Wednesday, June 25, 2014

Judge needs more time on GM recall request

CORPUS CHRISTI, Texas (AP) — A federal judge in Texas said she would consider arguments made Friday and await additional information, before deciding whether to grant an emergency injunction that could force General Motors to tell owners of 2.53 million cars with a defective ignition to not drive them until repaired.

U.S. District Judge Nelva Gonzales Ramos said she had not had time to thoroughly read a new brief by the plaintiffs filed only shortly before the hearing. About 40 people listened to more than two hours of arguments and testimony.

A flawed ignition switch in Chevrolet Cobalts, Saturn Ions and other small cars allows the key to turn from the "run" position to the "accessory" position, causing the loss of power steering, power brakes and the airbags.

As of Friday, GM confirmed it has made more than 15,000 rental and loaner cars available to drivers who own the affected vehicles and are afraid to drive them. The recall repair is still on track to start the week of April 7.

GM has admitted to knowing the switches were defective for at least a decade, but didn't start recalling the vehicles until February. The Detroit automaker has linked the faulty ignition switch to 13 deaths and 32 crashes in the United States and Canada. Others, including the families of some victims, say there have been more.

On Wednesday, GM CEO Mary Barra told a Senate subcommittee that owners can continue safely using the cars if precautions are taken, such as just using only the ignition key with nothing attached.

On Friday, holding a steering wheel and ignition for the judge to see, plaintiffs' attorney Robert Hilliard described a defect that could occur at any time and was especially impacting young people because the cars were marketed to "newly-minted drivers."

"There is no safe way to drive this vehicle at all because of the unknown event that has to occur for the defect to show up," Hilliard said.

He pointed to the portion of GM's recall notice that said there was a! risk if "your vehicle experiences rough road conditions or other jarring or impact related events."

Hilliard scrolled through photographs of the victims projected onto a large screen in the courtroom and spoke of youth lost. He called witnesses who testified about accidents or close calls in their vehicles. One was Jesse Hernandez, 23, who survived a crash that killed his twin brother in a red 2007 Saturn Ion in April 2012. He said he had fallen asleep while his brother was driving. Their car hit a guardrail and flipped three times. The airbags did not deploy.

"He ended up dying in my arms moments later," Hernandez testified.

Laura Valle of Corpus Christi, said she did as instructed and removed everything except the key, but still suddenly lost power while driving to Wal-Mart in March.

"The car just died on me," Valle testified.

Hilliard implored the judge to force GM to do more. He would propose a "Do Not Drive" sticker that would be plastered on every vehicle until it was repaired.

But David Balser, a lawyer for GM, called the measure Hilliard was asking the judge to take "unprecedented." He said he knew of no court that had ordered such a move while a recall was underway. "It would cause mass confusion to GM's consumers," he said. "It would create chaos."

Balser also noted that the plaintiffs, Charles and Grace Silvas, had already stopped driving their Chevrolet Cobalt back in February. The Silvas did not testify Friday.

Furthermore, as individuals, Balser said the Silvas had no standing to get an injunction for the general public. He said at least 15 class actions lawsuits had already been filed against GM in relation to this issue.

"They do not need a mandatory injunction telling GM to tell them to park their car because they have already parked their car," Balser said. He said Hilliard only presented anecdotal evidence and no proof that the ignition defect was to blame in the incidents he cited.

GM's filing with the court included data ! from exte! nsive testing of some recalled calls at its proving grounds, showing that the automaker was unable to make the key move out of the run position.

However, Hilliard argued that the order was necessary because others were still driving the cars, making the roads dangerous for everyone.

GM is conducting an internal investigation that should be complete in 45 to 60 days. The Justice Department is pursuing a criminal investigation of how GM handled the recall.

Associated Press Writer Christopher Sherman wrote this report with some staff reporting contributed from USA TODAY.

Tuesday, June 24, 2014

A $6.9 million bet on a clean shave

Techie makes a bet on a clean shave   Techie makes a bet on a clean shave NEW YORK (CNNMoney) Tristan Walker is no stranger to the startup hustle.

As a first year student at Stanford Business School, Walker emailed Foursquare founders Dennis Crowley and Naveen Selvadurai. He parlayed the email into a job heading up business development for the startup. Walker later left Foursquare to become an entrepreneur in residence at investment firm Andreessen Horowitz.

Now Walker is ready for the next step in his career: heading up his own company.

His new venture, Walker & Company, just raised $6.9 million in a round of financing led by Andreessen Horowitz. It will provide products made specifically for people of color. The idea stemmed from his own experience.

Walker, who is African American, found men's razors difficult to use due to his hair and skin type. As a solution, the first brand under the Walker & Company umbrella is called Bevel -- a six-piece razor kit selling for $59.95 that is designed specifically for people with coarse, curly hair.

"I know when I started a company, there's one thing that was very important to me, and that was developing something with real authenticity," Walker told CNNMoney.

Walker says that with a single blade, the Bevel razor cuts the hair level with the skin rather than beneath like multi-blade razors. The kit also includes creams aimed at reducing irritation and bumps. The idea is to tap into the health and beauty market for people with curly and coarse hair.

According to Walker, a large number of black males are interested in a product that helps combat razor burn. In addition to African Americans, Walker & Company products will address specific needs faced by Latinos and Asians.

"When I think of other issues that exist in the community, I think about things like Vitamin D deficiency, I think about hyperpigmentation, I think about natural hair transitioning," Walker says. "We're going to develop brands to solve each of those problems."

While the Bevel is currently available only online, Walker says his goal is to have it sold in major retailers.

Monday, June 23, 2014

Amazon.com, Inc. is Taking on Apple

Amazon.com (NASDAQ: AMZN  )  has been aggressively investing in new products so far in 2014, and many of those product categories are directly competing with Apple. Amazon has in excess of 240 million e-Commerce customers and its smartphone launch will help it to generate more sales from them. Ultimately, Amazon is trying to grab market share from Apple (NASDAQ: AAPL  )  in at least four categories including tablets, smartphones, music, and video content. 

Hardware push
The recent unveiling of its Fire phone intensifies the company's push into hardware and could potentially see healthy rates of adoption with innovative features such as Firefly, a recognition technology that will identify and inform the user about more than 100 million items.

In addition to the Fire smartphone, Amazon's Jeff Bezos stated that the company already has tens of millions of Kindle Fire tablet owners. The Kindle Fire HDX is a great tablet, and competes with Apple's iPad line. Apple saw its iPad unit sales decline 16% year over year in the last quarter, and the company cited channel inventory issues.

However, IDC stated that larger-screen phones and consumers keeping their tablets for longer time periods were the major contributors for a weaker than expected quarter for tablets. According to IDC, the tablet market in the first quarter of 2014 saw a 35.7% decline from the holiday quarter, and was up only 3.9% year over year.

This deceleration was across all the major OS and screen sizes, which indicates the year ahead could be challenging for tablets. But unlike Apple, Amazon makes most of its money from content sales and e-Commerce transactions on tablets, and is much more likely to weather future declines in the tablet market. 

In addition, Amazon launched Fire TV earlier in the year which competes with video streaming players like Apple TV, Roku, and Chromecast by Google.

Media content
Amazon also made huge strides in its efforts to grow media sales in 2014. Its North American media sales have lagged the company's total North American sales. In the last quarter, Amazon's North America sales grew 26% year over year, but media sales grew only 12% year over year. So that might have prompted the big investments in media content this year. 

Amazon launched Prime Music, which is an ad-free music streaming service for Prime customers. Prime Music already has 1 million songs available for streaming and competes with Apple's iTunes Radio and its newly minted Beats Music service. 

In addition, Amazon also added a large amount of video content on Prime Video over the last one year, and now has more than 40,000 titles, including a number of exclusive and original shows. And since iTunes is a major retailer of video content, the growth of Amazon Prime doesn't bode well for Apple. Numerous Amazon Prime customers will probably reduce their purchases of a la carte video content on iTunes because they are already available on Amazon Prime. 

Disrupting Apple?
Amazon has a very high customer satisfaction rate; the company has been ranked number one in the ForeSee U.S. Retail Index for nine consecutive years. Amazon is taking on Apple and could become a worthy competitor.

The recent investments in the Fire phone and Fire TV demonstrate the company's willingness to come-out with product features that are differentiated and more consumer-friendly. Amazon could steal a lot of share from Apple on many different fronts as the competition between the two intensifies.

Will Amazon compete with Apple's next smart device?
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

Stock buybacks likely to peak with end of cheap debt

SAN FRANCISCO (MarketWatch) — Corporate share buybacks, which have risen to record amounts along with market highs, may begin to lose their luster for investors as an earnings booster as the end of cheap debt nears and fundamental growth gets more scrutiny.

Stocks sold off last Wednesday in reaction to a possible hike in the near-zero fed funds rate in about a year's time. At a Federal Open Market Committee news conference, Federal Reserve Chairwoman Janet Yellen said rate hikes could begin "around six months" after the Fed closes out its bond purchase program, which is expected to end in about six months. That low rate of borrowing has encouraged more corporate borrowing, which in turn has made it into dividends, debt refinancing, and share buybacks.

