The Red Roadmasterâ€™s US Market Re-cap + Stock Talk â„˘
October 23, 2009
Date Line: Hong Kong (SAR) China
Flash Alert: New York Fed President William Dudley said the Federal Reserve will likely not lose money on the emergency programs it put in place to fight the financial crisis.
Re-cap of the US Stock Market Action for the session ending October 22, 2009 US stocks soared Thursday on Q-3 reports from Key Financials, MacDonald's, AT&T and 3M + a sterling after the Bell earnings posting from Amazon.com that drove its shares up about 15% to US$107.38 after hours. The DJIA closed up 131.95 pts, or 1.33%, at 10,081.31, the S&P 500 gained 11.51 pts, or 1.06% to close at 1,092.91, and the NAS tallied up + 14.56 pts, or 0.68% to end the session at 2,165.29. Gold prices settled roughly 0.6% lower at $1058.60 per ounce after trading as low as $1052 per ounce. Silver had been down more than 2% but settled with a 1.6% loss at $17.55 per ounce. Crude Oil prices settled at US$81.20bbl, - 0.2%. Natural Gas contracts settled 3.4% lower at US$4.95 behind news of a smaller than expected build in weekly inventories Advancing Sectors: Financials (+2.9%), Consumer Discretionary (+1.7%), Materials (+1.40%), Health Care (+0.8%), Energy (+0.8%), Industrials (+0.8%), Tech (+0.6%), Telecom (+0.5%), Utilities (+0.3%), Consumer Staples (+0.2%) Declining Sectors: (None) Volume and Breadth: Trade was moderate on the NYSE, with about 1.32B/shrs changing hands, below last year's estimated daily average of 1.49B/shrs, and on the NAS about 2.30B/shrs traded, a bit above last year's daily average of 2.28B/shrs. Advancers outnumbered decliners on the NYSE by a ratio of about 2 to 1, and on the NAS, about eight stocks rose for every five that fell. Stocks to Watch Today
ALLSTATE Corp. (ALL), Honeywell International Inc. (HON), IBM (IBM), Microsoft Corporation (MSFT), and Texas Instruments (TXN)
The Allstate Corporation (ALL) Up-date 1
Last Look: October 5, 2009
October 23, 2009 Paul A. Ebeling, Jnr. Analyst Today, letâ€™s look at The ALLSTATE Corp. (ALL), the large US insurance company, from a Technical POV. The overall indications, after Thursdayâ€™s (October 22, 2009) market action, are Bullish: in the near term Bullish, mid-term, Bullish, and long term Bullish. The recent candlestick analysis is: Bullish.
**Chart by: http://www.stockta.com
Latest News: Time For A Social Networking Shakeout http://www.forbes.com/2009/10/20/social-networking-facebook-entrepreneurs-technologywharton.html?partner=yahootix
Thursday’s Market Action Close
32.21 + 1.30
There is a Bullish Engulfing Candle on October 20, 2009, and no Gaps open up or down on the AAL, the near term resistance is 30.80, support at 29.20, and the 50 day (EMA) exponential moving average is 28.58. 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 2008 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
Honeywell International Inc. (HON) Up-date 2
Last Look: July 27, 2009
October 23, 2009
Paul A. Ebeling, Jnr. Analyst Dear Reader, Today, letâ€™s look at Honeywell International Inc. (HON), a worldwide diversified technology and manufacturing company, from a Technical POV. The overall indications, after Thursdayâ€™s (October 22, 2009) market action, are Bullish, in the near term Bullish, in the mid-term Bullish, and long term Neutral. The recent Candle Stick analysis is: Very Bullish
**Chart by: http://www.stockta.com
Latest News: Among the companies whose shares are expected to see active trade in today's session are Microsoft Corp., Honeywell International Inc. and Exelon Corp. http://www.marketwatch.com/story/stocks-in-focus-for-friday-2009-10-22?siteid=yhoof
Thursdayâ€™s Market Action Close
There is a Bullish Engulfing Candle on October 22 and two Gaps open up between July 15 and July 30, 2009 at 30.13/34.26, the near term resistance is 40.17, support at 37.33, and the 50 day (EMA) exponential moving average is 37.09. 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
Honeywell International Subsidiaries BW Technologies Ltd. Dimensions International, Inc. Gamewell-FC
International Business Machines Corporation (IBM) Up-date 9 Last Look: October 5, 2009 October 23, 2009 Paul A. Ebeling, Jnr. Analyst Today let’s look at “Big Blue”, International Business Machines Corporation (IBM), the World’s #1 provider of computer products and computer services, from a Technical POV. The overall indications, after Thursday’s (October 22, 2009) market action, are Bullish: in the near term Neutral, mid-term Bullish, and long term Bullish. The recent Candle Stick analysis is: Very Bullish
**Chart by: http://www.stockta.com
Latest News: Your First Move for Today, October 23
Thursday’s Market Action
There a Bullish Engulfing Candle on October 22, and three Gaps open up between July 15 and October 6, 2009 at 103.62/120.22, the near term resistance is 128.24, support at 121.59, and the 50 day (EMA) exponential moving average is 120.33.
