Page 1

MarketPulse BREATHE EASIER The latest investment opportunity: overweight truckers. About 20 percent of truckers are morbidly obese, and obese people tend to suffer from sleep apnea. That means they don’t breathe well as they sleep, which can result in drowsy drivers. An advisory committee for the Federal Motor Carrier Safety Administration is recommending that all morbidly obese truckers be checked for apnea. That could mean 1.1 million new customers will need CPAP machines, which help people breathe while asleep, Citi Investment Research says. That could mean more demand for ResMed (RMD) and others CPAP makers. There are 7 million commercial motor vehicle drivers on U.S. interstates. Among them, 90 percent are overweight, 50 percent are obese and 20 percent are morbidly obese. Source: Citi Investment Research

QUICK SILVER Haven’t we seen this before? AlSilver price per ounce ready the price of silver has dropped steeply twice in the last $50 year on worries that its price has risen too far, too fast. It happened a third time on Wednesday. Silver plunged 7 percent after investors figured there was less of a chance 40 that the Federal Reserve will launch a new round of bond buying to help the economy. Investors earlier bought gold and $33.82 silver on expectations that more 30 bond buying – and therefore inflation – was coming. Several analysts expect silver to fall further: Barclays Capital predicts it will drop to $31.80 per ounce by the end of the year, 20 down from about $35 now.

LET’S GET ACTIVE ETFs are booming in popularity: Investors poured a record $28.2 billion into them in January, according to Lipper. ETFs are like traditional mutual funds in that they invest in lots of different things, like the 500 stocks in the S&P 500 or a mix of corporate bonds. The difference is that investors can buy and sell ETFs throughout the day, while mutual funds are priced just once. Until now, most ETFs have simply tracked different indexes. But more are starting to use stock and bond pickers to try to beat the index. The latest is PIMCO Total Return ETF (TRXT), which is run by Bill Gross, who manages the largest U.S. bond fund. If it succeeds, expect to see even more active ETFs, says fund researcher Strategic Insight. They now make up just 0.5 percent of all ETFs.

’11 ’12 $34.53

Source: Factset

AP

Size doesn’t matter InsiderQ&A

Brian Jacobsen Who he is: Chief Portfolio Strategist for Wells Fargo Funds Management, which manages $209 billion in assets. What he suggests: Forget about a company’s size, it’s the industry that matters.

When investors consider mutual funds, they often ask whether it’s a large-cap or small-cap fund and whether it focuses on growth or value stocks. Financial analysts also often focus their debates on the size and style of stocks: Is now the time for big stocks to become market leaders, rather than small stocks? But Brian Jacobsen says investors shouldn’t pay much attention to that. After looking at 21 quarters’ worth of data for 3,000 stocks, he found that a stock’s industry matters more than whether it’s a large cap or growth stock. So when picking a mutual fund, I shouldn’t care whether it’s a large-cap value or small-cap growth fund? It’s kind of arbitrary. I think that when the research was done to say that size matters or style matters, it was not necessarily something that an entire industry was supposed to be built on. The original premise was that, in certain instances, size can make a difference, and that certain attributes like valuation matters. It can be useful for describing something but not for making an investment decision. So what is useful? Really what matters is the sector. You mean a large-cap bank stock’s movements depend more on it being a bank than on it being a large-cap or a value stock? Right. If you want a diversified portfolio, that’s what you should pay attention to. Not just a check-the-box mentality of investing.

Mortgage rates inch up

Sticking with utilities Utility stocks are a disappointment. Although the stock market is off to a great start this year, investors are worried that utility stocks’ nearly 15 percent climb in 2011 — topping all of the industries in the Standard & Poor’s 500 index — was too far, too fast. Utility stocks are down 3.5 percent so far in 2012, compared with the 9.3 percent rise of the index. Yet they’re still good long-term buys. Several financial analysts point out that utility stocks offer relatively high dividends, look set for steady profit growth and aren‘t expensive. One of the reasons that Citi Investment Research analyst Brian Chin is optimistic is their recent poor performance. He points out that over the last 20 years — nearly every time utility stocks have trailed the market by this much over 40 trading days, they did better than the S&P 500 over the next 12 months. The stocks’ recent decline

