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U.S. regulators close seven small banks on Friday..... seeks like small bank still cant handle the situation....
This isn’t a bear market rally,” Hugh Johnson, who manages more than $1.5 billion as chairman of Albany, New York-based Johnson Illington, said in a Bloomberg Radio interview. “It’s often confirmed by things such as the index of leading economic indicators, which has been up three months in a row and telling us that we’re headed towards a recovery.”
U.S. Stocks Rise as Dow Posts Best Two-Week Gain in Nine Years
By Whitney Kisling
July 25 (Bloomberg) -- U.S. stocks rose, completing the steepest two-week rally for the Dow Jones Industrial Average since 2000, as companies beat profit estimates and an increase in home resales signaled an economic recovery may be underway.
Caterpillar Inc. soared 24 percent after reporting earnings that tripled analysts’ projections, and EBay Inc. rallied on results that signaled consumers’ appetite for online commerce is rebounding. Homebuilders in the Standard & Poor’s 500 Index climbed 11 percent as sales increased for a third month. All 40 energy companies in the S&P 500 rallied.
The S&P 500 added 4.1 percent to 979.26. The Dow average jumped 349.30 points, or 4 percent, to 9,093.24, topping 9,000 for the first time since January and extending its rally since July 10 to 12 percent. The Nasdaq Composite Index gained 4.2 percent to 1,965.96. Its 12-day winning streak, the longest since 1992, ended yesterday as Microsoft Corp. dropped.
“The rally’s been a surprise to everyone, including the bulls,” said Philip Dow, the Minneapolis-based director of equity strategy at RBC Wealth Management, which oversees $112 billion. “What’s driving the market is positive earnings surprises, and the economic tea leaves are telling us the recovery is at hand.”
Companies from American Express Co. to 3M Co. reported second-quarter results that topped estimates, suggesting the worst recession in a half century is abating. Seventy-five percent of the companies in the S&P 500 that have released results surpassed predictions, according to data compiled by Bloomberg. That would be the highest rate ever for a full quarter, Bloomberg data going back to 1993 show.
Next Week’s Reports
Walt Disney Co., Exxon Mobil Corp. and Chevron Corp. are among 150 companies in the S&P 500 scheduled to report next week.
The S&P 500 has erased more than half its loss since the Sept. 15 collapse of Lehman Brothers Holdings Inc. The benchmark index for U.S. equities has climbed 45 percent from a 12-year low on March 9 after the nation’s largest banks were profitable to start the year and the U.S. government and Federal Reserve pledged $12.8 trillion to revive growth.
Investors are pouring money into shares on speculation the fastest rally since the Great Depression will reverse losses from last year, when the S&P 500 fell 38 percent. U.S. mutual funds received $1.5 billion of net inflows this week, the second-highest amount since February 2008, according to AMG Data Services in Arcata, California.
No Bear Market
All 10 industries rose this week, led by raw-materials producers, as existing-home sales rose in June for a third straight month, climbing to the highest level since October. The Conference Board’s gauge of the economy’s prospects in the next three to six months increased 0.7 percent, more than forecast. Standard Pacific Corp., the U.S. homebuilder that gets most of its revenue from California, added 37 percent to $3.12.
“This isn’t a bear market rally,” Hugh Johnson, who manages more than $1.5 billion as chairman of Albany, New York-based Johnson Illington, said in a Bloomberg Radio interview. “It’s often confirmed by things such as the index of leading economic indicators, which has been up three months in a row and telling us that we’re headed towards a recovery.”
Caterpillar gained 24 percent to $42, the best weekly rally since April 1999. The world’s largest maker of construction equipment raised its full-year forecast after reporting second- quarter profit that beat estimates, saying stimulus programs are beginning to support worldwide demand.
Auction Customers
EBay jumped 15 percent to $21.24. Second-quarter earnings and a forecast for the current period topped analysts’ estimates, a sign buyers and sellers are returning to the auction site.
Energy companies in the S&P 500 gained 5.6 percent as a group after crude oil reached a three-week high of $68.05 a barrel. Massey Energy Co. rallied 13 percent to $23.74, while Exxon Mobil Corp. climbed 5.5 percent to $72.29.
