 April 7, 2010 Paul A. Ebeling, Jnr. Analyst Today, letâ€™s look at PNC Financial Services Group Inc. (PNC) , the large US retail banking group, from a Technical POV. The overall analysis after Tuesdayâ€™s (April 6) market action is Bullish: in the near term Neutral , mid-term Bullish , and long term Bullish . The recent Candle Stick analysis is: Very Bearish
**Chart by: http://www.stockta.com
Latest News and Opinion: PNC Financial Services Group Earnings Conference Call (Q1 2010) http://biz.yahoo.com/cc/5/112275.html
Tuesdayâ€™s Market Action Close 62.58
There is a Bearish Doji Star on April 1 and are two Gaps open up on October 22, 2009 and March 5, 2010 at 46.46/54.32; the near term resistance is 62.86, support at 61.03, and the 50 day (EMA) exponential moving average is 58.85. This is The PNC Financial Services Group, Inc (PNC). The Company operated a diversified financial services company in the United States. It offers retail banking, corporate and institutional banking, asset management, and global fund processing services. The retail banking provides deposit, lending, brokerage, trust, investment management, and cash management services to consumer and small business customers. The corporate and institutional banking offers lending, treasury management, and capital market products and services to mid-sized corporations, government entities, and large corporations. Its lending products include secured and unsecured loans, letters of credit, and equipment leases; treasury management services comprise cash and investment management, receivables management, disbursement services, funds transfer services, information reporting, and global trade services; and capital markets-related products and services include foreign exchange, derivatives, loan
syndications, mergers and acquisitions advisory services to middle-market companies, securities underwriting, and securities sales and trading. The company also provides commercial loan servicing, real estate advisory, and technology solutions for the commercial real estate finance industry. It manages assets on behalf of institutional and individual investors worldwide through various equity, fixed income, cash management, and alternative investment accounts and funds, as well as provides investment system outsourcing, risk management, and financial advisory services. In addition, the company offers processing, technology, and business solutions for the investment industry worldwide. It serves customers in Pennsylvania, New Jersey, Washington, DC, Maryland, Virginia, Ohio, Kentucky, and Delaware. As of December 31, 2007, the company operated 1,109 branch offices and 3,900 automated teller machines. The PNC Financial Services Group was founded in 1922 and is based in Pittsburgh, Pennsylvania.
Competitive Landscape Demand for banking services is closely tied to economic activity and the level of interest rates. The profitability of individual banks depends on marketing skills, efficient operations, and good risk management. Large economies of scale exist in some segments of the industry, which has encouraged industry consolidation. Smaller banks can compete successfully in segments where customer service or knowledge of the local market is more important. The industry is capital-intensive and highly automated: annual revenue per employee is close to US$300,000. Banks and Credit Unions Industry Forecast The output of US and international banks and credit unions is forecast to grow at an annual compounded rate of 1% between 2008 and 2013. Data Sourced: December 2009 PNC Financial Services Group Inc. (HQ) Chairman, Chief Exec. Officer: James E. Rohr One PNC Plaza 249 Fifth Avenue Pittsburgh, PA 15222-2707 United States Phone: 412-762-2000 Fax: 412-762-7829
PNC Financial Subsidiaries BlackRock, Inc. Harris Williams LLC J.J.B. Hilliard, W.L. Lyons, LLC.
Zions Bankcorporation (ZION) Up-date 4
January 27, 2010 April 7, 2010 Paul A. Ebeling, Jnr. Analyst Today, letâ€™s look at Zions Bankcorp oration (ZION), the US western Multibank holding company, from a Technical POV. The overall indication s, after Tuesdayâ€™s (April 6) market action, are Bullish : in the near term Bullish , mid-term Bullish , and long term Bullish . The recent Candle Stick analysis is: Neutral
**Chart by: http://www.stockta.com
Latest News and Opinion: Zions Bancorp asked to do more for gays, lesbians http://finance.yahoo.com/news/Zions-Bancorp-asked-to-do-apf-2150325723.html?x=0&.v=1
Tuesdayâ€™s Market Action
Volume 8, 488,800/shrs
There is a Bullish Engulfing Candle on March 31 an two Gaps open up between March 10 and April 5, 2010 at 19.40/22.24, the near term resistance is 25.81, support at 23.21, and the 50 day (EMA) exponential moving average is 20.06. This is Zions Bankcorporation (ZION): Multibank holding company Zions Bancorporation has a strong presence in the US West. It operates eight bank subsidiaries with a total of more than 500 branches in 10 western and southwestern states. The banks and their subsidiaries provide commercial and retail banking and mortgage lending products. They also offer personal banking fare, including lending products like home mortgages, bank cards, and home equity lines of credit ; deposit products such as checking and savings accounts and time certificates; and trust and wealth management services. The company is also a leading Small Business Administration (SBA) and agricultural lender.
Competitive Landscape Demand for banking services is closely tied to economic activity and the level of interest rates. The profitability of individual banks depends on marketing skills, efficient operations, and good risk management. Large economies of scale exist in some segments of the industry, which has encouraged industry consolidation. Smaller banks can compete successfully in segments where customer service or knowledge of the local market is more important. The industry is capital-intensive and highly automated: annual revenue per employee is close to US$300,000. Banks and Credit Unions Industry Forecast The output of US banks and credit unions is forecast to grow at an annual compounded rate of 1% between 2008 and 2013. Data Sourced: December 2009
Zions Bancorp. (HQ) Harris H. Simmons Chairman, Chief Exec. Officer & President One South Main Suite 1500 Salt Lake City, UT 84133-1109 United States Phone: 801-524-4787 Fax: 801-524-2129 http://www.zionsbancorporation.com
Zions Bancorporation Subsidiaries Amegy Corporation California Bank & Trust The Commerce Bank of Oregon
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Published on Apr 7, 2010
Paul Ebeling on Bank of America (BAC), JP Morgan Chase (JPM), PNC Financial Services Group Inc. (PNC), and Zions Bankcorporation (ZION)