This is IBM (IBM): “Big Blue” is the world's top provider of computer products and services. IBM is a leader in every market in which it competes, the company makes mainframes and servers, storage systems, and peripherals. Though perhaps still best known for its hardware, IBM's growing services business now accounts for more than half of its sales. Its IT services arm is the largest in the world and the company is also one of the largest providers of software, ranking #2, behind Microsoft, and semiconductors. The Competitive Landscape Demand for IT services is driven by rapid technological advances, but spending for these expensive products depends on the health of the US economy. The profitability of companies in the industry depends on maintaining technical expertise and on good marketing. Small companies can compete effectively by specializing in market niches or by partnering with larger companies that want to offer a broad array of services. Only the large companies can provide outsourcing services to big corporate customers. Average annual revenue per employee is close to US$200,000. Information Technology Industry Forecast The output of US computer and data processing is forecast to grow at an annual compounded rate of 6.1% between 2008 and 2013. IBM (HQ) Chairman, President, and CEO Samuel J. Palmisano New Orchard Rd. Armonk, NY 10504 United States Phone: 914-499-1900 Toll Free: 800-426-4968 http://www.ibm.com
IBM Subsidiaries Cognos ULC IBM Australia Limited IBM Canada Ltd.
Microsoft Corporation (MSFT) Up-date 13
Last Look: October 9, 2009
October 23, 2009 Paul A. Ebeling, Jnr. Analyst Today let’s look at Microsoft Corporation (MSFT), the World's #1 software company, from a Technical POV. The overall indications, after Thursday’s (October 22, 2009) market action, are Very Bullish: in the near term Bullish, mid-term Very Bullish, and long term Very Bullish. The recent Candle Stick analysis is: Very Bullish
**chart by: http://www.stockta.com
Latest News: Ballmer Tries Bringing Back Microsoft's Mojo http://online.wsj.com/article/SB10001424052748704224004574489723703101740.html?ru=yahoo&mod= yahoo_hs
Thursdayâ€™s Market Action Close 26.59
There is a DOJI on October 22 and one Gap open up on October 8, 2009 at 25.18/25.22, the near term resistance is 26.71, support 26.44, and the 50 day (EMA) exponential moving average is 25.16.
This is Microsoft Corporation (MSFT): The World's #1 software company provides a variety of products and services, including its Windows operating systems and Office software suite. The company has expanded into markets such as video game consoles, server and storage software, and digital music players. Microsoft has reached settlements to end a slew of antitrust investigations and lawsuits, including agreeing to uniformly license its operating systems and allowing manufacturers to include competing software with Windows. In 2008 Microsoft made repeated efforts to acquire Yahoo! but was rebuffed by that company's board of directors.
Microsoft Corporation (HQ) Steven A. Ballmer Chief Exec. Officer and Exec. Director One Microsoft Way Redmond, WA 98052-6399 United States Phone: 425-882-8080 Fax: 425-936-7329 http://www.microsoft.com
Microsoft Subsidiaries Avanade Inc. ContentGuard, Inc. Ensemble Studios
Texas Instruments (TXN) Up-date 6
Last Look: October 19, 2009
October 23, 2009 Paul A. Ebeling, Jnr. Analyst Today letâ€™s look at Texas Instruments (TXN), the market leader in digital signal processors (DSPs), from a Technical POV. The overall indications, after Thursdayâ€™s (October 22, 2009) market action, are Neutral, in the near term Neutral, mid-term Neutral, and long term Neutral. The recent Candle Stick analysis is: Very Bullish.
**Chart by: http://www.stockta.com
Latest News: TI inspires innovation with global ultra-low power MSP430(TM) MCU design contest http://finance.yahoo.com/news/TI-inspires-innovation-with-prnews-292291374.html?x=0&.v=1
Thursday’s Market Action Close 23.88
There is a Bullish Engulfing Candle on October 22, and are two Gaps open up on June 9, and July 15 2009 at 19.99/21.51, the near term resistance is 24.60, support at 23.60, and the 50 day (EMA) exponential moving average is 22.43. This is Texas Instruments Inc. (TXN): TI is one of the world's oldest and largest semiconductor makers, Texas Instruments is the market leader in digital signal processors (DSPs). Many of the wireless phones sold worldwide contain TI's DSPs, which are also found in other products, such as DVD players, automotive systems, and computer modems. TI jockeys back and forth with European chip giant STMicroelectronics to be the world's top maker of analog chips; both companies far outpace other analog rivals. Additional TI semiconductor offerings include logic chips, microprocessors, microcontrollers, and display components. The company also makes handheld calculators. Nokia accounts for about 20% of sales. Competitive Landscape The industry depends highly on demand from the computer industry and makers of telecommunications products such as cell phones, which can vary sharply from year to year. Companies can be successful producing standard parts at low cost or by producing highly specialized components. Small companies can compete effectively with large ones by producing specialized products or developing new applications. Technological expertise is extremely important. The industry is highly automated: average annual revenue per employee is about US$300,000. Electronic Components & Semiconductor Manufacture Industry Forecast The value of US electronic components manufacturing output is forecast to grow at an annual compounded rate of 4% between 2008 and 2013. Data Sourced: December 2008 Texas Instruments Inc. (HQ) Richard K. Templeton Chairman, Chief Exec. Officer and President 12500 TI Boulevard PO Box 60199 Dallas, TX 75266-0199 United States Phone: 972-995-2011 Fax: 972-995-4360
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