Data next week will probably show the economic downturn eased last quarter as trade and government stimulus mitigated damage from declines in housing, inventories and consumer and business spending, according to the average forecast of economists in a Bloomberg survey. Other reports may show sales of new houses rose, while orders for long-lasting goods fell.
Stocks gained this week after Federal Reserve Chairman Ben S. Bernanke said the world’s largest economy is showing “tentative signs of stabilization” and detailed a strategy for the central bank to exit history’s biggest monetary expansion. Yesterday, he said the Fed is “winding down” its emergency- lending programs.
Microsoft, the world’s biggest software maker, fell 3.5 percent to $23.45 after reporting a 29 percent profit drop and sales that missed analysts’ estimates, a sign that demand for Windows and Office software is still declining.
To contact the reporter on this story: Whitney Kisling in New York at wkisling@bloomberg.net. Last Updated: July 25, 2009 08:00 EDT
By Whitney Kisling
July 25 (Bloomberg) -- U.S. stocks rose, completing the steepest two-week rally for the Dow Jones Industrial Average since 2000, as companies beat profit estimates and an increase in home resales signaled an economic recovery may be underway.
Caterpillar Inc. soared 24 percent after reporting earnings that tripled analysts’ projections, and EBay Inc. rallied on results that signaled consumers’ appetite for online commerce is rebounding. Homebuilders in the Standard & Poor’s 500 Index climbed 11 percent as sales increased for a third month. All 40 energy companies in the S&P 500 rallied.
The S&P 500 added 4.1 percent to 979.26. The Dow average jumped 349.30 points, or 4 percent, to 9,093.24, topping 9,000 for the first time since January and extending its rally since July 10 to 12 percent. The Nasdaq Composite Index gained 4.2 percent to 1,965.96. Its 12-day winning streak, the longest since 1992, ended yesterday as Microsoft Corp. dropped.
“The rally’s been a surprise to everyone, including the bulls,” said Philip Dow, the Minneapolis-based director of equity strategy at RBC Wealth Management, which oversees $112 billion. “What’s driving the market is positive earnings surprises, and the economic tea leaves are telling us the recovery is at hand.”
Companies from American Express Co. to 3M Co. reported second-quarter results that topped estimates, suggesting the worst recession in a half century is abating. Seventy-five percent of the companies in the S&P 500 that have released results surpassed predictions, according to data compiled by Bloomberg. That would be the highest rate ever for a full quarter, Bloomberg data going back to 1993 show.
Next Week’s Reports
Walt Disney Co., Exxon Mobil Corp. and Chevron Corp. are among 150 companies in the S&P 500 scheduled to report next week.
The S&P 500 has erased more than half its loss since the Sept. 15 collapse of Lehman Brothers Holdings Inc. The benchmark index for U.S. equities has climbed 45 percent from a 12-year low on March 9 after the nation’s largest banks were profitable to start the year and the U.S. government and Federal Reserve pledged $12.8 trillion to revive growth.
Investors are pouring money into shares on speculation the fastest rally since the Great Depression will reverse losses from last year, when the S&P 500 fell 38 percent. U.S. mutual funds received $1.5 billion of net inflows this week, the second-highest amount since February 2008, according to AMG Data Services in Arcata, California.
No Bear Market
All 10 industries rose this week, led by raw-materials producers, as existing-home sales rose in June for a third straight month, climbing to the highest level since October. The Conference Board’s gauge of the economy’s prospects in the next three to six months increased 0.7 percent, more than forecast. Standard Pacific Corp., the U.S. homebuilder that gets most of its revenue from California, added 37 percent to $3.12.
“This isn’t a bear market rally,” Hugh Johnson, who manages more than $1.5 billion as chairman of Albany, New York-based Johnson Illington, said in a Bloomberg Radio interview. “It’s often confirmed by things such as the index of leading economic indicators, which has been up three months in a row and telling us that we’re headed towards a recovery.”
Caterpillar gained 24 percent to $42, the best weekly rally since April 1999. The world’s largest maker of construction equipment raised its full-year forecast after reporting second- quarter profit that beat estimates, saying stimulus programs are beginning to support worldwide demand.
Auction Customers
EBay jumped 15 percent to $21.24. Second-quarter earnings and a forecast for the current period topped analysts’ estimates, a sign buyers and sellers are returning to the auction site.