has also made them cheaper, relative to their earnings. Utility stocks have an average price-earnings ratio of 13.5, meaning they trade at 13.5 times their earnings per share over the last 12 months. That’s down from 14.9 in late 2011. Over the last decade, utilities have had an average P/E ratio of 13.5. But that could rise to 15 or even 17, according to Credit Suisse analysts. That’s because yields on bonds and savings accounts are low, which makes the dividends that utilities pay even more attractive. Utilities in the S&P 500 have an average dividend yield of 4.1 percent, twice the 2 percent yield for the index. Credit Suisse also forecasts earnings growth of 3 to 6 percent for regulated utilities, which tend to have steady earnings. Suggested buys: Edison International (EIX) and CMS Energy (CMS), which run regulated utilities in California and Michigan, respectively.

These utility stock mutual funds all have four-star ratings or better from Morningstar and dividend yields above 3 percent. Morningstar gives Franklin Utilities fund its top gold-medal rating for future performance expectations. Fund

Symbol

1-yr return

Franklin Utilities

FKUTX

14.4%

ING MFS Utilities

IMUIX

6.8

JHVIT Utilities Trust

JEUTX

6.8

MFS Utilities

MMUFX

6.8

5-yr.* return

10-yr* return

3.7%

Expense ratio

Dividend yield

8.6%

0.76%

3.4%

5.3

n/a

0.76

3.6

5.0

11.7

0.95

3.7

5.2

12.0

1.04

3.2

Source: Morningstar; Data through Feb. 29 *annualized

TICKER

52-WK RANGE FRIDAY $CHG %CHG %CHG %RTN RANK %RTN LOW HIGH CLOSE 1WK 1WK 1MO 1QTR YTD 1YR 1YR 5YRS* PE YLD

Air Products

APD

72.26 8

98.01

91.88

-0.06

-0.1

s

s

7.9 +4.18

2

6.8

16

2.5

Amer Water Works

AWK

25.39 0

34.67

33.88

-0.04

-0.1

t

s

6.3 +25.64

1 27.0a

18

2.7

Amerigas Part LP

APU

36.76 7

48.74

44.60

-1.61

-3.5

s

s

-2.9

+.15

3

13.0

25

6.8

Aqua America Inc

WTR

19.28 7

23.28

22.02

-0.53

-2.4

t

s

-0.1 +1.34

2

2.7

22

3.0

Arch Dan Mid

ADM

23.69 6

37.71

31.64

-0.32

-1.0

s

s

10.6—12.13 3

0.4

14

2.2

AutoZone Inc

AZO

255.45 0 378.96 378.45 18.65

5.2

s

s

16.5 +43.98

1

25.3

19

...

Bank of America

BAC

Bk of NY Mellon

BK

Bon Ton Store

BONT

CVS Caremark Corp

4.92 4

14.70

8.13

0.26

3.3

s

s

46.2—40.93 5 -24.4

...

0.5

17.10 4

30.97

22.30

0.63

2.9

s

s

12.0—24.01 4

-8.6

11

2.3

2.23 2

17.24

5.15

0.36

7.5

s

s

52.8—65.99 5 -34.4

...

3.9

CVS

31.30 0

45.39

45.03

0.96

2.2

s

s

10.4 +39.09

17

1.4

Cigna Corp

CI

38.79 4

52.95

44.20

-0.89

-2.0

s

s

5.2 +4.27

2

-1.1

9

0.1

CocaCola

KO

61.29 8

71.77

69.18

0.18

0.3

s

s

-1.1 +10.29

2

11.0

19

2.9

Comcast Corp A

CMCSA 19.19 0

29.92

29.24

0.05

0.2

s

s

23.3 +18.43

1

3.8

19

2.2

Community Bk Sys

CBU

21.67 7

28.95

26.55

-1.16

-4.2

t

s

-4.5 +11.27

2

8.2

13

3.9

Community Hlth Sys

CYH

14.61 4

42.50

24.18

-0.93

-3.7

s

s

38.6—40.65 5

-8.2

10

...

Entercom Comm

ETM

4.61 3

13.63

6.71

-0.69

-9.3

t

s

9.1—43.04 5 -21.0

7

...

Fairchild Semicond

FCS

10.25 4

21.02

13.91

-1.00

-6.7

t

s

15.5—24.44 4

-5.0

12

...

