The Red Roadmaster’s US Market Re-cap + Stock Talk ™
September 17, 2009
Date Line: USA
Wall Street rises for 3rd day running as shares of healthcare companies advanced after Democrat Senator Max Baucus said his healthcare overhaul plan can pass the Senate. A healthcare company index .HMO was up 2.2%.
Re-cap of the US Stock Market Action for September 16, 2009 US Stocks rose for a 3rd straight day Wednesday, hitting new 2009 highs in a broad based rally following economic data that pointed to a stronger than anticipated global recovery. Energy and manufacturing companies were among the strongest, benefiting from data indicating improved industrial demand and a falling US$, which makes American exports more competitive in world markets. The DJIA closed up 108.30 pts, or 1.12%, at 9,791.71, the S&P 500 was up 16.13 pts, or 1.53%,to close at 1,068.76, and the NAS tallied up a + 30.51 pts, or 1.45 percent, closing at 2,133.15 on the day. The benchmark S&P index is now up 58% since hitting 12-year lows on March 9, and is up 18% since the beginning of the Y 2009. The USD fell near 1 year lows against a basket of currencies. On the New York Mercantile Exchange, Crude Oil futures rose 2.2% to US$72.51bbl. December Gold in New York hit 18 month highs, finishing at US$1,020.20 oz on the COMEX division of the New York Mercantile Exchange. Mining company Freeport-McMoran Copper & Gold Inc gained 1.2%t to US$72.15. (recently covered on Stock Talk) Volume and Breadth: Trade was above average on the NYSE, with 1.58B/shrs changing hands, above last year's estimated daily average of 1.49B/shrs, and on the NAS, about 2.76B/shrs traded, higher than 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 9 to 4. Stocks to Watch Today Echelon Corp (ELON), Exxon Mobil Corp (XOM), Google Inc. (GOOG), International Business Machines Corporation (IBM), and McDonald’s Corporation (MCD).
Echelon Corp (ELON) Up-date 2 September 17, 2009 Paul A. Ebeling, Jnr. Analyst Today, let’s look at Echelon Corp (ELON), the linker of automated equipment, from a Technical POV. The overall indications, after Wednesday’s (September 16, 2009) market action, are Very Bullish: in the near term Bullish, mid-term Very Bullish, and long term Very Bullish. The recent candlestick analysis is Very Bearish.
**Chart by: http://www.stockta.com
Latest News: Peter Larsson Re-Joins Echelon as Vice President of Smart Grid Group, Asia
Wednesdayâ€™s Market Action Close 14.64 + .55
Volume 616,800 00/shrs
There is an Inverted Hammer on September 16, and three Gaps open up between July 15 and Aug 28, 2009 at 7.50/10.40, the near term resistance is NIL, support at 13.52, and the 50 day (EMA) exponential moving average is 10.29. This is Echelon Corp (ELON): The Company designs hardware and software that link and automate industrial equipment, building environments, and devices ranging from light switches to conveyor belts. Its open-source operating system, LonWorks Network Services, lets equipment interact through local networks and the Internet. Echelon's hardware, transceivers, routers, network interfaces, can sense, monitor, and control such equipment as automatic doors, security systems, and railcars. Echelon also provides an automated electricity metering system called Networked Energy Services (NES).