Energy companies in the S&P 500 gained 5.6 percent as a group after crude oil reached a three-week high of $68.05 a barrel. Massey Energy Co. rallied 13 percent to $23.74, while Exxon Mobil Corp. climbed 5.5 percent to $72.29.
Data next week will probably show the economic downturn eased last quarter as trade and government stimulus mitigated damage from declines in housing, inventories and consumer and business spending, according to the average forecast of economists in a Bloomberg survey. Other reports may show sales of new houses rose, while orders for long-lasting goods fell.
Stocks gained this week after Federal Reserve Chairman Ben S. Bernanke said the world’s largest economy is showing “tentative signs of stabilization” and detailed a strategy for the central bank to exit history’s biggest monetary expansion. Yesterday, he said the Fed is “winding down” its emergency- lending programs.
Microsoft, the world’s biggest software maker, fell 3.5 percent to $23.45 after reporting a 29 percent profit drop and sales that missed analysts’ estimates, a sign that demand for Windows and Office software is still declining.
To contact the reporter on this story: Whitney Kisling in New York at wkisling@bloomberg.net. Last Updated: July 25, 2009 08:00 EDT
I m sure admin is monitoring the forum n aware of this,
so it must be either forumers are allowed to advertise their
products or biz for free in the forum or it could be a special privilege
granted to supreme status.
goondusamy ( Date: 25-Jul-2009 10:10) Posted:
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Give her a 
n her face will be 
n her face will be handon ( Date: 25-Jul-2009 20:15) Posted:
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Sales Fail to Keep Pace With Profits as Economy Stays Sluggish
By Peter J. Brennan and Steve Matthews
July 25 (Bloomberg) -- Sales growth lagged behind profits as companies in the Standard & Poors’ 500 Index beat analysts’ estimates this week, a signal that economic recovery may be slow.
Second-quarter revenue at Caterpillar Inc. and Freeport- McMoRan Copper & Gold Inc. tumbled more than 30 percent from a year earlier, though earnings topped the average of analysts’ predictions. Amazon.com Inc.’s profit skidded and sales missed estimates. United Parcel Service Inc.’s sales slid 17 percent. Microsoft Corp. saw annual sales drop for the first time in 23 years as a public company.
“The economy is coming back but it is not going to come roaring back,” said Mark Zandi, chief economist at Moody’s Economy.com. Companies “are going to be reluctant to add investment and jobs until they get better sales.”
Revenue at 143 companies in the S&P 500 reporting this week, many of them bellwethers for the American economy, fell on average 10 percent from a year ago, according to Bloomberg data. Seventy managed to top the analysts’ consensus for sales, while 107 did so for earnings per share.
The economy probably declined 1.5 percent in the three months ended June 30, marking the fourth straight drop and the longest such streak since quarterly records started in 1947, according to the median of 66 economists in a Bloomberg survey.
‘Shrinking Your Way to Profitability’
“The real theme is the divergence between earnings and revenues,” said Steven Ricchiuto, chief economist at Mizuho Securities USA Inc. in New York. “We know companies are cutting costs at a record pace, and that is helping earnings. But you can’t keep on shrinking your way to profitability. Eventually, you do damage to your end users. You have to get revenues up to have a sustainable upturn.”
Industrials led the sectors in earnings surprises, with 19 of 23 firms that reported during the week posting profit higher than analysts projected.
Caterpillar, the world’s largest maker of bulldozers, reported 72 cents in per-share earnings excluding some costs, more than triple the average estimate of 22 cents. It also raised its full-year forecast, saying stimulus programs are starting to support global demand.
“We had a sharp decline and the recovery is likely to be gradual,” said John Praveen, the Newark, New Jersey-based chief investment strategist at Prudential International Investments Advisers LLC, a unit of Prudential Financial Inc., which manages about $542 billion. “Because of rising unemployment and rising household savings rate, the rebound will be anemic or weak.”
Consumer Discretionary Surprises
Consumer discretionary companies such as Black & Decker Corp., Ford Motor Co. and Whirlpool Corp. also surprised analysts as 16 out of 18 reported higher than expected EPS.
The other sectors this week reporting a bigger increase in profit than analysts expected included health care, such as Boston Scientific Corp., on higher sales, and financials such as SLM Corp., also known as Sallie Mae.
