The Red Roadmasterâ€™s US Market Re-cap + Stock Talk â„˘
15 December 2009
Date Line: Hong Kong (SAR) China
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US Stocks slid off their 14 month highs Tuesday
Re-cap of the US Stock Market Action for the session ending 15 December 2009 Tuesday's slide broke a 4 day winning streak for both the DJIA and the S&P 500. The S&P 500 is up 60% + from its 12 yr closing low on 9 March 2009. The DJIA dropped 49.05 pts, or 0.47%, to close at 10,452.00, the S&P 500 fell 6.18 pts, or 0.55% to close at 1,107.93, and the NAS tallied up a minus 11.05 pts, or 0.50%, to end the session at 2,201.05. The market does not anticipate any changes in the Fed's current policy of holding US interest rates near Zero, however, a slight change in the Fed's notes language could make an impact on investor sentiment as massive liquidity is a Key factor in this long running stock market's rally. The Fed's two-day policy-setting meeting started at 2 p.m.(1800 GMT) yesterday, and it will conclude with a statement on the economy expected today at 2:15 p.m. (1815 GMT). Advancing Sectors: Energy (+0.1%) Declining Sectors: Financials (-1.7%), Telecom (-1.4%), Materials (-1.1%), Tech (-0.5%), Consumer Staples (-0.4%), Utilities (-0.4%), Industrials (-0.3%), Consumer Discretionary (-0.3%), Health Care (0.1%) Volume and Breadth: Trade was light on the NYSE, with 1.18B/shrs changing hands, below last year's estimated daily average of 1.49B/shrs, and on the NAS, about 1.98b/shrs traded, less then last year's daily average of 2.28b/shrs. Decliners outnumbered advancers on the NYSE by about 3 to 2, and on the NAS, about 8 stocks fell for every 5 that rose. Stocks to Watch Today
Adobe Systems Inc. (ADBE), Best Buy Co., Inc. (BBY), Nike, Inc. (NKE), and Wells Fargo & Company (WFC) 1
Adobe Systems Inc. (ADBE) Up-date 1
Last Look: April 8, 2009
December 16, 2009 Paul A. Ebeling, Jnr. Analyst Today letâ€™s look at Adobe Systems Inc. (ADBE), a leading desktop publishing software provider from a Technical POV. The overall indications, after Tuesdayâ€™s (December 15, 2009) market action, are Very Bullish; in the near term Very Bullish, mid-term Bullish, and long term Very Bullish. The recent Candle Stick analysis is: Very Bullish
**Chart by: http://www.stockta.com
Latest News and Opinion: Adobe Sees Demand Improving http://digitaldaily.allthingsd.com/20091215/adobe-sees-demand-improving/?reflink=ATD_yahoo_ticker
Tuesday’s Market Action Close 36.36 + .58
There is a Bullish Engulfing Candle on December 15, and one Gap open up on July 15, 2009 at 28.45/29.00, the near term resistance is 36.53, support at 35.82, and the 50 day (EMA) exponential moving average is 35.15. This is Adobe Systems Inc. (ADBE): The Company offers business and mobile software and services worldwide. Its Creative Solutions segment provides software tools for professional publishing, Web design and development, professional photography, video production, animation, and motion graphic production, as well as printing visually rich information. The Knowledge Worker segment offers essential applications and services to help enterprises to share information and collaborate various job functions. The company’s Enterprise segment provides server-based enterprise interaction solutions that automate people-centric processes. Its Mobile and Device Solutions segment offers solutions that create compelling experiences through content, user interfaces, and data services on mobile and non-PC devices, such as cellular phones, consumer devices, and Internet connected hand-held devices. The Platform segment provides the Adobe Flash Platform that includes client and developer technologies, which enable the development of products and solutions. Its Print and Publishing segment offers various products and services, which address market opportunities ranging from the publishing needs of technical and business publishing to the company’s OEM printing businesses. The company’s products and services are used by creative professionals, designers, knowledge workers, high-end consumers, OEM partners, developers, and enterprises for creating, managing, delivering, and engaging with content and experiences across multiple operating systems, devices, and media. It distributes its products through distributors and dealers, value-added resellers, systems integrators, independent software vendors, and OEMs; and directly to end users, as well as through its Website at adobe.com. The company also licenses its technology to hardware manufacturers, software developers, and service providers. Adobe Systems was founded in 1982 and is headquartered in San Jose, California.