Frontier Comm

FTR

3.81 2

9.55

4.55

-0.10

-2.0

s

t -11.7—35.90 4

-9.1

27

8.8

Genpact Ltd

G

13.09 6

18.16

15.73

-0.38

-2.4

s

s

Harte Hanks Inc

HHS

7.00 3

13.24

8.52

-0.66

-7.2

t

t

Heinz

HNZ

48.12 8

55.00

52.98

-0.45

-0.8

s

s

-2.0 +12.03

2

6.3

17

3.6

Hershey Company

HSY

51.41 0

62.38

61.33

0.22

0.4

s

s

-0.7 +19.15

1

5.0

22

2.5

Kraft Foods

KFT

30.43 0

39.06

38.25

0.37

1.0

t

s

2.4 +25.15

1

6.6

19

3.0

Lowes Cos

LOW

18.07 0

28.59

28.13

0.97

3.6

s

s

10.8 +11.17

2

-1.2

20

2.0

M&T Bank

MTB

66.40 6

90.76

80.59

-0.48

-0.6

t

s

5.6 —2.71

3

-4.4

13

3.5

McDonalds Corp

MCD

72.89 0 102.22

99.50

-0.12

-0.1

t

s

-0.8 +36.73

1

20.3

19

2.8

-3.6

3.8

8.6

1 25.3a

20

1.1

-6.3—30.74 4 -18.4

12

4.0

5.2 +13.99

NBT Bncp

NBTB

17.05 7

24.10

21.33

-1.01

-4.5

t

s

+.64

3

2.5

13

Do countries make a difference? Like a U.S. bank stock versus a foreign bank stock? Country does make a difference, but it’s becoming less important now. It used to be, especially in emerging markets, that the company’s domicile was really important, whereas in the developed world, the sector was the dominant factor. But now as time has gone on, we’re seeing that businesses that operate in China, they might be domiciled in Luxembourg or the U.S. Is that a Western company or a Chinese company?

Nexstar Bdcstg Grp

NXST

5.53 6

10.28

8.13

-0.28

-3.3

t

s

3.7 +16.31

1

1.6

...

...

PNC Financial

PNC

42.70 8

64.37

59.61

0.23

0.4

t

s

3.4 +1.70

2

-1.8

11

2.3

PPL Corp

PPL

24.10 8

30.27

28.46

-0.39

-1.4

s

t

-3.3 +16.01

1

-1.4

11

5.1

Penna REIT

PEI

6.50 7

17.34

13.89

0.72

5.5

s

s

33.0 +5.23

2 -14.6

...

4.3

PepsiCo

PEP

58.50 4

71.89

62.52

-0.27

-0.4

t

t

-5.8 +2.61

2

2.7

16

3.3

Philip Morris Intl

PM

60.45 0

84.33

84.55

1.53

1.8

s

s

7.7 +38.86

1 41.1a

17

3.6

Procter & Gamble

PG

57.56 9

67.77

66.67

-0.04

-0.1

s

s

-0.1 +10.19

2

3.6

17

3.1

Prudential Fncl

PRU

42.45 8

66.57

61.34

0.25

0.4

s

s

22.4 -+.43

3

-5.9

8

2.4

SLM Corp

SLM

10.91 9

17.11

16.11

0.05

0.3

s

s

20.2 +13.96

1 -17.1

14

3.1

SLM Corp flt pfB

SLMBP 39.00 5

60.00

48.08

0.40

0.8

s

s

23.3

0.0

...

9.6

Southn Union Co

SUG

26.90 0

44.65

43.71

-0.30

-0.7

s

s

3.8 +55.09

1

10.2

22

1.4

TJX Cos

TJX

24.13 0

37.15

37.08

1.11

3.1

s

s

14.9 +48.82

1

23.0

19

1.0

UGI Corp

UGI

24.07 5

33.53

28.04

-0.65

-2.3

s

t

-4.6—10.11 3

4.7

15

3.7

Verizon Comm

VZ

32.28 8

40.48

38.67

0.53

1.4

s

s

-3.6 +11.85

2

7.0

45

5.2

WalMart Strs

WMT

48.31 8

62.63

59.01

0.22

0.4

t

s

-1.3 +16.36

1

6.2

13

2.7

Weis Mkts

WMK

36.52 7

44.85

41.96

-0.88

-2.1

t

s

5.1 +10.79

2

2.5

15

2.9

If sectors are the best way to look at the market, which sectors look good now? Right now, we’re favoring the energy sector. It is a natural hedge against high oil prices. They’re the ones that profit from it We also like healthcare. That’s more of a long-term investment. They’re selling to a bunch of addicts — the longer you live, the more health care you require. The more you require, the more you buy, and the more you live. Some people would call that a vicious cycle, others would call it a virtuous cycle. And technology. We like to find those companies that help other businesses improve their efficiency.