On the week, the Dow Jones Industrial Average (DJIA)  finished up 1.5%, the S&P 500 index (SPX)  closed up 1.4%, and the Nasdaq Composite Index (COMP)  finished 0.8% higher, even though all three indexes closed lower on Friday.

The amount spent on share buybacks in the past fourth quarter is expected to reach a new high, according to an estimate from Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. Verified figures are expected this week.

But those levels of spending aren't likely to continue. Investors are becoming more likely to reward companies that are increasing earnings and sales in tandem, and less likely to reward companies that have been using buybacks for earnings support.

"People are starting to wise up: McDonalds and IBM have done [buybacks] for years, but shares have stagnated," said Paul Nolte, portfolio manager at Kingsview Asset Management. "People want to see real earnings, real sales."

Share buybacks for S&P 500 companies are estimated to have reached $129.39 billion for the fourth quarter on operating earnings of $250.05 billion, according to S&P Dow Jones Indices data.

Meanwhile, corporations are still issuing more than $200 billion in debt a quarter, and have been doing so since the first quarter of 2012, hitting a peak of $298.79 billion in the fourth quarter of 2012, according to data from Dealogic. At the beginning of 2012, the benchmark 10-year Treasury note (10_YEAR)  was yielding just under 2% and fell as low as 1.39% that year, compared with the current yield of 2.75%.

That record amount, however, appears to have purchased fewer shares, said S&P's Silverblatt in emailed comments. With S&P 500 companies spending $128.16 billion on share buybacks in the third quarter, the S&P 500 index also rose 10% during the fourth quarter. More telling from an earnings standpoint, companies also appear to have issued fewer shares, resulting in lower share counts and higher earnings per share, Silverblatt added.

Buybacks may have peaked, said Brian Belski, chief investment strategist at BMO Capital Markets, but don't expect them to disappear altogether seeing we're still a very long way from a 5% fed rate. Buybacks will still be part of the earnings toolbox for corporate executives, but investors are going to need to start seeing both sales and earnings growing in tandem, he said.

Executives are still playing it conservatively by keeping expectations low, and analysts are likely to play along, Belski said.

That's apparent in the outlook for the coming earnings season. First-quarter earnings are expected to be flat, down from an estimated 4.4% growth rate back on Dec. 31, because of downward revisions, according to John Butters, senior earnings analyst at FactSet.

Profit warnings for the first quarter remain high with 84% company earnings outlooks falling below the Wall Street consensus. Tech and consumer discretionary companies make up a large number of those negative earnings forecasts: 24 out of 32 tech companies are guiding downward, along with 21 out of 23 consumer discretionary companies guiding below the consensus.

A better metric of corporate optimism is reflected in dividend actions, Belski said.

"We believe that companies increase dividend payments only if they think things are going to get better in the future, given the stigma associated with dividend cuts," Belski said in a recent note.

A handful of companies report earnings this week including Walgreen Co. (WAG) , Carnival Corp. (CCL) , Accenture PLC (ACN) , Red Hat Inc. (RHT) , Paychex Inc. (PAYX) , and GameStop Corp. (GME) First-quarter earnings season won't be in full swing until mid-April when J.P. Morgan Chase & Co. (JPM)  reports.

More from MarketWatch:

Here's the corrected results for the Federal Reserve's stress test

Goldman's Hatzius: Yellen made a mistake and the Fed is on hold until 2016

Sunday, June 22, 2014

Why Apple Stock Is a Buy in 3 Charts

Apple (NASDAQ: AAPL  ) stock is up about 20% in the past three months. Zooming out a bit further, it's up about 55% in the past year. But this industry leader sill trades at a price-to-earnings ratio of just 15.3. Compare that to the S&P 500's P/E ratio of 19. Is the stock still a buy, even after the run-up?

Image source: Apple.

While I made the case a few weeks ago that Apple stock was worth $120, based on a conservative discounted cash flow analysis, probably one of the best ways to illustrate the stock's story is through charts. On that note, here are the three most relevant charts that show why the stock is a buy.

Apple's hot China market
The smartphone market is still growing rapidly. In 2013, for instance, global smartphone shipments hit 1 billion, up from 725 million in 2012, according to data from IDC. But one of the greatest opportunities for smartphone manufacturers is undoubtedly in China, the world's largest smartphone market.

And combining smartphones and tablets, the potential for smart devices in the country is simply monstrous.

Data for chart retrieved from Umeng's 2013 report on smartphones and tablets in China.

Of course Apple's smartphone and tablet businesses make up a whopping 74% of the company's total revenue, so the big growth in China in these two markets is especially encouraging for Apple investors.

But is Apple popular enough in the country to benefit from the opportunity? Absolutely. Chinese app analytics firm Umeng (via Benedict Evans) says that 27% of all smartphones sold in China in 2013 were in the $500-plus price range, and 80% of these devices were iPhones.

A conservative valuation
Almost any way you slice it, Apple stock is cheap. Even though analysts predict Apple earnings per share to grow at a rate of about 15% per year, on average, over the next five years, the stock even trades at a discount to other slow-growing cash cows in the tech sector, like Intel and Microsoft.

To illustrate, consider these three stocks, compared on price to free cash flow. The price to free cash flow metric is a useful metric to use because it levels the playing field -- especially for mature companies like these three tech giants.

AAPL Price to Free Cash Flow (TTM) Chart

AAPL Price to Free Cash Flow (TTM) data by YCharts

An aggressive share repurchase program
To help boost earnings in the coming years, Apple is putting its strong cash flow to work in repurchasing its own shares. Consider the difference Apple's repurchases have made so far.

AAPL Average Diluted Shares Outstanding (Quarterly) Chart

AAPL Average Diluted Shares Outstanding (Quarterly) data by YCharts

Fortunately, Apple looks poised to continue repurchasing shares over the long haul. The company announced in April that it had authorized a second significant increase to its share repurchase program, boosting it from $60 billion to $90 billion. Even more, Apple said it planned to utilize this cash by the same end date the program had when it was first announced: the end of calendar 2015.

With a huge opportunity in China, conservative valuation, and aggressive and shareholder-friendly share repurchase program, Apple stock is an excellent bet for long-term investors.

Leaked: Apple's next smart device (warning -- it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee that its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are even claiming that its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts that 485 million of these devices will be sold per year. But one small company makes this gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and to see Apple's newest smart gizmo, just click here!

Booming market for data-driven journalism

A thousand attendees at an annual conference for data-loving journalists packed the halls of a Marriott in Baltimore earlier this month, reveling in the overflowing job postings and employers' sudden embrace of their obsession.

Data-centric journalism, once the domain of a few computer geeks hunched over in remote corners of the American newsroom, is coming to the forefront. With easier-to-use technology available, more data-savvy journalists are pushing the boundaries of what's possible in their niche. Heartened by social media buzz over such stories and prodded by competition hungry for unique content, news organizations are pouring money into recruiting talent and expanding their menu of stories derived from a mix of sophisticated number crunching, explanatory narratives and interactive graphics that weren't possible in the old days of print.

"There's more information now available through more people faster than ever before," says Almar Latour, executive editor of The Wall Street Journal. "There is a lot more flexibility in displaying and telling stories."

Data crunchers have been part of newsrooms since the 1980s, as "computer-assisted reporting" gained traction among editors looking to gain an edge. But the lack of computing power, dearth of talent who could handle data and heavy costs kept the endeavor in check.

"Many tried to make all of their staff more data-literate, but found limited success," says Rich Gordon, a journalism professor at Northwestern University who has launched a program to lure software-savvy students into journalism.

But a confluence of factors has helped mainstream this arcane branch of journalism. The recovering economy is spurring more news business investment, with venture capitalists pouring money into digital journalism and creating lots of openings for savvy data geeks.

Software that processes data and turn them into attractive graphics is cheaper if not free online. Cloud technology — storing information on remote servers — has ! lowered the price of storing massive loads of data.

Among the competitors with data-mining in their mission statements:

• FiveThirtyEight.com. Nate Silver, the journalist best known for this pursuit, on Monday plans to launch his new ESPN-backed site, a byproduct of the fame earned for his eerily accurate prediction of President Obama's victory in the 2012 election.

• The Upshot.The New York Times, which hosted Silver's site until they parted ways last year, will replace it with The Upshot, a policy and economic analysis blog that will emphasize data and graphics and will be headed by the paper's former Washington bureau chief David Leonhardt.

• Vox.com. A brainchild of former Washington Post uber-policy blogger Ezra Klein and published by Vox Media, Vox will launch later this year as an explanatory site that aims to make news more digestible by roasting it "to perfection with a drizzle of olive oil and hint of sea salt," according to its website. Data and graphics will be integral parts of the storytelling. Vox Media raised about $40 million in venture capital shortly before signing Klein.

• The Washington Post, which rejected Klein's request for a reported eight-figure budget to create his own site there, will deal with his departure in part by launching an economics blog by reporter Jim Tankersley. "We're going to tell stories about big things in people's lives that demand policy response," Tankersley says. "Data (will) help us animate those stories."