“Companies did good jobs of managing costs,” said Pat Becker Jr., chief investment officer at Portland, Oregon-based Becker Capital Management Inc., which manages $1.8 billion in assets. “You can only pull that string for so long. You eventually need revenue growth.”
Sales declined in eight of the 10 S&P 500 sectors, led by a 65 percent fall at steelmakers Nucor Corp. and AK Steel Holding Corp.
UPS, the world’s largest package-delivery company, reported a second-quarter drop of 17 percent in sales to $10.8 billion, its biggest quarterly decline since the company went public in 1999. Chief Financial Officer Kurt Kuehn said UPS doesn’t “have any confidence” in a near-term pickup in demand.
‘Double Dip’
Some economists fear a second economic contraction, what they call a “double dip.”
“Expectations of corporate earnings will have to be downgraded again,” Nouriel Roubini, the New York University economist who predicted the credit crisis, said in a July 23 research note. “Demand will be weak, most prices will be falling, and companies will therefore have little pricing power and their profit margins will remain squeezed. The expectation that in these conditions profits will rebound strongly is quite far-fetched.”
Federal Reserve Chairman Ben S. Bernanke told Congress this week the economy is showing “tentative signs of stabilization,” with consumer spending leveling out, though businesses have yet to increase investments.
By Peter J. Brennan and Steve Matthews
July 25 (Bloomberg) -- Sales growth lagged behind profits as companies in the Standard & Poors’ 500 Index beat analysts’ estimates this week, a signal that economic recovery may be slow.
Second-quarter revenue at Caterpillar Inc. and Freeport- McMoRan Copper & Gold Inc. tumbled more than 30 percent from a year earlier, though earnings topped the average of analysts’ predictions. Amazon.com Inc.’s profit skidded and sales missed estimates. United Parcel Service Inc.’s sales slid 17 percent. Microsoft Corp. saw annual sales drop for the first time in 23 years as a public company.
“The economy is coming back but it is not going to come roaring back,” said Mark Zandi, chief economist at Moody’s Economy.com. Companies “are going to be reluctant to add investment and jobs until they get better sales.”
Revenue at 143 companies in the S&P 500 reporting this week, many of them bellwethers for the American economy, fell on average 10 percent from a year ago, according to Bloomberg data. Seventy managed to top the analysts’ consensus for sales, while 107 did so for earnings per share.
The economy probably declined 1.5 percent in the three months ended June 30, marking the fourth straight drop and the longest such streak since quarterly records started in 1947, according to the median of 66 economists in a Bloomberg survey.
‘Shrinking Your Way to Profitability’
“The real theme is the divergence between earnings and revenues,” said Steven Ricchiuto, chief economist at Mizuho Securities USA Inc. in New York. “We know companies are cutting costs at a record pace, and that is helping earnings. But you can’t keep on shrinking your way to profitability. Eventually, you do damage to your end users. You have to get revenues up to have a sustainable upturn.”
Industrials led the sectors in earnings surprises, with 19 of 23 firms that reported during the week posting profit higher than analysts projected.
Caterpillar, the world’s largest maker of bulldozers, reported 72 cents in per-share earnings excluding some costs, more than triple the average estimate of 22 cents. It also raised its full-year forecast, saying stimulus programs are starting to support global demand.
“We had a sharp decline and the recovery is likely to be gradual,” said John Praveen, the Newark, New Jersey-based chief investment strategist at Prudential International Investments Advisers LLC, a unit of Prudential Financial Inc., which manages about $542 billion. “Because of rising unemployment and rising household savings rate, the rebound will be anemic or weak.”
Consumer Discretionary Surprises
Consumer discretionary companies such as Black & Decker Corp., Ford Motor Co. and Whirlpool Corp. also surprised analysts as 16 out of 18 reported higher than expected EPS.
The other sectors this week reporting a bigger increase in profit than analysts expected included health care, such as Boston Scientific Corp., on higher sales, and financials such as SLM Corp., also known as Sallie Mae.
“Companies did good jobs of managing costs,” said Pat Becker Jr., chief investment officer at Portland, Oregon-based Becker Capital Management Inc., which manages $1.8 billion in assets. “You can only pull that string for so long. You eventually need revenue growth.”