Notes on data: Total returns, shown for periods 1-year or greater, include dividend income and change in market price. Three-year and five-year returns annualized. Ellipses indicate data not available. Price-earnings ratio unavailable for closed-end funds and companies with net losses over prior four quarters. Rank classifies a stock’s performance relative to all U.S.-listed shares, from top 20 percent (far-left box) to bottom 20 percent (far-right box).

Answers edited for content and clarity. AP

Stock Screener

...

Earnings season’s biggest winners

Usually it’s bad for a stock when a company loses money. It’s usually really bad when the loss is bigger than financial analysts expected. But Micron Technology has proved to be an exception. It reported a loss of 19 cents per share for its last quarter, nearly double the loss of 10 cents that analysts expected. But its stock is up 34.9 percent since that Dec. 22 report. That’s the biggest gain for any stock in the Standard & Poor’s 500 index following its earnings report, according to FactSet. The reason: Investors are looking ahead to better times for Micron, a maker of memory chips. It was hurt last quarter by flooding in Thailand, which shut down many factories. Analysts expect demand for chips to improve now that the flooding has subsided. Micron also rose on the bankruptcy filing of a rival chip maker from Japan. That should limit supply of chips and benefit the remaining competitors. This screen shows the stocks in the S&P 500 that have had the biggest gains since reporting their earnings. SOURCE: FactSet

COMPANY

Micron Technology Jabil Circuit Discover Financial Ser. E*TRADE Financial Ross Stores Sears Holdings Apple Citigroup Whirlpool Red Hat Adobe Systems Bank of America Fastenal Oracle Citrix Systems Intuitive Surgical

Money market mutual funds

MIN INVEST PHONE

YIELD

PRIME FED Taxable—national avg RATE FUNDS Selected Daily Govt Fund/Cl D FRIDAY 3.25 .13 Tax-exempt—national avg 6 MO AGO 3.25 .13 Vanguard OH Tax-Exempt MMF 1 YR AGO 3.25 .13

0.01 0.19 $ 10,000 min (800) 243-1575 0.01 0.05 $ 3,000 min (800) 662-7447

FRIDAY YIELD

1WK

2.15 3.87 3.31 4.58 7.01 1.07

0.04 0.03 -0.05 0.00 -0.15 -0.01

FRIDAY YIELD

1WK

0.07 0.20 0.11 0.28 0.84

-0.02 0.00 -0.02 -0.03 -0.05

t s s s s

s s s s t

-0.05 -0.09 -0.04 -0.48 -1.45

0.13 0.30 0.16 0.82 2.31

0.07 0.01 0.16 0.71

10-year T-Note 1.98 30-year T-Bond 3.10 Money fund data provided by iMoneyNet Inc.

0.00 0.00

s t

t -1.59 s -1.54

3.57 4.66

1.72 2.72

U.S. BOND INDEXES Broad market Lehman Triple-A corporate Moody’s Corp. Inv. Grade Lehman Municipal Bond Buyer U.S. high yield Barclays Treasury Barclays

TREASURYS 3-month T-Bill 1-year T-Bill 6-month T-Bill 2-year T-Note 5-year T-Note

