Diamonds and Dogs
Market Head FakeMarket Head Fake
Early in today's session, stocks in the Dow climbed over 132 points as investors cheered a drop in jobless claims, better retail numbers, and a better than hoped for 30 year treasury auction. As the session wore on, investors came to grips with the early news. Yes, jobless claims were lower, but the number filing jobless benefits is still over 600,000, and that is a huge number now matter how you slice it. Retail numbers were higher, by a half of a percent, but with crude (think $4 gasoline) trading to new highs of $73 per barrel, retail may be in danger later this summer. Finally, the ten year t-bond hit 4% today, a seven month high, even as the 30 year auction went well. Remember, it was only a few years ago that the 30 year bond was cancelled. All in all, stocks in the Dow have been up for 11 of 13 weeks and we are in the June dead zone, where only bad news can headline an individual issue. Maybe its time to take a step back and not chase stock issues too heartily.
Wednesday June 10, 2009
Competitors create a healthy market for MDRNA technologies. MDRNA Inc. investors reached agreements to raise gross proceeds of $10.5 million through a registered direct offering. Under these terms the company will sell $5.25 million shares of its stock to $2.00 per share to gain more shareholders. In recent news, MDRNA received FDA approval for its abbreviated new drug application for a generic treatment of osteoporosis. As a result, stocks increased by 75.32% or $1.16 to $2.70 per share.
The golf equipment industry outlook was weak, as Callaway intends to cut its dividend to a penny as sell $125 million in convertible preferred stock. The company predicts $119 million in proceeds and plans to pay off some of its revolving credit line. The company plans to cut costs and eliminate 10% of its worldwide positions to help balance the impact from this economic downturn. Callaway stocks have declined by 18.68% or $1.36 to $5.92 per share after Wednesday's afternoon trading.
Tuesday June 9, 2009
Piedmont Natural Gas
Piedmont Natural Gas reported earnings above estimates for the second fiscal quarter. Despite a weakened economy, Piedmont believes that their emphasis on business management and improvements will deliver long term value to their shareholders. Piedmont is engaged in the distribution of natural gas to more than 1 million residential, commercial and industrial consumers in Tennessee, North Carolina and South Carolina. This natural-gas utility is a steady and defensive investment for buyers, providing a generous 2.87% increase or $0.68 to $24.41 per share after Monday's afternoon trading.
Airline stocks plummet into the red as oil prices increase to more than $71 a barrel. Together with the significant deterioration of passenger attendance, revenues for airline cooperation's seem to worsen again. The issue of health frightens many potential passengers as the influence of the Swine influenza floats around. As a result, airlines have experienced depressed industry bookings in the months if May and June. Continental Airlines stocks fall decreasing by 8.81% or $0.94 to $9.73 per share under these circumstances.
Monday June 8, 2009
General Mills has restored the faith in food company stocks after Monday's afternoon trading. General Mills, the producer of brands such as Cheerios and Pillsbury has maintained a consistent performance in the market. General Mills is certainly not a grade-slam, however will produce steady earnings in the long-run if they sustain their healthy appetite. General Mills stock increased 4%, or $2.12 to $54.28 a share.
Apple shares slipped 2.7% to $140.73 after the company decided to decrease the prices for new iPhones and Mac notebooks to an "aggressively" lower value. Apple has produced its "most affordable line-up" the company has ever had. Apples new 3G iPhone claims that it will be significantly faster and more technologically advanced than current versions. This new iPhone will also be consumer friendly priced down to $100.