The Red Roadmaster’s US Market Monthly Re-cap + Stock Talk ™
20 April 2010
Date Line: Hong Kong (SAR) China
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Red’s Bull Alert:
US Stock enter another week with gains
Re-cap of the US Stock Market Action for the session ending 19 April 201 US Stocks rose in late trading Monday. The DJIA rose 73.39 pts, or 0.67%, to close at 11,092.05, the S&P 500 gained 5.39 pts, or 0.45%, to close at 1,197.52, and the NAS tallied up a minus 1.15 pts, or 0.05%, to end the session at 2,480.11. The NAS stayed just below the flat line as chip makers slid negative. The PHLX semiconductor index was down 1%. Goldman Sachs Group Inc is expected to report blow-out earnings Tuesday, its shares climbed 1.6% to US$163.32, as the dust settled to allow player to focus on earnings. Citigroup rose 7% to US$4.88/shr, as the bank reported in its best result since Y 2007, and the DJIA charged North to close on the high. Savvy Market Watchers said that some of the strength in the market was down to a report from Bloomberg that the US Securities and Exchange Commission split 3-2 along party lines to approve an enforcement case against Goldman Sachs, citing 2 people with knowledge of the vote. "The fact that the vote was close has been the proximate cause for the stock's rally. This means it wasn't a clear cut decision by the SEC," said Doug Kass, president of Seabreeze Partners Management in Palm Beach, Florida. A pullback by the "Greenback" boosted the afternoon's action, but the USD settled with a gain of less than 0.2% against the basket of currencies. Despite the USD weakness, commodities sold off a bit, and the CRB Commodity Index to fell 1.1%. Crude Oil prices settled 2.2% lower at US$81.45 on the day marking the 3rd straight losing day for Crude Oil prices.
Spot gold was up 0.2% at US$1,136.60 oz as of 0140 GMT, compared to New York's notional close of US$1,134.60 oz. US Gold futures for June delivery are up 0.1% to US$1,137.00 oz, compared with Monday's US$1,135.80 on the COMEX division of the New York Merc. On the Economic Front: a gauge of the US economy's prospects rose more strongly than expected to a record high in March, pointing to a steady recovery. Advancing Sectors: Financials (+1.1%), Telecom (+1.1%), Health Care (+0.8%), Consumer Staples (+0.4%), Consumer Discretionary (+0.3%), Materials (0.2%), Tech (+0.2%), Utilities (+0.2%), Energy (+0.2%) Declining Sectors: (None) Unchanged: Industrials Volume and Breadth: About 10.77B/shrs traded on the NYSE, the AMEX and NAS, above last year's estimated daily average of 9.65B/shrs. Decliners outnumbered advancers on the NYSE by 1,681 to 1,324, and on the NAS, decliners beat advancers 1,672 to 1,009.
Market Indexes Technical Analysis Date
World Major Markets Shanghai
Updated 0700 BJT (April 19) Stocks to Watch Today
The ALLSTATE Corp. (ALL), Altria Group Inc. (MO), AT&T (ATT), and Honeywell International
The Allstate Corporation (ALL) Up-date 4
Last Look: April 1, 2010
April 21, 2010 Paul A. Ebeling, Jnr. Analyst Today, let’s look at The ALLSTATE Corp. (ALL), the large US insurance company, from a Technical POV. The overall indications, after Monday’s (April 19) market action, are Bullish: in the near term Very Bullish, mid-term Bullish, and long term Very Bullish. The recent candlestick analysis is: Very Bullish.
**Chart by: http://www.stockta.com
Latest News and Opinion: Allstate seeks to expand brand in Texas
http://sanantonio.bizjournals.com/sanantonio/stories/2010/04/12/daily18.html?ana=yfcpc Monday’s Market Action Close
34.19 + .34
There is a Bullish Engulfing Candle on April 19 and one Gap open up on February 16 at 29.59/29.85, the near term resistance is NIL, support at 34.12, and the 50 day (EMA) exponential moving average is 31.95 This is The Allstate Corporation (ALL): the company engages in the personal property and casualty insurance business, as well as in the life insurance, retirement, and investment products business in the United States and Canada. It operates in two segments: Allstate Protection and Allstate Financial. The Allstate Protection segment sells private passenger auto and homeowner’s insurance under ‘Encompass’ and ‘Deerbrook’ brand names primarily through agencies. Allstate Financial segment provides life insurance, retirement and investment products, and voluntary accident and health insurance products to individual and institutional customers. Its principal individual products comprise deferred, immediate, and indexed fixed annuities; interest-sensitive, traditional, and variable life insurance; and voluntary accident and health insurance. This segment markets its products through multiple intermediary distribution channels, including agencies and financial specialists, independent agents, banks, brokerdealers, and specialized structured settlement brokers. The Allstate Financial segment also offers various banking products and services consisting of certificates of deposit, money market accounts, savings accounts, checking accounts, and agency loans. The Allstate Corporation was founded in 1931.
