Why stocks are in for a rough ride this week
Stocks in for a rough ride this week

Longtime market bull Jeremy Siegel says investors could realize the market is behind the curve on interest rates.

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In the current climate, a good defense can be your best offense.

By MoneyShow.com Feb 3, 2012 12:37PM

Image: Baker (© Blend Images/SuperStock)By Elliott Gue, Personal Finance


Investors are caught between a rock and a hard place. Yields offered by traditional safe havens, such as U.S. Treasury bonds and high-grade corporate debt, are near multi-year lows.


Meanwhile, ongoing concerns about the E.U. sovereign debt crisis and the U.S. economy have made investors reluctant to roll the dice on equities. That's given legs to the rally in high-quality, large-cap stocks.

 

Goldman upgrades Eastman Chemical and downgrades Vertex Pharmaceuticals.

By MSN Money Partner Feb 3, 2012 12:33PM
Information provided by Theflyonthewall.com

Firday's noteworthy upgrades include:
  • Urban Outfitters (URBN) upgraded to Buy from Neutral at Janney Capital
  • Liberty Interactive (LINTA) upgraded to Overweight from Equal Weight at Morgan Stanley
  • National Oilwell (NOV) upgraded to Overweight from Equal Weight at Morgan Stanley
 

Employment report shows a decline in the number of jobs in financial activities.

By Jonathan Berr Feb 3, 2012 12:08PM
CorbisThe unemployment rate tumbled to a three-year low in January, but some workers on Wall Street may not feel like celebrating.

Government data released Friday showed that a better-than-expected 243,000 jobs were created last month and the unemployment rate fell to 8.3%. Yet, the report also showed that the financial services sector lags the rest of the economy.  
Tags: BACCGSMS

The Canadian oil producer offers a high yield, strong growth and low risk.

By TheStockAdvisors Feb 3, 2012 10:53AM
Comstock/CorbisBy Lou Gagliardi, Cabot Global Energy Investor

My latest featured stock pick is Baytex (BTE), a leading Canadian heavy-oil producer with an exceptional dividend to provide downside share support in a rocky market. 

Geopolitical tensions, i.e. Iran, continue to rear their ugly head and reinforce our bullish outlook for crude prices and the energy sector. 
Tags: BTEoil

The president may not deserve the credit, but these companies have thrived since he took office.

By InvestorPlace Feb 3, 2012 10:26AM

Cory Docken/Spots Illustration/JupiterimagesBy Jeff Reeves


There's a lot of bluster this election year about the economy and President Barack Obama's effect on jobs and the stock market. But what you may not realize is that many comparisons aren't exactly fair.


Yes, in November 2008 when Obama won the election, unemployment was just shy of 7%, and when he took office in January it was under 8%. But comparing our current unemployment rate of 8.3% to what things were like when the president took office isn't so simple. After all, the financial crisis was really only beginning in late 2008, and the Great Recession didn't peak until mid-2009.

 

The closure of Petroplus and other key refineries should tighten the industry surplus situation.

By Trefis Feb 3, 2012 10:15AM
Chris Knorr/Design Pics/CorbisChevron (CVX) and other vertically integrated oil majors like Exxon Mobil (XOM) and British Petroleum (BP) could begin to see margins from their struggling downstream businesses rise in Q1 2012 as independent refining plants across the U.S. and Europe close down. Dropping margins have resulted in the closure of Petroplus, the largest refinery in Europe, and other key refineries, and this should tighten the industry surplus situation. Chevron and other oil companies reported a drastic fall in refining margins in Q4 2011 and lower volumes because of high crude prices.

We have a $109 price estimate for Chevron, which is at a 5% premium over its current market price.

 
Tags: bpCVXXOM

The company's Bydureon diabetes shot finally gets the green light from regulators.

By Benzinga Feb 2, 2012 10:18PM

Image: Medical doctor (© tetra images/Getty Images/Getty Images)By Scott Rubin, Benzinga Staff Writer


Last Friday, the Food and Drug Administration finally approved Bydureon, a once-weekly diabetes shot developed by Amylin Pharmaceuticals (AMLN) and Alkermes PLC (ALKS).


Bydureon is a long-acting form of Byetta, a twice-daily injection developed by Amylin and Eli Lilly & Co. (LLY) in a partnership which was dissolved last year. The drug had been rejected twice before, which caused Amylin to lose nearly half of its market value in October 2010.

 

The company's quarter was propelled by strong sales in its engine segments.

By Jim J. Jubak Feb 2, 2012 9:54PM
So much for any worries about that quarter.

Thursday, before the market opened in New York, Cummins (CMI) announced fourth-quarter earnings of $2.56 a share (excluding non-recurring items). Cummins is a member of my Jubak’s Picks portfolio

That was a 55.4% increase from earnings of $1.84 in the fourth quarter of 2010. The earnings results beat Wall Street estimates by 29 cents a share. (Much of this beat -- 18 cents -- came from a favorable change in the company’s tax rate. But an 11 cents-a-share surprise isn't shabby.)
 