• The Wall Street Journal, which has always seemed more comfortable with math than its rivals, has several data journalism initiatives on tap. Mike Siconolfi was named investigations editor to preside over a new group that will combine investigative reporters and data reporters under one roof. "Expanding our data reporting capability in a data-rich age is a priority," wrote Gerard Baker, managing editor of The Wall Street Journal, in announcing Siconolfi's appointment.

Path to product differentiation

The! Internet enables news entrepreneurs to launch sites quickly and without burdensome upfront investment. And the success of Web-based organizations that have carved out a market with a unique approach — investigative force ProPublica is a good example — have encouraged others to follow suit.

That the Internet is awash with mindless click bait and the noise of the chattering class creates running room for news outlets to make their marks by offering journalism steeped in evidence, says Alexander Howard, a data journalist who is a fellow at the Tow Center for Digital Journalism at Columbia University. "A lot of people still want to know facts," he says.

The push to ease handling of data has enhanced other layers of storytelling. A small but growing number of newsrooms are assigning teams of reporters and coders to create "data applications" — software written to allow readers to manipulate and handle data on their own. In a well-received project, NPR tasked its team to comb through data and create an application for parents of disabled children to locate wheelchair-friendly playgrounds.

Once an afterthought of editors and reporters preoccupied with flashy leads and story structure, the task of presenting massive data in engaging graphics — data visualization, in industry speak — has also moved up on the priority list.

"You'd have these investigative teams of reporters and editors who talk a lot about (the stories)," says Miranda Mulligan, executive director at Northwestern University's Knight Lab, which teaches digital journalism. "But when the time comes to involve photographers and graphics, a lot of the decisions were already made."

Editors are pushing for those conversations to take place earlier in the process, and designers have help from a wide array of new software that makes it easy to produce maps, timelines and audio-embeds relatively quickly.

"The more you see that readers understand it and share it," Mulligan says, "and you see more and more of it ! go viral,! newsrooms put more resources into it."

Contributing: Paul Overberg

Saturday, June 21, 2014

GM Staff, Media Flagged Ignition Fault Long Before Recall

General Motors Co. To Recall 1.3 Million Vehicles to Repair Steering Jeff Kowalsky/Bloomberg via Getty Images General Motors' own engineers, along with newspaper auto writers, were talking about the ignition switch defect in several GM (GM) models almost a decade before the carmaker announced plans last month to recall 1.6 million vehicles. On June 19, 2005, the New York Times (NYT) reported that Chevrolet dealers were telling Cobalt owners to shed items from heavy key rings so they wouldn't bump the ignition into the off position. The reporter wrote that his own wife had knocked a Cobalt's steering column with her knee and found the engine "just went dead." GM, in a statement at the time, called that scenario rare. The Cleveland Plain Dealer newspaper scorned GM's response as a "knee-slapper." Meanwhile, as early as 2004, two GM engineers involved in the Cobalt said there had been discussions about how the model's engines could cut out when the keys were bumped. In 2005, a Chevy dealer said a customer brought one of the cars back to the dealership, too frightened to drive it. The almost decade-old discussions of the defects -- those voiced publicly as well as within GM -- are contained within more than 32,000 pages of documents and depositions gathered by Lance Cooper, a Georgia lawyer who argued that a Cobalt engine outage years later, in 2010, resulted in a crash that killed a Georgia pediatric nurse. Cobalt, Deaths Documents from the suit, reviewed by Bloomberg News, are coming to light in the weeks after GM recalled the Cobalt and some other small Chevrolet, Pontiac and Saturn vehicles from the 2003 to 2007 model years, that had been involved in accidents killing at least a dozen people. The documents are fueling curiosity over what GM executives could have known about the defect, and are likely to provide insight into GM's answers as it responds to the National Highway Traffic Safety Administration's request to answer, by April 3, 107 questions about its executives knowledge of the defective parts. GM quickly provided NHTSA a timeline of what its executives knew about the faulty ignition switches for the Cobalt and Pontiac G5. Wednesday, it provided a supplemental timeline for complaints it investigated on the Saturn Ion and the three other recalled U.S. models. GM's initial NHTSA timeline was consistent with dates in the Georgia lawsuit, including GM's acknowledgment that employees were aware of the situation in 2004. GM settled the suit with Cooper's clients for an undisclosed amount in September 2013. Tough Claim "It appears that the company did know about this problem. The question is why didn't they do something about it," said Carl Tobias, a law professor at the University of Richmond who studied the recall of Toyotas (TM) tied to sudden acceleration. It will be increasingly difficult for GM to claim its high-level executives were unaware of an issue that appeared in the Times in 2005 and drew a formal media statement, he added. The Justice Department has also opened a probe into whether GM executives violated criminal or civil laws by failing to notify regulators, said people familiar with the action. U.S. House and Senate committees have said they will investigate. GM has said it is cooperating with the probes and has also opened its own internal investigation. GM has said it's sorry about the issue and that it is working to address it quickly. "The chronology shows that the process employed to examine this phenomenon was not as robust as it should have been," GM North America President Alan Batey said in a Feb. 25 statement. The documents GM filed Wednesday indicate the company got an early indication of the ignition-switch problems as it developed the Saturn Ion in 2001. It thought the problem was fixed. Then, in 2003, an engineer investigating a consumer complaint was able to replicate engine stalls while driving. GM ended up using the same switch in the Cobalt, the G5 and three other U.S. models. Redacted Passages The depositions in Cooper's lawsuit included several passages that were redacted as part of what Cooper's firm said was a protective order entered during the GM proceedings. Mark Hood, an engineering expert who was hired by Cooper to look at GM documents and reports, said two GM engineers who were deposed had long known about the ignition-switch issue. Gary Altman, who in his own deposition identified himself as the engineering manager for the 2005 Cobalt, and Ray DeGiorgio, who was the design release engineer for the Cobalt ignition switches, were aware of it as early as 2004, Hood said in the deposition. He testified that Altman experienced the failure when he bumped the ignition with his knee, and said there were meetings and discussion about the flaw prior to the sale of the vehicle in August of 2004. DeGiorgio said in his April 29 deposition that he shut off the ignition of a Cobalt while going about 25 mph in his neighborhood and was able to keep it under control. 30,000 Deaths Greg Martin, a GM spokesman, declined to comment on the depositions or make any of the executives named in them available for comment. While a dozen deaths over a decade is noteworthy in any context, about 30,000 people die as a result of auto accidents each year in the U.S., according to NHTSA. Automakers in the U.S. have recalled more than 38 million vehicles through 1,217 recalls in the past two years, according to NHTSA records. Brian Stouffer, a GM engineer who took over the investigation of the ignition issue in 2011, said in a deposition for Cooper last year that he looked through GM's database and for the 500,000 or so Cobalt models. He said he was able to find about 100 complaints that seemed to meet the criteria. "I have 100 complaints for that, which is a very, very low complaint rate," he said in the deposition. Never Again The first press account cited in Cooper's depositions was a May 26, 2005, review of the 2005 Cobalt appearing in the Daily Item of Sunbury, Pa. "Unplanned engine shutdowns happened four times during a hard-driving test last week," reviewer Gary Heller wrote. "I never encountered anything like this in 37 years of driving and I hope I never do again." The next month in the New York Times, auto reviewer Jeff Sabatini described his wife's misadventure. "During my time with the Cobalt, I encountered the problem once, or rather, my wife did," he wrote in a follow-up article to his review of a Cobalt. "She was driving on a freeway when the car "just went dead,'' in her words. She recalled bumping her knee against the steering column just before the car shut off. She was able to coast to the shoulder of the road, where, once parked, the car started and behaved normally." 'Rare Cases' Sabatini included a comment from a GM spokesman, Alan Adler. "In rare cases when a combination of factors is present, a Chevrolet Cobalt driver can cut power to the engine by inadvertently bumping the ignition key to the accessory or off position while the car is running," Adler said in the article. "Service advisers are telling customers they can virtually eliminate this possibility by taking several steps, including removing nonessential material from their key rings." Writing a week later in the Cleveland Plain Dealer, Chris Jenson quoted from the full GM statement issued following Sabatini's story. "The Cobalt is still controllable" when engine power is cut, the statement read. "The engine can be restarted after shifting to neutral." Wrote Jensen: "So, if you're whisking along at 65 mph or trying to pull across an intersection and the engine stops, that's what you do. Only a gutless ninny would worry about such a problem. Real men are not afraid of temporary reductions in forward momentum." Adler declined a request to make additional comments beyond those GM has offered on the recall. Frightened Owner Cooper also deposed Victor Hakim, identified as working in a GM department that studies how vehicles perform in the field. He testified about 90 incidents in which customers from Alabama to New York brought cars that had been stalling into dealerships. As part of his deposition, Hakim reviewed those statements, including one from a New Jersey service manager who said an owner brought her car to the dealership in April 2005. "This woman is scared to death of this vehicle," the service manager said in a copy of the report read into the deposition. "She takes care of her grandchildren and she is afraid one day she is going to be riding around with them and kill them." Hakim said in the deposition that several GM employees had noted issues with the ignition placement in Saturn Ion models, which are also part of the recall. Tall Employee "On several occasions I inadvertently turned the ignition key off with my knee while driving down the road," a GM employee said in a Feb. 19, 2004, report read as part of the deposition. "For a tall person, the location of the ignition key should be moved to a place that will not inadvertently be switched to the off position." GM described the issue in a so-called technical service bulletin -- a notice to dealers about a potential vehicle issue and a fix that stops short of a recall -- in December 2005. The automaker said the bulletin, which is described in several depositions and in the timeline GM provided to NHTSA, resulted in repairs for 474 customers. In some of the cases Hakim discussed, customers weren't informed of the potential fix, according to the deposition. The interviews with GM engineers show the company knew it had a problem and a solution, Cooper said. "They know the system is defective. People under ordinary driving conditions are having keys turn off. But they decide they're going to say it's safe by blaming the problem on the driver," he said. Detent Plunger In 2013, Cooper won a two-year fight to get access to company documents and learned, he said, that the switch had been changed. Engineers he hired to examine ignition switches discovered that starting in 2006, some cars had incorporated a replacement switch. The switch, while bearing the same part number as the old part, had a bigger and stronger spring than the one pulled from the car of the Georgia pediatric nurse, Brooke Melton. When shown a 2008 ignition switch for a Cobalt that had a design change in a part called a "detent plunger" from what was in the 2005 switch, DeGirogio, the engineer, said no one at GM had approved the change, as far as he knew. "I was not aware of the detent plunger switch change," he said in his April 29, 2013, deposition. "We certainly did not approve a detent plunger design change."