Sales declined in eight of the 10 S&P 500 sectors, led by a 65 percent fall at steelmakers Nucor Corp. and AK Steel Holding Corp.
UPS, the world’s largest package-delivery company, reported a second-quarter drop of 17 percent in sales to $10.8 billion, its biggest quarterly decline since the company went public in 1999. Chief Financial Officer Kurt Kuehn said UPS doesn’t “have any confidence” in a near-term pickup in demand.
‘Double Dip’
Some economists fear a second economic contraction, what they call a “double dip.”
“Expectations of corporate earnings will have to be downgraded again,” Nouriel Roubini, the New York University economist who predicted the credit crisis, said in a July 23 research note. “Demand will be weak, most prices will be falling, and companies will therefore have little pricing power and their profit margins will remain squeezed. The expectation that in these conditions profits will rebound strongly is quite far-fetched.”
Federal Reserve Chairman Ben S. Bernanke told Congress this week the economy is showing “tentative signs of stabilization,” with consumer spending leveling out, though businesses have yet to increase investments.
my boss face black black this week.... hehe....
next week probable can see my boss start to like this....
totally agreed....
yes..count money is important - the money must be in your own pocket while you are counting..if not it will evaporate due to market mood swings..
Fight no use...win and count money is more important.....
Anyone here maybe right. Anyway, let hope us........the investor make off with profit & huat.ah.......
That the most important things. Cheers.
My guess is DOW to head down to 8800 before U turn next week...:P
STI to 2450......
Hope it wont happen lah..cos i still holding on two counters...lol...
In the meantime, no harm playing with them.
Agree.It's just to talk up the market. Everything right up to the disruption of the head and shoulders pattern were deliberate. Cost cutting has its limits.It wouldn't surprise me if there is a large correction. Bernanke can hasten this process by removing excess liquidity thru short term interest rates and when that happens, I reckon there will be more 'meaningful' corrections to mirror the dire status of the US economy.
ronleech ( Date: 25-Jul-2009 13:23) Posted:
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I take cue from Bershirke, it is positive, likely the trading session is +ve. I will predict on when monday session commences in the first hour. Hehe...
Those who exited in Jan 09, Mar 09 and May 09 are finding that they would be better of not doing anything during the downturn. So stay invested for your long term portfolio.
Current situation for DOW is if there is a correction, it won't be too major. As lots of company cut cost strategy are working.
A major drop (more than 100 pts) may occurred maybe when some major company like GM go bankrupt...........cause lots of people to go jobless, or
major bank closed down......etc.
But of course don't expect everytime up in Dow & STI. Correction may comes maybe every ...emm maybe ~ 3 days..........
N this will be healthy to STI & DOW. STI don't up everytime. sometimes u see some negative value also (i thk this week there is but not too much down, abit only).
But Dow, we been see + value for i thk the whole week. Next week maybe time for it to vomit out abit (emm -80 still quite acceptable).....haha
Ahh...forget about the heated exchange, lets focus our energy in the mkt and make $$, more $$! Lets play a game here. DOW closed 9093. Anyone is brave enough to "predict" Monday's close.
DOW has hit all resistance trend lines I have ever draw since its downtrend in Nov 07. My take: Dow will close -80pts on Monday
It is also likely that the market (stocks) is trying to return to the pre-meltdown levels...
If this is the case, then it may well be a runaway bull market, but with regular retreats to shake off the weak hands...
But no matter what, there is also the possibility that the market may head down to make a double bottom first.
And there is even the possibility (but perhaps unlikely) that that bottom may give way too, to enter a prolonged recession, or worse...
Thus, no one knows for sure which!...Let the market itself speak...
Bro..remember...the higher it goes, the harder it fall....that is why i say bad....too high and if it did correct, it will correct alot too...Trend must be neturalised...this round is just a one-sided drama... the other side have yet to show anything....
If the DOW was going like 30-80 daily, i would have said it is a long term up trend...but 200++ pts, 100+pts ..... i will think it is a grab and go games those rich are playing.... just my opinion thot...
okie...hope you win more in the surging market in the coming week....
.Bless you and cheer...
iPunter ( Date: 25-Jul-2009 13:07) Posted:
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