Competitive Landscape The US economy heavily influences business spending for software products. The success of programming companies depends heavily on strong technical expertise. The success of packagedsoftware companies depends on technical expertise and good marketing. Small software companies compete mainly by developing packaged products in small niches or producing custom products for individuals. Many small companies form alliances with larger ones to market their products. Computer Software Development Industry Forecast The output of US software publishers is forecast to grow at an annual compounded rate of 6 % between 2008 and 2013. Data Sourced: December 2008
Adobe Systems Inc. (HQ) Co-Founder and Co-Chairman Dr. John Warnock Co-Founder and Co-Chairman Charles Geschke
345 Park Avenue San Jose, CA 95110-2704 United States
Phone: 408-536-6000 Fax: 408-537-6000 http://www.adobe.com
Best Buy Co. Inc. (BBY) Up-Date 1
Last Look: June 15, 2009
December 16, 2009 Paul A. Ebeling, Jnr. Analyst Today, letâ€™s look at Best Buy Co., Inc. (BBY), the huge international specialty retailer, from a Technical POV. The overall indications, after Tuesdayâ€™s (December 15, 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 and Opinion: Profit Rises at Best Buy, but Margins Are a Worry
http://www.nytimes.com/2009/12/16/business/16best.html?partner=yahoofinance Tuesdayâ€™s Market Action Close 38.55 - 3.84
There is a Homing Pigeon on December 10, and five Gaps open up between July 9 and December 14, 2009, the near term resistance is 43.36, support at 40.95, and the 50 day (EMA) exponential moving average is 41.70. This is Best Buy Co., Inc. (BBY): the Company operates as a specialty retailer in the United States, Canada, Mexico, China, and Europe. It offers consumer electronic video products, such as televisions, digital cameras and accessories, digital camcorders, and DVD players; and audio products comprising MP3 players, navigation products, home theater audio systems and components, and mobile electronics. It also offers home office products comprising notebook and desktop computers, monitors, mobile phones and related subscription service commissions, hard drives, and networking equipment; entertainment software products, such as video gaming hardware and software, DVDs, CDs, digital downloads, and computer software; and appliances, such as kitchen appliances, plumbing fixtures, snacks, and beverages. Best Buy Co. also offers service contracts; extended warranties; product repair; broadband voice, data, and information technology services; and delivers and installs home theater, mobile audio, and appliances. As of February 28, 2009, it operated 1,023 U.S. Best Buy stores, 38 U.S. Best Buy Mobile stand-alone stores, 34 Pacific Sales stores, 6 Magnolia Audio Video stores, and 6 Geek Squad stand-alone stores. It was formerly known as Sound of Music, Inc. and changed its name to Best Buy Co., Inc. in 1983. The company founded in 1966 and is headquartered in Richfield, Minnesota.