Friday, June 20, 2014

Top 10 US Stocks To Own For 2015

While Apple Inc (APPL) is busy resolving supply chain/logistical issues, the iPad Retina mini production reached a brilliant 4 million. This is not the only good news for Apple. The production of iPhone 5s has also gone up significantly so much so that the company is shipping all variations of the smartphone within 3-5 days. This apart, Foxconn has further boosted production capacity for the iPhone5s as the expense of cheaper iPhone 5c on Apple�� request.

Foxconn, the contract manufacturer based in Taiwan, has around one million workers in China. The company operates approximately 100 production lines across the country at full capacity. According to sources, approximately 3,00,000 workers are dedicated to making components for iPhone 5s which includes components like metal castings. It is also rumored that the company has arranged for about 600 workers for the manufacture of every iPhone 5s in their production facilities.

Apart from Foxconn�� contribution what went in Apple�� favor could have been the following:

Top 10 US Stocks To Own For 2015: Guggenheim CurrencyShares Australian Dollar Trust (FXA)

Guggenheim CurrencyShares Australian Dollar Trust, formerly The CurrencyShares Australian Dollar Trust, is a grantor trust. The Trust issues shares (the Shares) in blocks of 50,000 (a Basket) in exchange for deposits of Australian Dollars and distributes Australian Dollars in connection with the redemption of Baskets. The investment objective of the Trust is for the Shares to reflect the price of Australian Dollars plus accrued interest, if any, less the expenses of the Trust�� operations. The Shares are intended to offer investors an opportunity to participate in the market for the Australian Dollar through an investment in securities. The Shares are bought and sold on New York Stock Exchange (NYSE) Arca like any other exchange-listed security.

The Trust holds Australian Dollars and, from time to time, issues Baskets in exchange for deposits of Australian Dollars and distributes Australian Dollars in connection with redemptions of Baskets. The Sponsor of the Trust oversees the performance of the Trustee and the Trust�� principal service providers. The Sponsor is Rydex Specialized Products LLC. The Sponsor is responsible for payment of administrative and marketing expenses. The Bank of New York Mellon serves as the Trustee. The Trustee is responsible for the day-to-day administration of the Trust, including keeping the Trust�� operational records. JPMorgan Chase Bank, N.A., London Branch is the Depository.

Advisors' Opinion:
  • [By Dr. Duru]

    So, the slight change of wording in the first sentence of the statement is important in that it could be a precursor to other upside adjustments in the RBA's language. If this happens, the Australian dollar (FXA) could take off…exactly what the RBA does not want. In fact, its desire to contain the currency must underlie the strained attempts to contain enthusiasm over the economy.

  • [By Fede Zaldua]

    The easiest way to go short Australia's currency and long the US dollar is through selling Australian dollar's ETF, the Currency Shares Australian Dollar Trust (FXA), which is still held by John Keeley. Even when the ETF is down by 15% since 2013 started, I believe there is still significant downside potential for the currency.

  • [By Dr. Duru]

    The closest real justification for the rate cut comes via the stubbornly high exchange rate of the Australian dollar (FXA) and low credit demand:

    The exchange rate, on the other hand, has been little changed at a historically high level over the past 18 months, which is unusual given the decline in export prices and interest rates during that time. Moreover, the demand for credit remains, at this point, relatively subdued.

Top 10 US Stocks To Own For 2015: Illinois Tool Works Inc.(ITW)

Illinois Tool Works Inc. manufactures a range of industrial products and equipment worldwide. The company?s Transportation segment offers metal and plastic components, fasteners, and assemblies; fluids and polymers; fillers and putties; polyester coatings, and patch and repair products; and truck remanufacturing and related parts and service. Its Industrial Packaging segment offers steel and plastic strapping and related tools and equipment; plastic stretch film and related equipment; paper and plastic products that protect goods in transit; and metal jacketing products. The company?s Food Equipment segment provides warewashing, cooking, refrigeration, and food processing equipment; and kitchen exhaust, ventilation, and pollution control systems. Its Power Systems & Electronics segment provides arc welding equipment; metal arc welding consumables; metal solder materials for PC board fabrication; equipment and services for microelectronics assembly; electronic components an d component packaging; and airport ground support equipment. The company?s Construction Products segment offers anchors, fasteners, and related fastening tools for wood, metal, and concrete applications; metal plate truss components, and related equipment and software; and packaged hardware and other products for retail. Its Polymers & Fluids segment provides adhesives, chemical fluids, epoxy and resin-based coating products, hand wipes and cleaners, and pressure-sensitive adhesives and components. The company?s Decorative Surfaces segment offers laminate for furniture, office and retail space, and countertops; and laminate flooring and worktops. In addition, the company offers plastic reclosable packages and bags, and consumables; plastic and metal fasteners, and components; foil and film products; product coding and marking, paint spray, and static and contamination control equipment; and swabs and mats. The company was founded in 1912 and is based in Glenview, Illinois. Advisors' Opinion:

  • [By Nicole Seghetti]

    Illinois Tool Works (NYSE: ITW  )
    This Illinois-based manufacturer will likely benefit as spending ramps up in transportation and construction, two industries that make up a healthy portion of the company's revenue. Illinois Tool Works holds nearly 20,000 patents, indicating a successful history of innovation. The century-old company boasts a forward price-to-earnings ratio of 13 and a 2.5% dividend yield.�

  • [By Dividends4Life]

    According to a Gabelli Funds report, managed distribution policies offer several advantages, including:1. Lower difference between the fund�� market price and its NAV per share.2. Provides support during periods when the stock market is in a decline.3. Provides a measurable performance target for the investment adviser.Below are several high-yield funds from CEFA that have a managed distribution policy (yields as of December 16):Aberdeen Australia Eqty (IAF)- Distribution Yield: 10.4%- Income Yield: 3.46%Bexil Advisers LLC� (DNI)- Distribution Yield: 11.1%- Income Yield: 3.56%BlackRock En Capital&Inc (CII)- Distribution Yield: 8.78%- Income Yield: 2.34%Cornerstone Strat Value (CLM)- Distribution Yield: 18.77%- Income Yield: 1.83%Cornerstone Total Return (CRF)- Distribution Yield: 19.10%- Income Yield: 0.85%Delaware Inv Div & Inc (DDF)- Distribution Yield: 6.70%- Income Yield: 5.26%Gabelli Equity Trust (GAB)- Distribution Yield: 7.58%- Income Yield: 1.54%Gabelli Utility Trust (GUT)- Distribution Yield: 9.45%- Income Yield: 2.84%MFS Special Value Trust (MFV)- Distribution Yield: 9.60%- Income Yield: 5.73%Nuveen Tx-Adv TR Strat (JTA)- Distribution Yield: 6.70%- Income Yield: 3.12%TCW Strategic Income (TSI)- Distribution Yield: 10.54%- Income Yield: 7.88%Zweig Total Return (ZTR)- Distribution Yield: 7.27%- Income Yield: 1.95%As noted in the Gabelli report, a managed distribution policy may create confusion regarding the true current yield since the reported yield includes the return of capital portion. You can see the disparity above between the income yield and the distribution (reported) yield.If you are looking for a sustainable and growing dividend, you may want to consider some blue-chip dividend stocks such as these with a Free Cash Flow Payout less than 50%, 50+ years of consecutive dividend increases and a 2%+ yield:3M Co. (MMM) is a diversified global company provides enhanced product functionality in electronics, health care, industrial, consumer

  • [By Muhammad Bazil]

    Though GE Capital has been a huge source of revenue for the parent company, its earnings aren�� always seen in the light of income from industrial activities leading to how it has been cheaply perceived among its peers. For example, among GE�� peers in the industrial sector like Honeywell International (HON), United Technologies (UTX), Illinois Tool Works (ITW) and Emerson Electric (EMR), only Illinois Tool Works is cheaper than GE, but it is miles apart in growth potential when compared with GE. So, GE stock trades at a huge discount relative to all of its industrial peers except ITW which is rather odd all because of GE Capital. Though GE Capital has been contributing about 30% of GE�� earnings and, hence, a good percentage of its earnings per share (EPS), shedding GE Capital is the only way to make the industrial segments of GE to strive for better growth in the near future to make up for the original earnings growth of GE facilitated by GE Capital.