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
Echelon Corporation (HQ) M. Kenneth Oshman Chairman, Chief Exec. Officer 550 Meridian Avenue San Jose, CA 95126 United States - Map Phone: 408-938-5200 Fax: 408-790-3800 Web Site: http://www.echelon.com
Exxon Mobil Corp. (XOM) Up-date 7 September 17, 2009 Paul A. Ebeling, Jnr. 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 (September 16, 2009) market action is 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: Crude Slips but Stays Above US$72 bbl
Wednesdayâ€™s Market Action Close 70.34
There is a Homing Pigeon on September 15 and one Gap open down on June 15, 2009 at 73.10/72.96, the near term resistance is 70.79, support at 69.71, and the 50 day (EMA) exponential moving average is 69.62. 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
Google Inc. (GOOG) Up-date 12 September 17, 2009 Paul A. Ebeling, Jnr. Analyst Today, let’s look at Google Inc. (GOOG), the Internet Search Engine leader, from a Technical POV. The overall indications, after Wednesday’s (September 16, 2009) market action, are Very Bullish: in the near term Bullish, mid-term Very Bullish, and long term Very Bullish. Candle stick analysis: Neutral
**Chart by: http://www.stockta.com
Latest News: Google gives new life to 2 million digital books by allowing them to return as paperbacks http://finance.yahoo.com/news/Google-to-reincarnate-digital-apf-3924864142.html?x=0&.v=16
Wednesdayâ€™s Market Action Close 488.29
There are three Gaps open up between April 2 and August 20, 2009 at 355.24/451.23, the near term resistance is 488.28, support at 471.97, and the 50 day (EMA) exponential moving average is 451.31. This is Google Inc. (GOOG): Google operates the leading Internet search engine, offering targeted search results from billions of Web pages. Results are based on a proprietary algorithm -Google's technology for ranking Web pages is called PageRank. The company generates nearly all of its revenue through ad sales. Advertisers can deliver relevant ads targeted to search queries or Web content. Google also operates the Google Network, a network of third party customers that use Google's advertising programs to deliver relevant ads to their own Web sites. Founders Sergey Brin and Larry Page each have nearly 30% voting control of the company. The Competitive Landscape Demand comes largely from corporations that sell consumer products, and telecommunications, entertainment, and financial services. The profitability of individual companies depends on creative skills and good marketing. Large companies are advantaged in being able to serve the varied needs of large customers, but small companies can be competitive through special talent or lower pricing or through special services. The industry is labor intensive, but the high value of the product produces annual revenue per employee of about US$150,000. Advertising and Marketing Industry Forecast
The output of US advertising services is forecast to grow at an annual compounded rate of 5.5 % between 2008 and 2013. Google Inc. (HQ) Chairman & Chief Exec. Officer Eric E. Schmidt Ph.D.
1600 Amphitheatre Parkway Mountain View, CA 94043 United States Phone: 650-253-0000 Fax: 650-253-0001 http://www.google.com
International Business Machines Corp. (IBM) Up-date 14 September 17, 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 indicators, after Wednesday’s (September 16, 2009) market action, are Bullish: 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: IBM and Dubuque, Iowa Partner on Smarter City Initiative City Aims to Lead in
Sustainability to Drive Economic Growth http://finance.yahoo.com/news/IBM-and-Dubuque-Iowa-Partner-prnews-3860886464.html?x=0&.v=1
Wednesday’s Market Action Close 121.82
There are three Gaps open up between on Mar 31, and July 17, 2009 at 94.74/113.16, the near term resistance is 123.23, support at 119.85, and the 50 day (EMA) exponential moving average is 115.90. 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 s oftware, 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.
McDonald's Corporation (MCD) Up-date 8 September 17, 2009 Paul A. Ebeling, Jnr. Analyst Today let’s look at McDonald’s Corporation (MCD), the world's #1 fast-food company, from a Technical POV. The overall analysis after Wednesday’s (September 16, 2009) market action is Neutral: in the near term Neutral, mid-term Neutral, and long term Neutral. The recent Candle Stick analysis is: Neutral
**Chart by: http://www.stockta.com
Latest News: McDonald's Shows Value in Products and Customer Service http://seekingalpha.com/article/161931-mcdonald-s-shows-value-in-products-and-customer-service? source=yahoo
Wednesday’s Market Action Close 56.47
+ 1.49 Volume 17,361,600/shrs
There are three Gap open down between June 8 and September 9, 2009 at 59.35/56.00, the near term resistance is 57.17, support at 556.38, and the 50 day (EMA) exponential moving average is 55.94. This is McDonald’s Corporation (MCD): "McDonald's is the world's #1 fast-food company by sales, with more than 31,000 restaurants serving burgers and fries in 120 countries, with about 14,000 Golden Arches locations are in the USA. The popular chain is well-known for its Big Macs, Quarter Pounders, and Chicken McNuggets. Most of its outlets are free-standing units, but McDonald's also has many quickservice kiosk units located in airports and retail areas. Each unit gets its food and packaging from approved suppliers and uses standardized procedures to ensure that a Big Mac purchased in Pittsburgh tastes the same as one bought in Beijing, I lived in Beijing for 4 years and it’s true. More than 75% of its restaurants are run by franchisees or affiliates. The Competitive Landscape Demographics and personal income drive demand. The profitability of individual companies depends on efficient operations, effective marketing, and the ability to provide fast service. Large companies have advantages in purchasing, financing, and marketing. Small companies can compete by offering unique products or serving a local market. The industry is highly labor-intensive: average annual revenue per worker is just under US$40,000. McDonald's Corporation (HQ) Chairman; Andrew J. (Andy) McKenna Sr.
2111 McDonalds Dr. Oak Brook, IL 60523 United States Phone: 630-623-3000 Fax: 630-623-5004 Toll Free: 800-244-6227 http://www.mcdonalds.com
McDonald's Subsidiaries McDonald's Restaurants Limited Ronald McDonald House Charities, Inc.
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