Competitive Landscape Technological innovation and the need to replace or upgrade products drive demand. Profitability for individual companies depends on the ability to generate store traffic and repeat business, and effective merchandising. Large companies can offer wide selections of products and low prices. Small companies can compete effectively by offering specialized products, technological expertise, or superior customer service. Average annual revenue per employee is about US$200,000. Competitors include mass merchandisers, warehouse clubs, department stores, Internet and mail order retailers, specialty office and computer retailers, and some manufacturers. Consumer Electronics Stores Industry Forecast US personal consumption expenditures of electronic entertainment, musical instruments, and home computers are forecast to grow at an annual compounded rate of 4% between 2008 and 2013. Data Sourced: December 2008
Best Buy Co. Inc. (HQ) Richard M. Schulze, Founder and Chairman 7601 Penn Avenue South Richfield, MN 55423 United States Phone: 612-291-1000 http://www.bestbuy.com
Nike, Inc. (NKE) Up-date 1
Last Look: March 24, 2009
December 16, 2009 Paul A. Ebeling, Jnr. Analyst Today, letâ€™s look at Nike, Inc. (NKE), the world's #1 shoemaker, from a Technical POV. The overall indications, after Tuesday (December 15, 2009) market action is Neutral, in the near term Bullish, midterm Neutral, and long term Bearish. The recent Candle Stick analysis is:
**Chart by: http://www.stockta.com
Latest News and Opinion: NIKE, Inc. Announces Dave McTague as New CEO of Cole Haan
Tuesday’s Market Action Close 64.35
+ .19 Volume 2,401,200/shrs
There is one Gap open up on September 30, 2009 at 60.19/64.01,the near term resistance is 65.95, support at 64.01, and the 50 day (EMA) exponential moving average is 63.44. This is Nike, Inc. (NKE): NIKE designs, develops, and markets footwear, apparel, equipment, and accessory products worldwide. The company offers various categories of shoes, including running, training, basketball, soccer, sport-inspired urban shoes, and children’s shoes. It also provides shoes for aquatic activities, baseball, bicycling, cheerleading, golf, lacrosse, outdoor activities, skateboarding, tennis, volleyball, walking, wrestling, and various athletic and recreational uses. In addition, the company offers sports-inspired lifestyle apparel, athletic bags, and accessory items. Further, it provides a line of performance equipment, including socks, sport balls, eyewear, timepieces, electronic devices, bats, gloves, protective equipment, golf clubs, and various equipments designed for sports activities under the NIKE brand name, as well as markets apparel with licensed college and professional team and league logos. Additionally, it offers licenses to produce and sell NIKE brand swimwear, team sports apparel, training equipment, children’s clothing, electronic devices, eyewear, golf accessories, and belts. Nike, Inc. also markets its products under the brand names of Converse, Chuck Taylor, All Star, One Star, John Varvatos, Jack Purcell, Cole Haan, Bragano, and Hurley. The company sells its products to retail accounts, through stores, independent distributors, and licensees, as well as through its Website, nikestore.com. As of May 31, 2008, it operated 296 retail stores in the United States and 260 retail stores internationally. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.
Competitive Landscape Demand is driven by fashion and demographics. The profitability of individual companies depends on their ability to design and market attractive shoe models. Big companies have economies of scale in distribution and marketing. Small companies can compete successfully through superior design or marketing. Footwear Manufacture, Wholesale, and Retail Industry Forecast The output of US shoe and other leather product manufacturing is forecast to grow at an annual compounded rate of 4% between 2008 and 2013. Data Sourced: December 2008
Nike Inc. (HQ) Chief Executive Officer, Exec. Director: Mark G. Parker One Bowerman Drive Beaverton, OR 97005 United States Phone: 503-671-2500 Fax: 503-671-6300 Web Site: http://www.nike.com
Wells Fargo & Company (WFC) Up-date 28
Last Look: October 19, 2009
December 16, 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 Tuesdayâ€™s (December 15, 2009) market action, are Bearish: in the near term Bearish, mid-term Neutral, and long term Bearish. The recent Candle Stick analysis is: Neutral.
**Chart by: http://www.stockta.com
Latest News and Opinion: Wells Fargo Gets Special Treatment http://seekingalpha.com/article/178361-wells-fargo-gets-special-treatment?source=yahoo
Tuesdayâ€™s Market Action Close 25.66
There is a Bearish Engulfing Candle on December 9 and one Gap open down on October 16, 2009 at 30.92/30.63, the near term resistance is 25.70, support at 23.47, and the 50 day (EMA) exponential moving average is 27.40. 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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Published on Dec 16, 2009