CHANGE 1MO 3MO 1YR s s t s t s

t t t t t t

52-WK HIGH LOW

-0.93 -1.29 -0.71 -1.07 0.22 -1.30

3.18 5.24 4.11 5.72 10.15 2.43

CHANGE 1MO 3MO 1YR

TICKER

FRIDAY NAV

WK CHG

American Funds BalA m ABALX American Funds BondA m ABNDX American Funds CapIncBuA m CAIBX American Funds CpWldGrIA m CWGIX American Funds EurPacGrA m AEPGX American Funds FnInvA m ANCFX American Funds GrthAmA m AGTHX American Funds IncAmerA m AMECX American Funds InvCoAmA m AIVSX American Funds NewPerspA m ANWPX American Funds WAMutInvA m AWSHX BlackRock GlobAlcA m MDLOX BlackRock GlobAlcC m MCLOX BlackRock GlobAlcI MALOX DFA EmMktValI DFEVX Dodge & Cox Income DODIX Dodge & Cox IntlStk DODFX Dodge & Cox Stock DODGX Fidelity Contra FCNTX Fidelity GrowCo FDGRX Fidelity LowPriStk d FLPSX FrankTemp-Franklin Income A m FKINX FrankTemp-Franklin Income C m FCISX FrankTemp-Mutual Euro Z MEURX FrankTemp-Templeton GlBond A mTPINX FrankTemp-Templeton GlBondAdv TGBAX Harbor IntlInstl d HAINX Oakmark EqIncI OAKBX PIMCO AllAssetI PAAIX PIMCO LowDrIs PTLDX PIMCO TotRetA m PTTAX PIMCO TotRetAdm b PTRAX PIMCO TotRetIs PTTRX PIMCO TotRetrnD b PTTDX Permanent Portfolio PRPFX T Rowe Price EqtyInc PRFDX T Rowe Price GrowStk PRGFX T Rowe Price HiYield d PRHYX T Rowe Price MidCpGr RPMGX Vanguard 500Adml VFIAX Vanguard 500Inv VFINX Vanguard GNMAAdml VFIJX Vanguard InstIdxI VINIX Vanguard InstPlus VIIIX Vanguard InstTStPl VITPX Vanguard MuIntAdml VWIUX Vanguard STGradeAd VFSUX Vanguard Tgtet2025 VTTVX Vanguard TotBdAdml VBTLX Vanguard TotBdInst VBTIX Vanguard TotIntl d VGTSX Vanguard TotStIAdm VTSAX Vanguard TotStIIns VITSX Vanguard TotStIdx VTSMX Vanguard WellsIAdm VWIAX Vanguard Welltn VWELX Vanguard WelltnAdm VWENX Vanguard WndsIIAdm VWNAX Vanguard WndsrII VWNFX Wells Fargo AstAlllcA f EAAFX

19.47 12.72 51.45 35.45 39.55 38.81 32.24 17.50 29.55 29.23 30.08 19.64 18.28 19.73 31.57 13.72 33.01 112.32 74.90 94.60 39.85 2.17 2.19 20.62 13.35 13.32 60.27 28.93 12.33 10.43 11.15 11.15 11.15 11.15 49.12 25.03 36.42 6.79 58.64 126.58 126.56 11.05 125.76 125.77 31.11 14.24 10.76 13.24 11.05 11.05 14.75 34.36 34.37 34.35 57.39 33.29 57.50 49.84 28.08 12.57

+.07 +.03 +.14 +.03 -.08 +.04 +.07 +.04 +.10 +.01 +.05 -.03 -.03 -.03 +.36 +.07 -.19 -.24 +.42 +.75 -.28

GROUP, FUND

Stan Choe; J. Paschke • AP

1

InterestRates

2.05 3.72 3.28 4.54 6.61 0.93

52-WK HIGH LOW

MutualFunds

LocalStocks COMPANY

The average rate on a 30-year fixed mortgage fell to 3.90 percent from 3.95 percent the week before. That’s close to its record low of 3.87 percent, last reached two weeks earlier. A year ago, the average rate was 4.87 percent. Mortgage rates have followed Treasury yields lower. The yield on the 10year Treasury note is below 2 percent, down from about 3.4 percent a year ago.

