The Red Roadmasterâ€™s US Market Re-cap + Stock Talk â„˘
October 6, 2009
Date Line: Los Angeles, CA
US Stocks charged North Monday snapping a 4 day losing streak
Re-cap of the US Stock Market Action for the Day ending October 5, 2009 The financial lead the Charge coming in #1 on the S&P 500 index on the day. Goldie upgraded Wells Fargo to "buy," and its shares rose to US$28.09. The KBW Banks index .BKX advanced 3.2%, and the S&P Financial index .GSPF added 3.3%. Savvy market observers said investors are looking for strong Q-3 earnings reports that begin this Wednesday with the release of Alcoa, Inc's Q-3 report. Shares of Alcoa rose 4.7% to US$13.42. In the Q-2 reporting period, more than 70% of Standard & Poor's 500 companies beat expectations lighting up a sharp rally in stocks. The DJIA was up 112.08 pts, or 1.18%, to close at 9,599.75, the S&P 500 closed up 15.25 pts, or 1.49%, at 1,040.46, and the NAS tallied a + 20.04 pts, or 0.98%, to close the session at 2,068.15. JPMorgan Chase & Co. closed + 4.6% at US$43.80; it was the top gainer on the DJIA (see Stock Talk below) Volume and Breadth: trade was below average on the NYSE, with 1.12B/shrs changing hands, below last year's estimated daily average of 1.49B/shrs, and on the NAS, about 2.19b/shrs traded, also below last year's daily average of 2.28B/shrs. Advancers outnumbered decliners on the NYSE by a ratio of 5 to 1, and advancing stocks beat decliners on the NAS by about 19 to 7. Stocks to Watch Today
Bank of America (BAC), Citigroup, Inc.(C), General Electric Company (GE), JP Morgan Chase (JPM), and Wells Fargo & Company (WFC)
Bank of America (BAC) Up-date 58
Last Look: September 4, 2009
October 6, 2009
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 Monday’s (October 5, 2009) market action are, overall 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: Pay Czar Targets Salary Cuts Top Earners at Firms Getting Aid Would See Compensation Shift From Cash to Stock
http://online.wsj.com/article/SB125478783753066235.html?ru=yahoo&mod=yahoo_hs Mondayâ€™s Market Action Close
There are three Gaps open up between July 30 and October 5, 2009 at 13.75/16.55, the near term resistance is 17.30, support at 16.74, and the 50 day (EMA) exponential moving average is 16.23. 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
Citigroup, Inc. (C) Up-date 52
Last Look: September 23, 2009
October 6, 2009 Paul A. Ebeling, Jnr. Analyst Today letâ€™s look at Citigroup, Inc.(C), perhaps the largest financial services company in the world, from a Technical POV. The overall indications, after Tuesdayâ€™s (September 22, 2009) market action, are Bullish: in the near term Neutral, mid-term Neutral, and long term Bullish. The recent Candle Stick analysis is: Neutral.
**Chart by: http://www.stockta.com
Latest News: Pay Czar Targets Salary Cuts http://online.wsj.com/article/SB125478783753066235.html?ru=yahoo&mod=yahoo_hs
Mondayâ€™s Market Action Close 4.67
There is a Hammer on September 30, and one Gap open up on August 5, 2009 at 3.25/3.29 the near term resistance is 4.70, support 4.57, and the 50 day (EMA) exponential moving average is 4.26. This is Citigroup, Inc. (C): Citi is perhaps the largest financial services firms on the planet, Citigroup, AKA Citi, has about 3,000 bank branches and consumer finance offices in the US and Canada, + more than 2,000 additional locations in a 100 other countries. Citi is the first US bank to come with more than US$1T in assets, Citi offers deposits and loans, mainly through Citibank, investment banking, brokerage, wealth management, alternative investments, and other financial services. Former CEO Chuck Prince resigned in 2007 as Citi deals with some $60 billion in write downs and losses on mortgagerelated securities and other investments. Robert Rubin, Key Advisor/Director recently announced his resignation. The Competitive Landscape Demand for banking services is tied to economic activity and interest rates levels. The profitability of individual banks depends on marketing, efficient operations, and competent risk management. Large economies of scale exist in some segments of the industry, which has experienced 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 US banks and credit unions growth forecast remains a question Industries Where Citigroup Competes Banking Money Center Banks (primary) Financial Services Asset Management Investment Banking Lending Citigroup, Inc. (HQ) Chief Exec. Officer, Director Vikram S. Pandit 399 Park Ave. New York, NY 10043 United States Phone: 212-559-1000 Toll Free: 800-285-3000 http://www.citigroup.com
Citigroup Subsidiaries Grupo Financiero Banamex, S.A. de C.V. Bank Handlowy w Warszawie S.A. Citi Commerce Solutions
General Electric Company (GE) Up-date 42
Last Look: September 29, 2009
October 6, 2009 Paul A. Ebeling, Jnr. Analyst Today let’s look at General Electric Company (GE), a company whose innovative leadership has played a major part in shaping the modern world and how we live and enjoy it, from a Technical POV. The overall analysis after Monday’s (October 5, 2009) market action is 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: GE ties with NBC come under pressure http://www.ft.com/cms/s/0/6c8df7d8-b202-11de-a271-00144feab49a.html? referrer_id=yahoofinance&ft_ref=yahoo1&segid=03058&nclick_check=1
Monday’s Market Action Close 15.83
There are three Gaps open up between July 13 and September 8, 2009 at 10.85/14.36, the near term resistance is 15.98, support at 15.66, and the 50 day (EMA) exponential moving average is 14.90. This is the General Electric Company (GE): GE manufactures everything from turbines to TVs, from household appliances to power plants, General Electric has innovated businesses that have shaped the modern world and how we live and enjoy it. The company produces; aircraft engines, locomotives and other transportation equipment, kitchen and laundry appliances, lighting, electric distribution and control equipment, generators and turbines, and medical imaging equipment. GE is also one of the preeminent financial services companies in the US. Its General Electric Capital unit comprises commercial finance, consumer finance, aircraft leasing, and energy financial services, is its largest segment. Plus they own and operate the NBC television network.