Best Mid Cap Companies To Buy Right Now: Mechanical Technology Inc (MKTY)

Mechanical Technology, Incorporated (MTI), incorporated on October 4, 1961, operates in two segments: the Test and Measurement Instrumentation segment, which is conducted through MTI Instruments, Inc. (MTI Instruments), a wholly-owned subsidiary, and the New Energy segment, which is conducted through MTI MicroFuel Cells, Inc. (MTI Micro), a variable interest entity (VIE) as of December 31, 2011. MTI Instruments is a worldwide supplier of precision non-contact physical measurement solutions, portable balance equipment and wafer inspection tools. MTI Micro is developing Mobion, a handheld energy-generating device. Mobion handheld generators are based on direct methanol fuel cell (DMFC) technology. As of December 31, 2011, the Company owned approximately 47.6% of MTI Micro's interest.

The Test and Measurement Instrumentation Segment

MTI Instruments is a worldwide supplier of precision non-contact physical measurement solutions, portable balance equipment and wafer inspection tools. MTI Instrument's products use a range of technologies to solve applications in numerous industries including manufacturing, semiconductor, solar, commercial and military aviation, automotive and data storage. The Company's test and measurement segment has three product groups: Precision Instruments, Semiconductor and Solar Metrology Systems, and Aviation Balancing Systems. The Company's products consist of electronic, computerized gauging instruments for position, displacement and vibration applications for the design, manufacturing/production and test and research markets; metrology tools for wafer characterization of semiconductor and solar wafers; tensile stage systems for materials testing in research and industrial settings; and engine balancing and vibration analysis systems for both military and commercial aircraft.

The Precision Instruments group employs capacitance, laser and fiber optic technologies to make nano-accurate measurements. These advanced sensing and physical measur! ement technologies are used to produce products that range from basic sensors to complete, fully integrated measurement systems, and are available as single sensors for integration into existing data acquisition systems or as complete system level solutions that can be further integrated into a facility wide communication backbone. MTI Instruments' Precision Instruments product offerings & technologies include Accumeasure Family, Microtrak Family, Microtrak II Series, Microtrak Pro-2D, MTI-2100 Fotonic Sensor Series, MTI Tensile Stages, Semiconductor and Solar Metrology Systems, Aviation Balancing Systems, PBS-4100+ /4100R+ Portable Balancing System, TSC-4800A Tachometer Signal Conditioner, and 1510A Calibrator.

The Accumeasure family of products is designed to address the needs of product developers, process engineers, researchers, designers, and others who need measurements. MTI Instrument's Microtrak family of laser triangulation sensors offers displacement, position and vibration measurements. The Microtrak II comes with an interface controller that provides a digital display of the target position, alarm set points and connections for analog and RS-485 outputs. The Microtrak II Stand-Alone Laser Head also uses complementary metal oxide semiconductors with charged coupled device (CMOS - CCD) detection technology. During the year ended December 31, 2011, MTII launched its Microtrak PRO-2D laser triangulation scanners, which provides profile, displacement and dimensional information in real time.

The MTI-2100 features fiber-optic and electronic technologies for precise measurements of displacement, position and vibration. MTI Instruments' miniature tensile, compression and bend testing machines are designed for use in scanning electron microscopes, atomic force microscopes, and light microscopes. The Company's family of wafer metrology systems includes manual and semi-automated systems. The Semiconductor and Solar Metrology Systems include Proforma 200SA/300SA, Proforma 300 a! nd PV-100! 0. The Proforma 300 is a manual tool. The PV-1000 is incorporated into solar cell production lines to help manufacturers determine quality control issues. The computer-based portable balancing systems (PBS) products collect and record aircraft engine vibration data, identify vibration or balance trouble in an engine, and calculate a solution to the problem.

The portable PBS-4100+ detects if an engine has a vibration problem or a trim balance problem and provides a solution, resulting in reduced engine vibration, longer engine life, and lower fuel costs. The PBS-4100R+ rack mounted system offers the same features and functions as the portable PBS-4100+ with added data channels, speed input channels, direct current (DC) outputs and diagnostic options. TSC-4800A Tachometer Signal Conditioner is targeted for operators of Engine Test cells, where accurate and reliable conditioning of speed signals is essential. The TSC-4800A features multiple output circuits that provide more than 10 different signals types for the monitoring devices. The PBS family of products includes a 1510A calibrator - a product that automatically performs a calibration check of the PBS unit which otherwise would take hours.

The New Energy Segment

MTI Micro has been developing an off-the-grid power solution for various portable electronic devices to address this power gap. The Company's DMFC technology platform, called Mobion, converts methanol fuel to usable electricity. The Company's fuel cell power solution consists of two components integrated into a manufactured device: the direct methanol fuel cell power engine, which the Company refers to as its Mobion Chip, and methanol fuel cartridges. MTI Micro is focusing the development of an external power charger product as a standalone device that uses a universal serial bus (USB) interface as a power output connector that can be used to recharge handheld mobile devices. A fuel cell is an electrochemical energy conversion device, which is similar t! o a batte! ry that produces electricity from a liquid or gaseous fuel, such as methanol, and an oxidant, such as oxygen.

The Company competes with KLA-Tencor, Sigma Tech Corporation, E+H Eichhorn+Hausmann GmbH, Chadwick-Helmuth Company, Inc., ACES Systems, Micro-Epsilon, and Keyence Corporation.

Advisors' Opinion:
  • [By John Udovich]

    Small cap Plug Power Inc was formed in 1997 as a joint venture between Michigan utility owner DTE Energy Co (NYSE: DTE) and Mechanical Technology Inc (OTCMKTS: MKTY) to develop fuel-cell systems to power homes and small businesses. Plug Power Inc says it has�revolutionized the material handling industry with cost-effective power solutions that increase productivity, lower operating costs and reduce carbon footprints as�it manufactures a full suite of products designed to fit seamlessly into the existing battery compartment of all major OEM material handling equipment. In addition, the company says its GenDrive fuel cell is a superior alternative to lead-acid batteries for electric lift trucks in the $20 billion�global material handling market.

  • [By John Udovich]

    Meanwhile, Plug Power Inc was formed in 1997 as a joint venture of Michigan utility owner DTE Energy Co (NYSE: DTE) and Mechanical Technology Inc (OTCMKTS: MKTY) to develop fuel-cell systems to power homes and small businesses. Plug Power Inc says it has�revolutionized the material handling industry with cost-effective power solutions that increase productivity, lower operating costs and reduce carbon footprints as�it manufactures a full suite of products designed to fit seamlessly into the existing battery compartment of all major OEM material handling equipment. The company also says that�its GenDrive fuel cell is a superior alternative to lead-acid batteries for electric lift trucks in the $20 billion�global material handling market.

Top 10 US Stocks To Own For 2015: Hillenbrand Inc(HI)

Hillenbrand, Inc. designs, manufactures, distributes, and sells funeral service products to licensed funeral directors operating licensed funeral homes. The company?s products include burial caskets, cremation caskets, containers, vaults, urns, and selection room display fixturing for funeral homes, as well as other personalization and memorialization products and services, including Web-based applications, and the creation and hosting of Websites for licensed funeral homes. It markets its products under the Batesville and Options brand name through direct sales force in the United States, Puerto Rico, Canada, Mexico, the United Kingdom, and Australia. The company also designs, produces, markets, sells, and services bulk solids material handling equipment and systems for various industrial markets, including plastics, food, chemicals, pharmaceuticals, power generation, coal mining, pulp and paper, frac sand, industrial minerals, agribusiness, recycling, wood and forest pr oducts, and biomass energy generation. It offers feeders and pneumatic conveying equipment under the K-Tron brand name; and size reduction equipment, such as hammer mills, double-roll crushers, wood and bark hogs, chip sizers, screening equipment, pneumatic and mechanical conveying systems, storage/reclamation systems, and specialty crushers and other equipment under the Pennsylvania Crusher, Gundlach, and Jeffrey Rader brand names. In addition, the company manufactures dry material separation machines that sort dry, granular products based on the particle?s size serving various industries, including frac sand, potash, urea, phosphates, chemical, agricultural, plastics, and food processing. The company sells its material handling equipment and systems worldwide through a combination of a direct sales force, and a network of independent sales representatives and distributors. Hillenbrand, Inc. was founded in 2008 and is headquartered in Batesville, Indiana.