Competitive Landscape Demand is driven by demographics and commercial transactions. Demand is also driven by legal or financial requirements. Consumers are usually required by states to buy auto insurance and by lenders to buy homeowners insurance, for example. The profitability of individual companies depends on effective marketing and on the ability to accurately estimate future payments. Large companies have big economies of scale in administration and in access to capital, as well as advertising and marketing. Small companies can compete successfully by specializing in particular products or industries. Average annual revenue per worker is around US$400,000, the industry is not labor-intensive. Insurance Carriers Industry Forecast The output of US insurance, which is an indicator for insurance carriers, is forecast to grow at an annual compounded rate of 1% between 2008 and 2013. Data Sourced: December 2009
Allstate Corp. (HQ) Thomas J. Wilson II, Chairman, Chief Exec. Officer and President,
2775 Sanders Road Northbrook, IL 60062 United States Phone: 847-402-5000 Fax: 847-402-2351
Altria Group Inc. (MO) Up-date 1
Last Look: March 2, 2009
April 20, 2010 Paul A. Ebeling, Jnr. Analyst Today, letâ€™s look at Altria Group Inc. (MO), the largest cigarette company in the USA , from a Technical POV. The overall indications, after Mondayâ€™s (April 19) market action, are Bullish: in the near term Neutral, mid-term Bullish, and long term Bullish. The recent Candle Stick Analysis is: Neutral.
**Chart by: http://www.stockta.com
Latest News and Opinion: Philip Morris USA Makes Master Settlement Agreement Payment of Approximately $3.6 billion http://finance.yahoo.com/news/Philip-Morris-USA-Makes-bw-2623153996.html?x=0&.v=1
Mondayâ€™s Market Action Close 15.44 +.32 Volume 27,386,600/shrs There is a Hammer on April 14 and are one Gap open up on November 9, 2009 at 18.61/18.68, the near term resistance is 20.93, support at 20.81, and the 50 day (EMA) exponential moving average is 20.49. This is Altria Group Inc. (MO): The company., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in the United States and internationally. The company, through Philip Morris USA, offers cigarettes. Altria Group, through John Middleton, manufactures machine-made large cigars; and through, Philip Morris Capital Corporation, holds a portfolio of leveraged and direct finance lease investments. In addition, the company has a 28.6% economic and voting interest in SABMiller plc, a brewer. It sells its tobacco products to wholesalers, large retail organizations that include chain stores, and the armed services, as well as distributors, retailers, and state-owned enterprises. The company was founded in 1919 and is based in Richmond, Virginia.
Competitive Landscape Demand is driven by discretionary consumer spending and awareness of the health effects of smoking. The profitability of individual companies depends on effective marketing. Large companies have advantages in economies of scale in manufacturing and product loyalty. Small companies can compete effectively through heavy discounting, clever branding and packaging, and by exploiting niche categories such as pipe tobacco and additive-free cigarettes. The industry is highly capital-intensive: average annual revenue per worker for a typical company is US$1.5MM. Tobacco Manufacture Industry Forecast The output of US tobacco products manufacturing is forecast to flatten with an annual compounded growth rate of 0 % between 2008 and 2013. Data Sourced: December 2009
Altria Group Inc. (HQ) Chairman and Chief Exec. Officer; Michael Szymanczyk 6601 West Broad Street Richmond, VA 23230 United States Phone: 804-274-2200 http://www.altria.com
Altria Subsidiaries Philip Morris USA Inc. Rothmans, Benson & Hedges Inc. UST Inc.
AT&T (ATT) Up-date 2
Last Look: April 9, 2010
April 20, 2010 Paul A. Ebeling, Jnr. Analyst Today, letâ€™s look at AT&T (ATT), the industry-leading provider of wire line voice communications services in the USA, from a Technical POV. The overall indications, after Mondayâ€™s (April 19) market action, are Bearish: in the near term Very Bearish, mid-term Neutral, and long term Neutral. The recent Candle Stick analysis is Bearish.