Industries Where GE Competes Commercial Lending (primary) Aerospace & Defense Automotive & Transport Consumer Products Manufacturers GE Subsidiaries and Affiliates CFM International, S.A. SociĂŠtĂŠ Factofrance Fanuc GE CNC Europe S.A.
General Electric (HQ) Chairman and CEO Jeffrey R. (Jeff) Immelt 3135 Easton Tpke. Fairfield, CT 06828-0001 United States Phone: 203-373-2211 Fax: 203-373-3131
JP Morgan Chase & Company (JPM) Up-date 21 October 6, 2009
Last Look: May 29, 2009
Paul A. Ebeling, Jnr. Analyst Today let’s look at JP Morgan Chase (JPM), the # 3 financial services firm in the USA, from a Technical POV. The overall indications, after Monday’s (October 5, 2009) market action, are Neutral: in the near term Neutral, mid-term Bullish: and long term Neutral. The recent Candle Stick analysis is: Neutral.
**Chart by: http://www.stockta.com
Latest News: Stocks Jump Ahead of Earnings http://online.wsj.com/article/SB125474108817864243.html?ru=yahoo&mod=yahoo_hs Monday’s Market Action Close 43.80
There is a DOJI on September 29, and one Gap open up on Aug 3, 2009 at 38.65/38.99, the near term resistance is 44.38, support at 43.38, and the 50 day (EMA) exponential moving average is 42.02.
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 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)
Wells Fargo & Company (WFC) Up-date 27
Last Look: September 2, 2009
October 6, 2009 Paul A. Ebeling, Jnr. Analyst Today letâ€™s look at Wells Fargo & Company (WFC), the Western USA banking Giant, from a Technical POV. The overall indicators, after Mondayâ€™s (October 5, 2009) market action, are Bullish: in the near
term Neutral, mid-term Very Bullish, and long term Neutral. The recent Candle Stick analysis is: Neutral
**Chart by: http://www.stockta.com
Latest News: Goldman Sachs Lightning Bolt Sparks Rally http://www.minyanville.com/articles/stock+market-+economy-/index/a/24798/from/yahoo
Mondayâ€™s Market Action Close 28.09 + 1.81
There is a Homing Pigeon on Sept 29, and one Gap open up on October 5, 2009 at 26.69/27.34, the near term resistance is 28.17, support at 27.76, and the 50 day (EMA) exponential moving average is 27.22. This is Wells Fargo & Company (WFC): Wells Fargo & Company, through its subsidiaries, operates as a financial services company in the United States. It operates in three segments: Community Banking, Wholesale Banking, and Wells Fargo Financial. Community Banking segment offers deposit products, including checking accounts, savings deposits, market rate accounts, retirement accounts, time deposits, and debit cards; and loan products comprising lines of credit, equity lines and loans, equipment and
transportation loans, education loans, residential mortgage loans, and credit cards. This segment also provides receivables and inventory financing, equipment leases, real estate financing, small business financing, venture capital financing, cash management, payroll services, retirement plans, health savings accounts, merchant payment processing, and securities brokerage. Wholesale Banking segment provides a range of commercial, corporate, and real estate banking products and services, including commercial loans and lines of credit, letters of credit, asset-based lending, equipment leasing, mezzanine financing, high-yield debt, international trade facilities, foreign exchange services, treasury management, investment management, institutional fixed income sales, interest rate, commodity and equity risk management, online products, insurance, investment banking, and mortgage brokerage services. Wells Fargo Financial segment comprises consumer finance operations that make direct consumer and real estate loans to individuals and purchase sales finance contracts from retail merchants; and auto finance operations, which purchase sales finance contracts directly from auto dealers and make loans secured by autos. This segment also provides credit cards and lease, and other commercial financing services. As of December 31, 2007, the company operated 5,964 branches and 6,900 ATMs. Wells Fargo & Company was founded in 1852 and is headquartered in San Francisco, California.
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 5.1% between 2008 and 2013. Wells Fargo & Company (HQ) Chairman Richard M. Kovacevich 420 Montgomery Street San Francisco, CA 94104 United States Phone: 866-249-3302 Fax: 651-450-4033 http://www.wellsfargo.com
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