Advisors' Opinion:
  • [By Laura Brodbeck]

    Tuesday

    Earnings Expected: Buffalo Wild Wings, Inc. (NASDAQ: BWLD), Hillenbrand Inc (NYSE: HI), Sirius XM Holdings Inc. (NASDAQ: SIRI) Economic Releases Expected: German retail sales, French consumer confidence, German unemployment rate, eurozone CPI, eurozone PPI, US trade balance, US redbook

    Wednesday

  • [By GURUFOCUS]

    Hillenbrand Inc. (HI), a diversified industrial company, makes and sells business-to-business products and services for various industries worldwide. Dec. 4, the company increased is quarterly dividend 1.3% to $0.1975 per share. the dividend is payable Dec. 31, 2013, to shareholders of record at the close of business on Dec. 17, 2013. The yield based on the new payout is 2.8%.

Top 10 US Stocks To Own For 2015: Fluor Corporation(FLR)

Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, maintenance, and project management services worldwide. Its Oil & Gas segment offers design, engineering, procurement, construction, and project management services to upstream oil and gas production, downstream refining, chemicals, and petrochemicals industries. This segment also provides consulting services comprising feasibility studies, process assessment, and project finance structuring and studies. The company?s Industrial & Infrastructure segment offers design, engineering, procurement, and construction services to the transportation, wind power, mining and metals, life sciences, manufacturing, commercial and institutional, telecommunications, microelectronics, and healthcare sectors. Its Government segment provides engineering, construction, logistics support, contingency response, management, and operations services to the United States government focusing on the Departme nt of Energy, the Department of Homeland Security, and the Department of Defense. The company?s Global Services segment offers operations and maintenance, small capital project engineering and execution, site equipment and tool services, industrial fleet services, plant turnaround services, temporary staffing services, and supply chain solutions. Its Power segment provides engineering, procurement, construction, program management, start-up and commissioning, and operations and maintenance services to the gas fueled, solid fueled, plant betterment, renewables, nuclear, and power services markets. The company also offers unionized management and construction services in the United States and Canada. Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas.

Advisors' Opinion:
  • [By Rich Duprey]

    South America has become an unsettled region to mine in. Newmont Mining (NYSE: NEM  ) had its Peruvian Conga project brought to a short stop over environmental concerns, while Vale (NYSE: VALE  ) recently abandoned an Argentinean project because of the country's policies.�Costs for Pascua-Lama have ballooned over the past decade and now stand at about $8.5 billion, putting it at risk of becoming an albatross around the miner's neck even before the court decision. Barrick even resorted to bringing in engineering specialist Fluor (NYSE: FLR  ) to expand the scope of its project management before the court order.

  • [By Reuben Brewer]

    Cameco (NYSE: CCJ  ) has a lot invested in the future growth of nuclear power. And it expects good things, particularly in Asia. However, nuclear power has older plants (built decades ago) that need to be cleaned up. That's where companies like Fluor (NYSE: FLR  ) can make a buck.

  • [By Editor , ETFChannel.com]

    CAT operates in the Construction sector, among companies like Deere (DE) which is up about 0.1% today, and Fluor (FLR) trading lower by about 0.6%. Below is a three month price history chart comparing the stock performance of CAT, versus DE and FLR.

Top 10 US Stocks To Own For 2015: Airbus Group NV (EADSY)

Airbus Group NV, known as European Aeronautic Defence and Space Company EADS NV, is a Netherlands-based company active within the aerospace and defense sector. The Company manufactures aircrafts, helicopters, commercial space launch vehicles, missiles, satellites, defense systems and defense electronics, and offers services related to these activities. The Company oprates four divisions. The Airbus division comprises the Airbus Commercial and Airbus Military segments, which develop, manufacture, market and sell commercial jet aircrafts, military transport aircrafts and special mission aircrafts, among others. The Eurocopter division develops, markets and sells civil and military helicopters. The Astrium division develops, manufactures and sells satellites, orbital infrastructures and launchers, as well as provides space-related services. The Cassidian division develops, manufactures and sells missiles systems, military combat and training aircrafts, among others. Advisors' Opinion:
  • [By Katie Spence]

    A large portion of that commercial revenue comes from commercial airline sales. In fact, there's an estimated $100 billion-a-year jet market, for which a number of plane manufacturers compete. However, in the midst of that competition, Boeing is one of the top dogs and really sees major competition only from European Aeronautical Defense and Space's (NASDAQOTH: EADSY  ) Airbus. The rivalry between these two giants is intense, to say the least, because commercial airline revenue has a key impact on the companies' bottom line. �

  • [By Ben Levisohn]

    Shares of Boeing have gained 1.9% to $127.89 at 2:07 p.m. today, but are still off 6.3% so far this year. Shares of Airbus (EADSY) have dropped 5.4% this year after rising 1.3% to $18.19 today, while Embraer’s (ERJ) 0.7% rise today puts it up 11% in 2014.

Top 10 US Stocks To Own For 2015: Powershares Water Resource Portfolio (PHO)

PowerShares Water Resources Portfolio (the Fund) seeks investment results that correspond generally to the price and yield of an equity index called the Palisades Water Index (the Index). The Palisades Water Index includes water companies drawn from sectors, which include water utilities, treatment, analytical and monitoring, infrastructure and distribution, water resource management, and conglomerate water companies. The Index includes companies that focus on the provision of potable water, the treatment of water and the technology and services that are directly related to water consumption. The Palisades Water Index was created by Hydrogen Ventures, LLC.

The Fund will normally invest at least 80% of its total assets in American depositary receipts (ADRs) and common stocks of companies in the water industry. For purposes of this 80% policy, a company will be considered to be in the water industry if at least 50% of its revenues come from water-related activities. The Fund will normally invest at least 90% of its total assets in ADRs and common stocks that comprise the Index. The Fund, using an indexing investment approach, attempts to replicate the performance of the Index. The Fund generally will invest in the stocks comprising the Index in proportion to their weightings in the Index. The Fund�� investment advisor is PowerShares Capital Management LLC.

Advisors' Opinion:
  • [By Aaron Levitt]

    Given just how many different water stocks there are, investors may be better suited in a broad portfolio. With nearly $1 billion in assets, the PowerShares Water Resources (PHO) is the largest exchange-traded fund (ETF) that covers the sector.

Top 10 US Stocks To Own For 2015: POWERSHARES DYNAMIC BLDG & CONSTR PORT (PKB)

PowerShares Dynamic Building & Construction Portfolio (the Fund) seeks investment results that correspond generally to the price and yield of an equity index called the Dynamic Building & Construction Intellidex Index (the Building & Construction Intellidex). The Building & Construction Intellidex consists of stocks of 30 United States building and construction companies. These are companies that are primarily engaged in providing construction and related engineering services for building and remodeling residential properties, commercial or industrial buildings, or working on large-scale infrastructure projects, such as highways, tunnels, bridges, dams, power lines and airports. These companies may also include manufacturers of building materials for home improvement and general construction projects, and specialized machinery used for building and construction; companies that provide installation/maintenance/repair work, and land developers. Stocks are selected principally on the basis of their capital appreciation potential as identified by the AMEX (the Intellidex Provider) pursuant to an Intellidex methodology. The Fund�� investment advisor is PowerShares Capital Management LLC.

The Fund, using an indexing investment approach, attempts to replicate the performance of the Building & Construction Intellidex. The Fund generally will invest in all of the stocks comprising the Building & Construction Intellidex in proportion to their weightings in the Building & Construction Intellidex. The Fund will normally invest at least 80% of its total assets in common stocks of building and construction companies. It will normally invest at least 90% of its total assets in common stocks that comprise the Building & Construction Intellidex.

Advisors' Opinion:
  • [By John Udovich]

    Small cap building materials stock NCI Building Systems Inc (NYSE: NCS) fell yesterday after announcing a share offering plus its investors have (so-far) missed out on any ��ecovery��in construction���meaning it might be time to take a closer look at the stock along with potential performance benchmarks like the PowerShares Dynamic Building & Construction ETF (NYSEARCA: PKB) and the First Trust ISE Global Engineering and Construction Index Fund ETF (NYSEARCA: FLM)���both of which have had decent returns in recent years.

Top 10 US Stocks To Own For 2015: Wisconsin Energy Corporation (WEC)

Wisconsin Energy Corporation engages in the generation, distribution, and sale of electric energy and steam. The company also involves in the purchase, distribution, and sale of natural gas to retail customers, as well as in the transportation of customer-owned natural gas in Wisconsin. It generates electricity from coal, natural gas, wind, and hydro sources. The company offers its services under ?We Energies? name. It serves approximately 1,120,200 electric customers in Wisconsin and the Upper Peninsula of Michigan; approximately 1,064,500 gas customers in Wisconsin; and approximately 460 steam customers in metropolitan Milwaukee, Wisconsin. In addition, the company invests and develops in real estate properties, including business parks and other commercial real estate projects primarily in southeastern Wisconsin. It provides electric utility service to industries, such as mining, paper, foundry, food products, and machinery production, as well as to retail chains. The c ompany was founded in 1981 and is based in Milwaukee, Wisconsin.

