The Red Roadmasterâ€™s US Market Re-cap + Stock Talk â„˘
August 20, 2009
Asian stocks rally led by energy and finance, as Crude Oil prices surge
Re-cap of the US Stock Market Action for August 19, 2009 US Stocks rose Wednesday as investors responded favorably to a drop in Crude Oil stockpile auguring that an economic recovery is in the headlights. The DJIA gained 61.22 ps, or 0.66%, to close at 9,279.16, the S&P 500 rose 6.79 pts, or 0.69%, to close at 996.46, the NAS tallied up a +13.32 pts, or 0.68% ending the session at 1,969.24, and the Russell 2000 rose 5.22, or 0.9%, to close at 561.65 on the day. Front month light sweet Crude Oil surged 4.7%, or US$3.23, to settle at US$72.42 bbl on the NY Merc on a report showing the biggest drop in inventories since May. News from the Energy Department that the USA's Crude Oil inventory fell by more than 8M bbls in the past week sent Crude Oil prices higher followed by stocks, as investors now believe that the decline in stockpiles of Crude is a clear indication that energy demand is rising and the economy is improving. The yield on the benchmark 10 yr T-note fell to 3.46% from 3.52% late Tuesday, prior to the Crude Oil report it was trading at about 3.44%. Volume and Breadth: Lots of traders are on vacation now contributing to light volume on the NYSE, with only about 988M/shrs changing hands, sharply below last year's estimated daily average of 1.49B/shrs, and on the NAS about 1.99B/shrs traded, well below last year's daily average of 2.28B/shrs. Advancers outnumbered decliners on the NYSE by a ratio of about 3 to 2, while on the NAS, about 17 stocks rose for every 9 that fell. Stock to Watch Today
International Business Machines Corporation (IBM), Qualcomm Inc (QCOM), Exxon Mobil Corp (XOM), and ChevronTexaco Corporation (CVX).
International Business Machines Corporation (IBM) Up-date 7 August 20, 2009 Paul A. Ebeling, Jr. 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 Wednesday’s (August 19, 2009) market action, are Bullish: in the near term Bullish, mid-term Bullish, and long term Very Bullish. The recent Candle Stick analysis is: Neutral
**Chart by: http://www.stockta.com
Latest News: IBM Enters Nanotechnology http://finance.yahoo.com/news/IBM-Enters-zacks-2999901340.html?x=0&.v=1
Wednesday’s Market Action Close 118.57
There are thre Gaps open up between Mar 31 and July 17, 2009 at 94.74/113.16, the near term resistance is 121.37, support at 118.36, and the 50 day (EMA) exponential moving average is 112.61.
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 both 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.
Qualcomm Inc (QCOM) Up-date 2 August 20, 2009 Paul A. Ebeling, Jr. Analyst Today, let’s look at Qualcomm Inc (QCOM), one of US’s oldest and largest manufacturers of digital wireless and services, from a Technical POV. The overall indications, after Wednesday’s (August 19, 2009) market action, are Neutral, in the near term, Neutral, mid-term Neutral, and long term Bullish. The recent Candle Stick Analysis is: Bullish.
**Chart by: http://www.stockta.com Latest News: The Commoditization of the 'Dellphone' http://seekingalpha.com/article/157004-the-commoditization-of-the-dellphone?source=yahoo
Wednesdayâ€™s Market Action Close 45.72
There is a Bearish Doji Star on August 13, 2009 and there are no Gaps open up or down on the chart. Near term resistance is 45.80 and near term support is at 45.17. The 50 day exponential moving average is moving up to 45.32. This is Qualcomm (QCOM): incorporated in 1985, designs, manufactures and markets digital wireless telecommunications products and services based on its code division multiple access (CDMA) technology and other technologies. The Company operates through four segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); Qualcomm Wireless & Internet (QWI), and Qualcomm Strategic Initiatives (QSI). QCT is a developer and supplier of integrated circuits and system software for wireless voice and data communications, multimedia functions and global positioning. QTL grants licenses to use portions of its intellectual property portfolio, which includes certain patent rights essential to and/or useful in the manufacture and sale of CDMA products. In December 2007, the Company acquired San SoftMax Inc. In March 2008, the Company acquired Xiam Technologies Limited (Xiam), an Ireland-based provider of wireless content targeting solutions. The Competitive Landscape Telecom market growth is leveraged on capital expenditures from large corporations. The industry has adopted a more cautious approach with regard to over expanding due to improvements forecasting demand in the sector and saturation. However, a bright spot for the industry is that service operators cannot prolong spending on equipment to expand network bandwidth because of the risk of disrupting business operations. Large cash stores in corporate coffers that are typically seen in this industry are used for purchases and acquisitions of smaller competitors.