+.02 +.10 +.11 -.38 -.16 +.03 +.02 +.05 +.05 +.05 +.05 -.60 +.02 +.34 +.02 -.11 +.42 +.42 -.01 +.42 +.42 +.01 -.01 +.02 +.02 +.02 -.04 +.01 +.01 +.21 +.13 +.22 +.39 +.22 +.03

4WK

RETURN/RANK 1YR 5YR

+2.5 +.4 +2.7 +3.8 +3.7 +3.3 +3.5 +1.9 +3.5 +3.4 +2.7 +2.0 +2.0 +2.0 +3.4 +1.0 +4.0 +3.1 +4.6 +5.9 +2.8 +1.9 +1.9 +3.2 +1.9 +1.9 +3.8 +2.4 +1.4 +.2 +.3 +.3 +.3 +.3 -.2 +2.7 +5.9 +2.2 +3.1 +3.6 +3.6 -.1 +3.6 +3.6 +3.2 -.2 +.4 +2.3 +.1 +.1 +3.2 +3.2 +3.2 +3.2 +1.2 +2.1 +2.1 +3.7 +3.7 +2.5

+7.5/A +8.0/B +5.9/A -.3/C -5.3/B +2.6/D +2.6/D +6.6/A +3.7/D /C +9.1/A +1.3/C +.6/C +1.6/C -5.1/D +6.9/D -7.8/C +.7/D +6.8/C +12.6/A +7.0/A +3.4/D +2.9/E -4.4/A +4.8/C +5.2/C -1.2/A +4.4/C +7.3/A +2.8/B +6.2/D +6.4/D +6.6/D +6.3/D +6.0/B +3.3/C +9.0/A +5.5/C +3.5/C +6.9/A +6.8/B +7.9/B +6.9/A +6.9/A +6.4/B +10.9/B +3.0/B +4.4/A +8.6/A +8.6/A -6.2/C +6.3/B +6.3/B +6.2/B +11.1/A +6.8/A +6.9/A +6.8/A +6.8/B +5.0/

+3.9/B +3.6/E +2.0/C +1.5/B +1.3/A +2.5/A +2.0/D +2.8/C +1.1/C +3.4/A +1.5/B +5.3/B +4.5/B +5.6/B +7.4/A +6.7/B -1.1/A -2.0/D +5.1/B +7.9/A +4.4/A +3.5/D +3.0/D +.9/A +10.8/A +11.0/A +2.6/A +5.5/A +6.8/A +5.3/A +7.9/A +8.1/A +8.4/A +8.1/A +9.6/A +.9/B +4.2/B +7.3/A +7.5/A +1.9/B +1.8/B +6.7/A +2.0/B +2.0/B +2.5/A +5.2/B +4.4/B +3.0/A +6.3/B +6.4/B -.8/B +2.5/A +2.5/A +2.4/B +6.6/A +4.9/A +5.0/A +.7/B +.6/B +3.4/

Rank: Fund’s letter grade compared with others in the same performance group; an A indicates fund performed in the top 20 percent; an E, in the bottom 20 percent.

TICKER

CLOSE

PERCENT CHANGE SINCE EARNINGS REPORT

MU JBL DFS ETFC ROST SHLD AAPL C WHR RHT ADBE BAC FAST ORCL CTXS ISRG

$8.64 25.98 30.53 9.99 53.90 75.96 545.18 34.10 74.14 50.23 33.73 8.13 53.10 29.96 75.43 516.91

34.9% 33.9 32.3 25.0 24.0 22.9 22.1 20.9 20.3 19.7 19.6 16.8 16.6 16.3 16.1 16.0

1 YR. STOCK CHANGE

-22.0% 20.9 45.0 -35.9 49.7 -9.0 54.8 -25.9 -7.7 23.4 -2.2 -41.2 75.3 -6.7 7.9 60.1

P/E RATIO DIVIDEND BASED ON YIELD LAST 12 MOS.

n/a 15 8 19 20 n/a 16 9 15 69 20 813 44 17 40 42

0.0 1.2 1.3 0.0 1.0 0.0 0.0 0.1 2.7 0.0 0.0 0.5 1.3 0.8 0.0 0.0

q

Dow industrials

-0.0% WEEKLY

p

Nasdaq

+0.4% WEEKLY

LARGE-CAP

p

S&P 500

+0.3% WEEKLY

q

SMALL-CAP

Russell 2000

-3.0% WEEKLY

p p

+0.9%

p p

+2.4%

p p

+1.8%

q p

-3.5%

MO +6.2%

YTD

MO +14.2%

YTD

MO +8.9%

YTD

MO +8.3%

YTD


TL Stocks, 3/2  

TL Stocks, 3/2, news

Advertisement
Read more
Read more
Similar to
Popular now
Just for you