The Red Roadmasterâ€™s US Market Re-cap + Stock Talk â„˘
October 15, 2009
Date Line: Bangkok, Thailand
DJIA tops 10,000 for first time in a year.
Re-cap of the US Stock Market Action for the session ending October 14, 2009 The Bull Charged North today and the DJIA sliced into the psychological resistance at 10,000 for the 1st time since last October, as investors hailed the strong earnings reports from Intel Corp. and JPMorgan Chase & Co. The DJIA gained 134.45 pts, or 1.36%, to close at 10,005.51, the S&P 500 added 17.35 pts, or 1.62%, to end the session at 1,090.52, and the NAS tallied up + 27.97 pts, or 1.31%, to end the break thru day at 2,165.01. JPMorgan Chase, (covered in Stock Talk recently) is the 1st major bank to report Q-3 earnings, the report announced profit in Q-3 climbed to US$3.59B, beating analysts' estimates by almost 7 times. Intel, (covered in Stock Talk yesterday) the world's largest computer-chip maker, reported a smaller-than-expected decline in profit and sales after the Bell on Tuesday's closing bell. It also exceeded analysts' estimates and guided higher into 2010. These current reports and forward looks add to evidence that the global economy is recovering from the recent recession. The US$ slumped to 75.44 (heading to 72 IMO) a 14 month low in trading today, against a basket of six other major currencies, helping send Gold to record highs, and Crude Oil comfortably back over US$70.00 bbl. Note: The USD index baseline of 100.00 was set at its introduction in March 1973 and, since then, the index has climbed as high into the 160s and fallen as low as the 70s. Continued USD devaluation will force investors to purchase and stock Gold and Crude Oil to force up the prices of these two commodities, which are bought and sold in UD$s . Crude Oil futures are used an inflation guide by savvy market observers, and have risen to 7 week highs; the price has jumped 66% on the year. Crude Oil for November delivery has gained 88 cents to settle at US$74.15 bbl on the New York Merc. Crude Oil prices have risen in 4 straight sessions, and a barrel costs 4% more this week than it did last week. Volume and Breadth: Trade was moderate on the NYSE, with 1.35B/shrs changing hands, below last year's estimated daily average of 1.49 B/shrs, and on the leading NAS about 2.37B/srs traded, above last year's daily average of 2.28B/shrs. Advancers outnumbered decliners on the NYSE by 2,275 to 763, and advancing stocks beat decliners on the NAS by about 2,028 to 688.
Stocks to Watch Today
Amazon.com, Inc. (AMZN), Cisco Systems, Inc. (CSCO), General Electric Company (GE), JP Morgan Chase (JPM), and Sprint Nextel (S).
Amazon.com, Inc. (AMZN) Up-date 11
Last Look: July 23, 2009
October 14, 2009 Paul A. Ebeling, Jnr. Analyst Today let’s look at Amazon.com, Inc. (AMZN), the premier online (AKA World’s Biggest) marketer/seller, from a Technical POV. The overall indications, after Wednesday’s (October 14, 2009) market action, are: Bullish, in the near term Neutral, mid-term Bullish, and long term Bullish. The recent Candle Stick analysis is Bearish.
**Chart by: http://www.stockta.com
Latest News: Amazon.com approaches All-Time Highs http://seekingalpha.com/article/166506-apple-amazon-com-approach-all-time-highs?source=yahoo Wednesday’s Market Action Close
There is a Bearish Engulfing Candle on October 12 and three Gaps open up between September 16 and October 14, 2009 at 84.41/96.02, the near term resistance is 99.99, support is 95.10, and the 50 day (EMA) exponential moving average is 88.40. This is Amazon.com, Inc.(AMZN); Not too long ago, remember?, Jeff Bezos, Amazon.com’s founder/24% owner, opened the World’s biggest book store, since then Amazon.com has become the world’s biggest sell everything and all store, as the expansion pushed Amazon.com in multiple directions. The main web site www.amazon.com offers millions of books, music, DVDs, and videos, which account 60% + of company sales. Amazon.com also sells auto parts, toys, tools, electronics, home furnishings, apparel, health and beauty aids, prescription drugs, groceries, and lots of services like film processing, etc.. Amazon.com has been the model for Internet companies that put market share ahead of profits, and those huge profits led to acquisitions funded by rocketing market capitalization, begetting a model that is now focused on profits. AMZN is ranked #171 in FORTUNE 500 & #301 in FT Global 500. The Competition Amazon.com’s competitors are primarily in the Music, Video, Book & Entertainment Retail industry. Amazon.com also competes in the Apparel & Accessories Retail, Auto Parts Retail, and Camera & Optical Goods Retail sectors. Examples: Barns & Noble, Borders, Columbia House and eBay.