Tags: CMI

The transportation company expects good results from strong commercial rentals and used-vehicle sales.

By Zacks.com Feb 2, 2012 5:19PM

Image: Moving van (© Digital Vision/Getty Images/Getty Images)By: Zacks Equity Research


Transportation company Ryder System (R) reported fourth-quarter adjusted earnings of 97 cents -- in line with the Zacks Consensus Estimate and up 49% from 65 cents a year earlier.


The year-over-year growth reflected accelerated organic growth in the company's commercial rental and supply chain businesses alongside acquisitions gains, improved asset use and higher used-vehicle sales. Adjusted earnings exclude a negative impact of 5 cents related to post-acquisition restructuring costs.

 
Tags: R

Pundits complain that this earnings season has been a bust, but companies that disappointed have actually held up -- or even rallied -- since blowing their quarters.

By Jim Cramer Feb 2, 2012 4:38PM

the streetWhat's the definition of a strong tape? How about Boeing (BA) being up huge while the Pentagon surprises with a big cutback on an important program? How about Navistar (NAV) rallying huge despite preannouncing a shortfall because of a deal with Clean Energy (CLNE) (which I actually announced a week ago)?


And is anyone in?

 

After suffering higher pump prices, consumers could be due for some relief.

By Anthony Mirhaydari Feb 2, 2012 4:19PM

A few weeks ago, I warned that pain was coming to the pump as gas prices were set to climb. Sure enough, wholesale prices have climbed 17% from their December low.

 

The catalyst was a closing of the disconnect between crude oil and gasoline. There was just no way Big Oil was going to let its downstream refinery margins stay pinched. Crude oil climbed in October and November on Wall Street speculation and a weaker dollar and has remained elevated on geopolitical concerns and Iranian saber rattling. Gasoline kept dropping during the period but has since made up for lost time.

 

Things are about to change as crude oil drops out of its recent trading range and the dollar stabilizes. With this looking to be the beginning of a new downtrend, it should take the upward pressure off gas prices.

 

The retailer's stock price plummets after it gives disappointing guidance for the year.

By Kim Peterson Feb 2, 2012 4:08PM
Image: Woman looking at mannequins in boutique, smiling © Michael Hitoshi/Digital Vision/Getty ImagesRetailers are having a fantastic 2012. Except for one.

Abercrombie & Fitch (ANF) can't get its act together. The stock was down more than 11% Thursday after the company said it whiffed the fourth quarter.

In an earnings preannouncement, the retailer said it expects profit of between $1.10 and $1.15 a share -- far below the $1.55 per share that analysts expected. 
Tags: ANFGPSTGT

While economic news could trigger a correction, the mid-term trend for small-cap stocks remains positive.

By MoneyShow.com Feb 2, 2012 3:22PM
Image: Stock market (© Zurbar/age fotostock)By Tom Aspray, MoneyShow.com


Disappointing jobs figures and other signs of economic weakness may have been enough of the "bad news" I have been looking for since last week. 


Wednesday's ADP employment report showed 170,000 new jobs were created in January. The increase was less than forecast and followed a downward revision of the December figure. Meanwhile, the American Association of Individual Investors (AAII) sentiment survey shows the bullish percentage dropping from 48.4% to 43.8%, and the number of bears jumping by 6%. The market now seems to be holding its breath ahead of Friday's monthly jobs report.

 

Resource and construction industries are the primary growth drivers for the heavy machinery maker.

By Trefis Feb 2, 2012 2:29PM
Image: Construction (© Photodisc Green/Getty Images)Caterpillar (CAT) recorded the highest quarterly sales in its history and took profitability to new heights in its recent earnings announcement. For this quarter, Caterpillar revenue stood at $17.24 billion, up 35% from $12.81 billion a year earlier.

The sales were positively affected by the company's acquisitions,  which accounted for more than $1.5 billion in sales. Operating profits also increased from $1.29 billion in the last year quarter to $1.96 billion in this quarter, up by 52%. This could have been even higher but was offset by higher manufacturing costs and foreign currency fluctuations. 
Tags: CAT

The better-known price-to-earnings ratio isn't the only measure to watch.

By TheStockAdvisors Feb 2, 2012 1:57PM
Image: Money and computer (© Angel Muniz/Jupiterimages)By Richard Moroney, Dow Theory Forecasts

In addition to the better-known price-to-earnings ratio, we like to use price-to-operating-cash-flow and price-to-free-cash-flow to value stocks relative to their cash-generating ability.

We screened for stocks that have grown operating cash flow and look cheap relative to both operating cash flow and free cash flow. Here's a look at three favorites in the tech sector: Agilent Technologies (A), Google (GOOG) and Oracle (ORCL). 
Tags: AGOOGORCL

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[BRIEFING.COM] Equity indices remain near their best levels of the session with the S&P 500 trading higher by 0.4%.

Although the third week of September is nearing its end, there is still one big unknown that needs to be resolved ahead of the weekend. Specifically, the results of the Scottish independence referendum are expected to trickle in during the course of the night.

Many European banks have announced that their foreign exchange desks will be fully staffed in ... More


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