Advisors' Opinion:
  • [By Jake L'Ecuyer]

    Leading and Lagging Sectors
    Utilities sector was the only gainer in the US market on Friday. Leading the sector was strength from FirstEnergy (NYSE: FE) and Wisconsin Energy (NYSE: WEC). Technology shares declined around 1.53 percent in Friday's trading.

Top 10 US Stocks To Own For 2015: Pitney Bowes Inc(PBI)

Pitney Bowes Inc. provides mail processing equipment and integrated mail solutions worldwide. It offers a suite of equipment, supplies, software, services, and solutions for managing and integrating physical and digital communication channels. The company?s Small & Medium Business Solutions group engages in the sale, rental, and financing of mail finishing, mail creation, and shipping equipment and software; provision of supply, support, and other professional services; and provision of payment solutions. Its Enterprise Business Solutions group sells, supports, and offers other professional services for high-speed production mail systems, and sorting and production print equipment; and sells and provides support services for non-equipment-based mailing, customer relationship and communication, and location intelligence software. This group also offers facilities management services; secure mail services; reprographic document management services; and litigation support and eDiscovery services, as well as provides presort mail services and cross-border mail services; and direct marketing services. Pitney Bowes Inc. markets its products and services through its sales force, direct mailings, outbound telemarketing, and independent distributors and dealers to various business, governmental, institutional, and other organizations. The company, formerly known as Pitney Bowes Postage Meter Company, was founded in 1920 and headquartered in Stamford, Connecticut.

Advisors' Opinion:
  • [By Rick Aristotle Munarriz]

    AP, Showtime From a high-end apparel retailer making a down-market move to the leading video service adding to its growing library, here are the wonders and blunders of the week. Amazon.com (AMZN) -- Winner Apple (AAPL) may have hit the market with the new iPad Air on Friday, but it was Amazon making the most of the launch -- to promote its own platform. Amazon has spent most of the week pushing its new 8.9-inch Kindle Fire HDX tablet at the top of the popular e-tailer's home page, pitting it against the iPad Air. Amazon points out that its Kindle Fire HDX is 20 percent lighter, packs 950,000 more pixels, and will set shoppers back $120 less than the somewhat comparable iPad Air. You have to admire Amazon's moxie here. Apple just moved more than 14 million iPads in its latest quarter -- and that was the older models during a non-holiday quarter. Amazon's willing to butt heads with the top brand in tablets, and it's doing it on a site that it knows will be getting very busy in the coming weeks as holiday shoppers begin to research the best tablet to buy this season. Well played, Amazon. lululemon ahtletica (LULU) -- Blunder When it comes to selling high-end yoga clothing, no one does it as well as lululemon athletica. Sure, there was that embarrassing episode earlier this year where its black Luon yoga pants were too sheer, resulting in the departure of its head of merchandising. However, how do you justify filling that opening by bringing in Kmart's head of apparel to be your new chief products officer? Kmart has struggled with years of declining comps, and it's a lackluster discount department store chain. Even if she was more than qualified for the gig, investor -- and more dangerously customer -- perceptions may mark down lululemon's image. Pitney Bowes (PBI) -- Winner Metered mail may be a fading industry, but that didn't stop Pitney Bowes from hitting a fresh 52-week high this week after posting encouraging quarterly results. The key here is tha

  • [By John Divine]

    Communication equipment and mail logistics company Pitney Bowes (NYSE: PBI  ) rounds out today's list, having shed 2.9%. Shares enjoyed a brief boost earlier this week, and even made it on the day's 3 Best Stocks list, when the company appointed Roger Pilc as its Chief Innovation Officer on Tuesday. Pilc has direct experience directing market share growth at CA Technologies, an enterprise management software provider. Despite the fresh look, it appears the excitement has already worn off as investors, once again, face the bleak future in direct mail-related services.

  • [By Jim Woods]

    While the company still plans to dole out dividends, it is altering 2013 payments that were slated to be paid out next year. For one, the cash payment due in January was cancelled. Also, BBVA said it would increase the dividend payout due in April to help compensate for the January suspension, but in the end, BBVA stock will end up cutting its total payouts from 2013 from 0.42 euros to 0.37 euros.

    Pitney Bowes (PBI)

    What do you do when you��e essentially a print-oriented company trapped in a digital world?

  • [By Chuck Saletta]

    Watch that dividend quality
    Similarly, by putting quality controls around a company's dividend and ability to pay it, the iPIG portfolio was able to miss one of the largest recent dividend blow-ups, Pitney Bowes (NYSE: PBI  ) . The company slashed its dividend in half last week, but before that cut, it had a 30-year history of regularly raising its dividend.

Pot, guns, $40K among accidental charity donations

Talk about being generous to a fault.

Charitable donors have accidentally given away stacks of cash and valuable jewelry by simply not checking clothing pockets, shoe boxes and furniture drawers before handing off their goods.

Last week, $2,500 was found in a donation to a Glen Carbon, Ill., Goodwill store. About $40,000 turned up at a Goodwill in Monroe, Mich., in late January.

In just the last two years, about $20,000 in accidental donations came into the 42 stores and five separate sites in the MERS Goodwill system, which includes the Glen Carbon store and others in the St. Louis area.

Add in mistaken donations since 2008, and the figure rises to about $37,000, says the group.

Sugarcreek Borough, Pa., Police Chief Matt Carlson says that in addition to jewelry and money, his local Salvation Army has found guns and knives that were apparently donated by mistake. The store also had a very surprising discovery in February: a bag of marijuana.

"It was packaged for distribution," says Carlson, who doubts the owner will come forward to reclaim it.

Charity group workers say donors sometimes forget to check the inside of pockets and pocketbooks before they drop off goods. Some contributors inadvertently pick up valuables from their car trunks while scooping up other items to be donated.

Accidental offerings also arrive when someone brings in the belongings of a person who had died or moved away, says Michael Meyer, vice president of donated goods retail for Goodwill Industries International.

The approximately $40,000 that turned up in Monroe, Mich., belonged to an elderly man. He was moving to a nursing home and a relative who helped to clean out the man's belongings didn't realize there was cash tucked into the clothes.

"On a daily basis, we find change in a pocket or purse, maybe a couple dollars at most. But nothing even close to this amount," says Tyler Gedelian, a store manager who found the bulk of the money in the pocket of a robe. The res! t was found in suit jackets.

Among Gedelian's first thoughts: "This could be somebody's life savings or an important nest egg."

His next step: contacting local police, who used an identity card also found in the clothing to locate the owner and return the cash.

Police are still seeking the person who dropped off the $2,500 in Glen Carbon.

The stacks of bills found by workers going through donated clothing at the Monroe Goodwill store in Monroe, Mich.(Photo: The Monroe Evening News, Kim Brent/AP)

Both Goodwill and the Salvation Army say they do their best to return items that appear to have been donated by mistake.

Cissy Altevogt, store manager at the Goodwill who discovered the $2,500 last Monday, says this is the third time her store has gotten big bucks in an unintentional donation. In 2011, workers found $2,500, and in 2008 about $7,500 turned up.

"We found the rightful owner the last two times," says Altevogt, who offers this advice to the philanthropic: "Make sure you check your pockets and the drawers and inside books" prior to dropping off any goods.

Her tips are timely. "With spring cleaning right around the corner, donations will start to pick up," says Monroe, Mich., Goodwill store manager Gedelian.

Thursday, June 19, 2014

3 Stocks Under $10 Making Big Moves

DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

>>3 Huge Stocks on Traders' Radars

Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.

Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.

>>5 Stocks With Big Insider Buying

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside.

SouFun

SouFun (SFUN) operates a real estate Internet portal, and a home furnishing and an improvement Web site in the People's Republic of China. This stock closed up 5.9% to $9.40 in Wednesday's trading session.

Wednesday's Range: $8.76-$9.50

52-Week Range: $4.60-$19.94

Wednesday's Volume: 8.36 million

Three-Month Average Volume: 7.98 million

From a technical perspective, SFUN spiked sharply higher here right above some near-term support at $8.52 with above-average volume. This stock has been downtrending badly for the last three months and change, with shares moving lower from its high of $19.94 to its recent low of $8.52. During that downtrend, shares of SFUN have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of SFUN are now starting to spike higher off that $8.52 low with strong upside volume. This move could be signaling that SFUN is ready to a short-term reversal trade to the upside.

Traders should now look for long-biased trades in SFUN as long as it's trending above its recent low of $8.52 and then once it sustains a move or close above Wednesday's intraday high of $9.50 to more resistance at $10 with volume that hits near or above 7.98 million shares. If that breakout hits soon, then SFUN will set up to re-test or possibly take out its next major overhead resistance levels at $11 to its 50-day moving average of $11.87, or even $13.

EveryWare Global

EveryWare Global (EVRY) provides tabletop and food preparation products for the consumer, foodservice and specialty markets. This stock closed up 3% to $1.35 in Wednesday's trading session.