Amazon.com (HQ) Chairman, President, and CEO Jeffrey P. (Jeff) Bezos SVP and CFO Thomas J. (Tom) Szkutak 1200 12th Ave. South, Ste. 1200 Seattle, WA 98144-2734 United States (Map) Phone: 206-266-1000 http://www.amazon.com
Amazon.com Subsidiaries Amazon.co.uk Ltd Amazon.de GmbH Audible, Inc
Cisco Systems, Inc (CSCO) Up-date 11
Last Look: August 4, 2009
October 15, 2009 Paul A. Ebeling, Jnr. Analyst Today letâ€™s look at Cisco Systems, Inc. (CSCO), the backbone of the Internet, from a Technical POV. The overall indications, after Wednesdayâ€™s (October 14, 2009) market action, are overall Bullish, in the near term Very Bullish, mid-term Bullish, and long term Bulllish. The recent Candle Stick analysis is: Neutral.
**Chart by: http://www.stockta.com
Latest News: Cisco Powers Up I-Prize Innovation Contest http://blogs.wsj.com/venturecapital/2009/10/14/cisco-powers-up-i-prize-innovationcontest/?mod=yahoo_hs
Wednesdayâ€™s Market Action Close 24.38 + .49
There is a Bullish Engulfing Candle on October 9 and three Gap open up between July 15 and October 14, 2009 at 18.94/24.18 support at 24.20, the near term resistance is NIL, the 50 day exponential moving average at 22.54. This is Cisco Systems (CSCO): Cisco Systems routes packets and routs competitors with equal efficiency. The Company dominates the market for IP-based networking equipment, providing routers and switches used to direct data, voice, and video traffic. Some of their other products include remote access servers, IP telephony equipment, optical networking components, Internet conferencing systems, set-top boxes, and network service and security systems. Cisco sells its products primarily to large enterprises and telecommunications service providers, but it also markets products designed for small businesses and consumers through its Linksys division. If you are connected to the internet via a wireless network at home or in your office you likely have Linksys system. Note: The industry sector in which Cisco competes depends on purchases from businesses, telephone companies, cable companies, data communications providers, + TV and radio broadcasters.
Competitive Landscape Profitability for individual companies with in the sector is linked to technical innovation and the ability to secure high-volume contracts from large customers. Small companies can be successful if they make highly specialized products. There are large economies of scale in manufacturing standard products, but many products are specialized and produced in small manufacturing plants. Annual revenue per employee in a large plant varies from US$500,000 to US$1M. The output of US communication equipment manufacturing is forecast to grow at an annual compounded rate of 2 percent between 2007 and 2012. Cisco Systems, Inc. (HQ) John T. Chambers, Chairman and CEO 170 WEST TASMAN DR SAN JOSE CA 95134-1706 4085264000 Phone: 408-526-4000 Fax: 408-526-4100 www.cisco.com
General Electric Company (GE) Up-date 41
Last Look: July 31, 2009
October 15, 2009 Paul A. Ebeling, Jnr. Analyst Today letâ€™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 Wednesdayâ€™s (October 14, 2009) market action is Bullish: in the near term Bullish, midterm Bullish, and long term Bullish. The recent Candle Stick analysis is: Very Bullish
**Chart by: http://www.stockta.com
Latest News: Analysts look for signs of growth in GE's industrial businesses during Q-3 http://finance.yahoo.com/news/Earnings-Preview-General-apf-4074273069.html?x=0&.v=1
Wednesday’s Market Action Close 16.84 + .45 Volume 92,394,300/shrs There is a Bullish engulfing Candle on October 13 and four Gaps open up between July 13 and October 14, 2009 at 10.85/16.56, the near term resistance is 17.17, support at 16.52 and the 50 day (EMA) exponential moving average is 15.32. 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. Société 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 22
Last Look: October 6, 2009
October 15, 2009 Paul A. Ebeling, Jnr. 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 Wednesdayâ€™s (October 14, 2009) market action, are Neutral: in the near term Bullish, mid-term Neutral, and long term Neutral. The recent Candle Stick analysis is: Bullish.
**Chart by: http://www.stockta.com
Latest News: JPMorgan's $3.6 billion profit sets fast pace for rivals http://finance.yahoo.com/news/JPMorgans-36-billion-profit-rb-2321292358.html?x=0&.v=11
Wednesdayâ€™s Market Action Close 47.16
There is a DOJI on October 14, and three Gaps open up between Aug 3, and October 14, 2009 at 38.65/46.63, the near term resistance is 48.70, support at 46.11, and the 50 day (EMA) exponential moving average is 43.15. 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)
Sprint Nextel (S) Up-date 1
Last Look: July 29, 2009
October 15, 2009
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 Wednesday’s (October 14, 2009) market action, are Bearish: in the near term Neutral, mid-term Bearish, and long term Bearish,. The recent candlestick analysis is: Bearish.
**Chart by: http://www.stockta.com
Wednesday’s Market Action Close 3.57 + .16
There is a Homing Pigeon on October 12, and one Gap open down on May 21, 2009 at 5.55/5.50 , the near term resistance is 3.61, support at NIL, and the 50 day (EMA) exponential moving average is 3.91. 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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