**Chart by: http://www.stockta.com
Latest News and Opinion: US Congressman Waxmanâ€™s War on American Business
http://www.cnbc.com/id/36117058?__source=yahoo|headline|quote|text|&par=yahoo Mondayâ€™s Market Action Close 26.16
There is a Hammer on April 15 are no Gaps open up or down on the Chart, the near term resistance is 26.23, support at 26.1, and the 50 day (EMA) exponential moving average is 26.40. This is AT&T Company Description (ATT): the company, through its subsidiaries, affiliates, and operating companies, holding company AT&T is the industry-leading provider of wire line voice communications services in the US. Customers in 22 states use AT&T-branded telephone, Internet, IPvoice, and digital video services; key markets include California, Illinois, and Texas. The company's corporate, government, and public sector clients use its extensive range of conferencing, data networking, managed network, and wholesale communications services. Subsidiary AT&T Mobility is the nation's second largest wireless carrier by both sales and subscriptions (after Verizon Wireless). It provides mobile voice and data services to about 77 million subscribers.
AT&T’s Business Challenges CRITICAL ISSUES Industry Depends Highly on Regulatory Decisions - The FCC regulates the interstate activities of telecom providers, including pricing and operations, while state public utility commissions (PUCs) regulate similar matters at the state level. Regulations affect most strategic decisions of telecom companies. Although the industry is moving toward deregulation and greater competition, pricing is likely to remain regulated. Demand Affected by Economic Growth - Demand for telecom services is affected by economic conditions, mainly because business customers provide a large portion of industry revenue. Consumers are also income-sensitive to the expensive new services telecom and cable providers offer. As a result, large telecom and cable companies had relatively flat revenue during the late 2000s recession. Industries Where AT&T Competes Telecommunications Services Fixed-line Voice Services Providers Local Exchange Carriers(primary) Data Services Internet & Online Services Providers Wireless Communications Services
AT&T (HQ) Randall L. Stephenson, Chairman, President, and CEO
208 S. Akard St. Dallas, TX 75202-2233 United States Phone: 210-821-4105 http://www.att.com AT&T Subsidiaries
AT&T Alascom AT&T Mobility LLC Ingenio, Inc.
Honeywell International Inc. (HON) Up-date 3 Last Look:October 23, 2009 April 20, 2010
Paul A. Ebeling, Jnr. Analyst Today, let’s look at Honeywell International Inc. (HON), a worldwide diversified technology and manufacturing company, from a Technical POV. The overall indications, after Monday’s (April 19) market action, are Bullish, in the near term Neutral, in the mid-term Bullish, and long term Bullish. The recent Candle Stick analysis is: Neutral
**Chart by: http://www.stockta.com
Latest News and Opinion: Honeywell Bags China Aviation Contract http://finance.yahoo.com/news/Honeywell-Bags-China-Aviation-zacks-864336535.html?x=0&.v=1
Mondayâ€™s Market Action Close
There are three Gaps open up between November 4, 2009 and March 5, 2010 at 36.13/41.23, the near term resistance is 46.36, support at 45.51, and the 50 day (EMA) exponential moving average is 43.35. This is Honeywell International Inc. (HON): The company operates in four segments: Aerospace, Automation and Control Solutions, Specialty Materials, and Transportation Systems. The Aerospace segment provides turbine propulsion engines, auxiliary power units, environmental control systems, electric power systems, engine systems and accessories, avionics systems, aircraft and obstruction lighting systems, inertial sensor systems, control products, space products and subsystems, management and technical services, and landing systems for aircraft manufacturers, airlines, business and general aviation, military, space, and airport operations. The Automation and Control Solutions segment offers environmental and combustion controls; sensing controls; security and life safety products and services; process automation products and solutions; and building solutions and services for homes, buildings, and
industrial facilities. The Specialty Materials segment provides resins and chemicals, hydrofluoric acid, fluorocarbons, fluorine specialties, nuclear services, research and fine chemicals, performance chemicals, imaging chemicals, chemical processing sealants, fibers and composites, specialty films, specialty additives, electronic chemicals, catalysts, adsorbents, and specialties for various applications in the refining, petrochemical, automotive, healthcare, agricultural, packaging, refrigeration, appliance, housing, semiconductor, wax, and adhesives segments, as well as offers process technology and equipment for the petrochemical and refining industries. The Transportation Systems segment manufactures charge-air systems; thermal systems; aftermarket filters, spark plugs, electronic components, and car care products; and brake hard parts and other friction materials for passenger cars and commercial vehicles industry. Honeywell International was founded in 1920. 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 7% between 2008 and 2013. Data Sourced: December 2008
Honeywell International Inc. (HQ) David M. Cote J.D. Chairman and Chief Exec. Office 101 Columbia Road PO Box 4000 Morristown, NJ 07962-2497 United States Phone: 973-455-2000 Fax: 973-455-4807 http://www.honeywell.com
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Published on Apr 20, 2010
Paul Ebeling on The ALLSTATE Corp. (ALL), Altria Group Inc. (MO), AT&T (ATT), and Honeywell International Inc. (HON)