Wednesday's Range: $1.33-$1.39

52-Week Range: $0.67-$13.74

Wednesday's Volume: 144,000

Three-Month Average Volume: 264,980

From a technical perspective, EVRY bounced notably higher here right above some near-term support at $1.25 with lighter-than-average volume. This stock recently formed a double bottom chart pattern at $1.26 to $1.25. Following that bottom, shares of EVRY have now started to spike higher and move within range of triggering a major breakout trade. That trade will hit if EVRY manages to take out some key near-term overhead resistance levels at $1.45 to $1.60 with high volume.

Traders should now look for long-biased trades in EVRY as long as it's trending above those double bottom support levels and then once it sustains a move or close above those breakout levels with volume that hits near or above 264,980 shares. If that breakout gets underway soon, then EVRY will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $2.08 to $2.44.

Imris

Imris (IMRS) designs, manufactures and sells image-guided therapy solutions that enable surgeons to obtain information and make decisions during the course of procedures. This stock closed up 3.8% to $1.07 in Wednesday's trading session.

Wednesday's Range: $1.02-$1.10

52-Week Range: $0.79-$3.40

Wednesday's Volume: 287,000

Three-Month Average Volume: 268,972

From a technical perspective, IMRS bounced sharply higher here right off some near-term support at $1 with above-average volume. This stock has been uptrending a bit for the last few weeks, with shares moving higher from its low of 79 cents per share to its intraday high of $1.10. During that uptrend, shares of IMRS have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of IMRS within range of triggering a big breakout trade. That trade will hit if IMRS manages to take out Wednesday's intraday high of $1.10 to its 50-day moving average of $1.17 and then once it clears more resistance at $1.20 with high volume.

Traders should now look for long-biased trades in IMRS as long as it's trending above some key near-term support at $1 and then once it sustains a move or close above those breakout levels with volume that hits near or above 268,972 shares. If that breakout materializes soon, then IMRS will set up to re-test or possibly take out its next major overhead resistance levels at $1.33 to $1.52, or even its 200-day moving average of $1.60.

To see more stocks that are making notable moves higher, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>5 Stocks Set to Soar on Bullish Earnings



>>5 Retail Stocks to Trade for Gains in June



>>3 Big-Volume Stocks to Trade for Breakouts

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com.

You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.


Lululemon Athletica Is a Turnaround That Investors Shouldn't Miss

Lululemon Athletica (LULU) is facing troubled times and the stock has declined around 35% since March 2013. It all started with the controversy of see-through yoga pants, and it has been more than a year since it recalled those pants. Yet, there seems to be no relief for the athletic apparel and yoga wear company.

Lululemon has to face tough competition from its peers such as Under Armour and Gap, and with the current issues that Lululemon is facing, it would be very difficult for the company to move forward. However, management has taken various initiatives to turnaround its present situation.

Trying for a turnaround

The company has great expectations from the men's active wear market. According to Lululemon CEO Laurent Potdevin, "The company is ambitiously looking to tap the men's activewear market." Although Wall Street expects Lululemon's men's business to be around $200 million, but the company's anticipations are way ahead than Wall Street and believes that the men's business would be worth $1 billion in the next few years.

The company is also working hard to bring its women's business on track. It has launched a new clothing line, known as &Go, that can be worn all day long. The company claims that the dress is designed in a way that whether you are in a gym or club, it can be worn anywhere. Lululemon is trying to strengthen its foundation by boosting its product line and is also seeking opportunities for international expansion.

Going forward, Lululemon is anticipating more demand from Asia and Europe. As a result, it has plans to open more stores in Asia, where it already has stores at six locations. There would also be a change in the company's Asian management, as it is searching for a new manager for its Asian operations. We can expect that with this new change in its top management, development in the region will pick up.

Expansion plans

Lululemon has similar expansion plans in Europe as well, and the company has opened its first store in London. The company has generated a strong buzz around the brand by hosting a Yoga event at the Royal Opera House. The response was fascinating as more than 9,700 people turned up for the event, but there were only 350 spots. This reflects the company's strong marketing activities and brand equity. And with such a fascinating response, the company has decided to open its second store in London by the end of the year.

Lululemon is also working on its product mix with focus on both seasonal and core products. Its new Chief Product Officer is working hard, looking at every aspect of product improvement. The company observed considerable increase in demand for its seasonal products in North America as they are selling at four times the anticipated rate. So, the company can be expected to focus more on this category.

Some concerns

However, there are some serious issues, which the company has to immediately address. One of them is its negative same-store sale performance. In the fourth quarter, the company's same-store sales were down 2%. The company has struggled in this area since the controversy of see through pants, which gave its rivals such as Under Armour and Gap room to eat into Lululemon's market with their own products.

Under Armour has tried to take maximum advantage of Lululemon's blunder last year by promoting its UA Studiolux Quattro collection aggressively. The company currently has a budget of $250 million to spend on advertising. Moreover, it might be possible that Under Armour was able to woo customers away from Lululemon by advertising that its yoga pants never pill. So, Under Armour is a potent threat that Lululemon needs to watch out.

Conclusion

But, all is not lost for Lululemon and management is positive about its future prospects. It sees 2014 as an investment year, and expects to come out strong as a result of its aggressive strategies and improved product mix. Analysts expect its earnings to grow at a compounded annual growth rate of almost 17% for the next five years. Considering these factors, we can assume that the company will bounce back.

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Mid-Afternoon Market Update: Fed Tapers Another $10B; Will Purchase $15B/Month Of MBS & $20B Per Month Of Treasuries

Related KEP Mid-Day Market Update: US Stocks Slide Ahead Of Fed Decision; Adobe Shares Spike Higher Mid-Morning Market Update: Markets Mostly Flat; FedEx Results Top Street View

In the final hour of trrading Wednesday, the Dow traded up 0.40 percent to 16,769.00 while the NASDAQ increased 0.37 percent to 4,353.27. The S&P gained 0.54 percent to 1,952.56.

Leading and Lagging Sectors

On Wednesday, the utilities sector proved to be a source of strength for the market. Leading the sector was strength from Korea Electric Power (NYSE: KEP) and Pure Cycle (NASDAQ: PCYO).

In trading on Wednesday, financial shares were relative laggards, down on the day by about 0.24 percent. Top losers in the sector included IRSA Investments and Representations (NYSE: IRS), down 3.2 percent, and OceanFirst Financial (NASDAQ: OCFC), off 2.5 percent.

Top Headline

The Federal Reserve tapered its monthly purchases by a total of $10B and kept it's benchmark rate unchanged at 0-25 bps. The Central Bank also issued expectations of continued contraction in the unemployment rate along with increases in inflation over the next two years. Inflation is still below expected levels.

Equities Trading UP

Insmed (NASDAQ: INSM) shares shot up 40.31 percent to $17.49 after the company announced that the FDA granted Arikayce breakthrough therapy designation.

Shares of Adobe Systems (NASDAQ: ADBE) got a boost, shooting up 8.17 percent to $73.06 after the company reported stronger-than-expected second-quarter earnings. Adobe reported its adjusted earnings of $0.37 per share, beating analysts’ estimates of $0.30 per share.

Air Products & Chemicals (NYSE: APD) shares were also up, gaining 7.17 percent to $130.32 after the company named Rockwood's Seifi Ghasemi as its new chairman, president and CEO.

Equities Trading DOWN

Shares of La-Z-Boy (NYSE: LZB) were 8.62 percent to $22.70 after the company reported downbeat fourth-quarter revenue. The company also announced its plans to stop production at Hudson plant this year. Its same-store sales declined 0.9% in the quarter, versus an 11.2% gain in the year-ago quarter.

NGL Energy Partners LP (NYSE: NGL) shares tumbled 7.14 percent to $42.41 after the company priced an offering of 8 million shares at $43.85 per share.

ConAgra Foods (NYSE: CAG) was down, falling 7.34 percent to $30.44 after the company lowered its forecast and said it would miss Q4 estimates.

Commodities

In commodity news, oil traded down 0.15 percent to $105.71, while gold traded down 0.09 percent to $1,273.10.

Silver traded up 0.45 percent Wednesday to $19.82, while copper fell 0.13 percent to $3.07.

Eurozone

European shares were mostly higher today.

The eurozone’s STOXX 600 dropped 0.08 percent, the Spanish IBEX Index gained 0.49 percent, while Italy’s FTSE MIB Index rose 0.15 percent.

Meanwhile, the German DAX gained 0.10 percent and the French CAC 40 fell 0.33 percent while UK shares gained 0.17 percent.

Economics

The MBA reported that its index of mortgage application activity dropped 9.20% in the week ended June 13.

The US current account deficit rose to $111.20 billion in the first quarter, versus $87.30 billion in the fourth quarter. However, economists were expecting a deficit of $97.0 billion.

Crude inventories fell 579,000 barrels in the week ended June 13, the Energy Information Administration reported. However, analysts were expecting for a decline of 1.4 million barrels.

Posted-In: Earnings News Eurozone Futures Commodities Economics Federal Reserve Intraday Update Markets

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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