Communications and Equipment Index Performance Year to date, through May 15, the S&P Communications Equipment Index increased 15.3%, versus a 2.1% decrease for the S%P 1500. During 2008, the index declined 40.8%, compared to 38.2% drop for the S&P 1500. Qualcomm Corp (HQ) Chairman & Chief Exec. Paul E Jacob 5775 Morehouse Dr. San Diego, CA 92121 United States Phone: 858-587-1121 Fax: 858-458-9096 http://www.qualcomm.com
Exxon Mobil Corp. (XOM) Up-date 7 August 20, 2009 Paul A. Ebeling, Jr. Analyst Today letâ€™s look at Exxon Mobil Corp (XOM), the World's largest integrated oil company, from a Technical POV. The overall indications, after Wednesdayâ€™s (August 19, 2009) market action, are Bearish: in the near term Neutral, mid-term Neutral, and long term Bearish: The recent Candle Stick analysis is: Very Bullish
**Chart by: http://www.stockta.com
Latest News: Your First Move for Thursday August 20
Wednesdayâ€™s Market Action Close 68.00
There is a Bullish Engulfing Candle on August 19 and three Gaps open down between July 15, and Aug 17, 2009 at 73.10/67.37, the near term resistance is 68.37, support at 67.72, and the 50 day (EMA) exponential moving average is 69.36. This is Exxon Mobil Corp (XOM): the Company engages in the exploration, production, transportation, and sale of crude oil and natural gas. It also engages in the manufacture of petroleum products, and transportation and sale of crude oil, natural gas, and petroleum products. The company manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and other specialty products. Exxon Mobil also has interests in electric power generation facilities. As of December 31, 2007, it had 7744 millions of barrels of liquid proved reserves, and 32,610 billions of cubic feet of proved reserves of natural gas. Exxon Mobil also operated 16,797 gross wells. The company operates in the United States, Canada, Europe, Africa, Asia-Pacific, the Middle East, Russia/Caspian region, and South America. Exxon Mobil was founded in 1870. The company was formerly known as Exxon Corporation and changed its name to Exxon Mobil Corporation in 199 Competitive Landscape Demand depends on the overall strength of the US economy, because most industrial chemicals are used in the manufacture of more-complicated products like fibers, plastics, paints, and paper. The profitability of individual companies is closely linked to efficient operations, because most products are commodities. Big producers have large economies of scale in production, which is why some chemicals are made by just a handful of companies. Small companies can compete effectively by making specialized or highly-purified products. The industry is highly automated: average annual revenue per employee is over US$600,000. Exxon Mobil Corp (HQ) Chairman, Chief Exec. Officer & President: Rex W. Tillerson 5959 Las Colinas Boulevard Irving, TX 75039-2298 United States Phone: 972-444-1000 Fax: 972-444-1348 http://www.exxonmobil.com
Exxon Subsidiaries Aera Energy LLC Esso Petroleum Company, Limited ExxonMobil Chemical Company
ChevronTexaco Corporation (CVX) Up-date 11 August 20, 2009 Paul A. Ebeling, Jr. Analyst Today letâ€™s have a look at ChevronTexaco Corporation (CVX), the US Oil Giant, from a Technical POV. The overall indications, after Wednesdayâ€™s (August 19, 2009) market action, are Neutral: in the near term Neutral, mid-term Bullish, and long term Neutral:. The Recent Candle Stick analysis is: Very Bullish
**Chart by: http://www.stockta.com
Latest News: Wall Street gains as oil data rekindles recovery expectations http://finance.yahoo.com/news/Wall-Street-gains-as-oil-data-rb-1171559773.html?x=0&.v=14
Wednesdayâ€™s Market Action Close 68.16 + 1.22
There is a Bullish Engulfing Candle on August 18 and one Gap open up on July 18, 2009 at 63.34/64.00, the near term resistance is 70.47, support at 68.00, and the 50 day (EMA) exponential moving average is 67.45. This is ChevronTexaco Corporation (CVX): Texaco's star and its Chevron stripes allow this US Oil nd Giant to have market clout. It is the 2 largest US integrated oil company behind Exxon Mobil and has proved reserves of 10.8 B bbls of crude oil equivalent and a daily production of 2.6 MM bbls of crude oil equivalent, and it also owns interests in chemicals, pipelines, and power production businesses. The company, which is restructuring its refinery and retail businesses, owns or has stakes in 9,700 gas stations in the US which operate under the Chevron and Texaco brands. Outside the US it owns or has stakes in 15,400 gas stations, which also use the Caltex brand.
The Competitive Landscape Demand is driven by federal legislation and regulations that establish a government-mandated market for bio-fuels. The profitability of bio-fuel production facilities depends on prices of gas and diesel, which fluctuate based on world petroleum demand and domestic refinery utilization. Economies of scale in ethanol production are limited due to the transportation costs associated with gathering feed stocks (corn and other biomasses) and transporting the ethanol to blending sites. As a result, large companies operate multiple production facilities. Small companies can compete effectively by developing business relations with distributors and being able to assure delivery consistently. Revenue per employee in ethanol production facilities is about US$1MMper year.
Industries Where Chevron Competes Energy & Utilities Oil & Gas Refining, Marketing & Distribution Alternative Energy Sources Chemicals Financial Services Retail
ChevronTexaco Corporation (HQ) Chairman and CEO David J. (Dave) O'Reilly 6001 Bollinger Canyon Rd. San Ramon, CA 94583 United States Phone: 925-842-1000 Fax: 925-842-3530 http://www.chevron.com
Chevron Subsidiaries and Affiliates Bridgeline Holdings, L.P. Caltex Australia Limited Chevron Mining Inc.
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