Major U.S. Indexes
Last Change Today's % Change 1 Week % Change YTD % Change
Dow 9931.22 -324.06 -3.16% -2.03% -4.76%
NASDAQ 2219.17 -83.86 -3.64% -1.68% -2.20%
S&P 500 1064.88 -37.95 -3.44% -2.25% -4.50%
Russell 2000 633.97 -33.40 -5.00% -4.18% 1.37%
CBOE VIX 35.61 6.15 20.88% 11.04% 64.25%
FTSE CNBC Global 300 4023.99 -118.26 -2.85% -1.93% -11.36%
The Dow Jones Industrial Average lost 323.31, or 3.2 percent, to end at 9,931.97, its lowest close since February. Industrials led the decline, with Caterpillar [CAT 57.76 -3.35 (-5.48%) ] and Boeing [BA 61.1525 -3.1575 (-4.91%) ] among the biggest laggards on the Dow. Materials and financial stocks also took a hit.
All three major indexes are in correction territory, defined as being down more than 10 percent from its recent high. The Dow is now down 11 percent from its April high, while the S&P 500 and Nasdaq are down 12 percent from those levels.
Volume was heavy, with more than 1.6 billion shares changing hands on the New York Stock Exchange. Decliners outpaced advancers, roughly 10 to 1. The CBOE volatility index spiked more than 20 percent, topping 35.
The market's mood started off sour as a carryover from Europe as investors there worried about rumors that SocGen may be having trouble with its derivatives operations and news that Hungary is very close to defaulting on its debt.
source - CNBC
Monday, June 7, 2010
Thursday, May 6, 2010
Corrections started ?
The month of May till Jul is normally a vacation months as the market take a breath and go south. Some stocks will either sustain or go south all the way during this time. However, having say that, some seasonal stocks will do the opposite going north. It needs a lot of patient and time to scan for those stocks.
Perhaps, it is time to liquidate some of the portfolio and go for a short vacation. A cruise to no way seems interesting !!
Perhaps, it is time to liquidate some of the portfolio and go for a short vacation. A cruise to no way seems interesting !!
Sunday, April 25, 2010
Riding The Semiconductor Wave
After toughing out "the worst recession the semiconductor industry has seen since its inception", things are going the way of the semi manufacturers. Strengthening consumer confidence, a growing global economy and reported increase in corporate spending have helped push the sector into positive earnings and that continued profit could have the same effect on portfolios.
Positive Circuits
Semiconductor sales fell more than 9% throughout 2009, but analysts are now predicting a wave of nearly 20% growth in sales for the sector in 2010. Consumers are parting with their hard-earned dollars in the tech sector. Research firm IDC, reports that shipments of personal computers have risen by 24% in the past quarter. The rise in e-book readers popularity, such as Amazon's (NASDAQ: AMZN) Kindle, are also having positive effects. Global e-book reader shipments are predicted to increase from 700,000 units in 2008 to more than 28 million units by 2013. Also the push for consumers to be more "green" could help the semi industry profit. As consumers buy more energy efficient appliances, the more complex the chip sets need to be in performing their functions.
The average age of a computer in corporate America is nearly five years old. While companies reduced IT spending during the downturn, these older machines are at the point where it becomes more costly to keep them running rather than buy new. Tech companies are typically one of the first recipients of increased corporate spending as their products or services help increase efficiency and growth. Analysts predict that CAPEX spending will rise by over 14% in the coming year.
The contract prices of 12-inch wafers grew 10% in the fourth quarter of 2009, 5% in the first of 2010 and the Semiconductor Industry Association announced that February sales increased 56% year-over-year. Both Texas Instruments (NYSE: TXN) and LSI (NYSE:LSI) raised their guidance, and tech bell-weather Intel (NASDAQ: INTC) reported soaring earnings, topping estimates by 13.2%.
A Chipper Portfolio
The semiconductor industry is one of a cyclical nature. While Intel's blowout earnings have caused the overall sector to spike over the past few days, it's not too late to ride the next wave in the sector. A growing global economy and increased tech spending should keep the upsurge going. Exchange-traded funds (ETFs) can provide an easy way to own a basket of various semi manufacturers with the ease of holding a single ticker.
The iShares S&P North American Tech-Semiconductors (NYSE: IGW) is the second largest ETF in the sector based on assets, and holds 52 stocks. This includes an 8.5% weighting towards Intel. The equal-weighted SPDR S&P Semiconductor (NYSE: XSD) might be a better choice for investors with its lower expense ratio and more concentrated 27 stock portfolio. The SPDR's portfolio has outperformed IGW over the last year ending in March, by nearly 16%. The SPDR charges 0.35% in expenses.
The most heavily traded choice in the sector is the Semiconductor HOLDRs (NYSE: SMH). The Holding Company Depositary Receipts is made up of a basket of stocks that never get rebalanced or reconstituted. The current mix contains 18 stocks, including Analog Devices (NYSE:ADI) and Applied Materials (NASDAQ: AMAT). The HOLDRs' interesting structure could be a boon or bust depending on the sector it tracks - just ask investors in the B2B Internet HOLDRs (NYSE: BHH). SMH trades in units of 100 and can be unbundled into the individual stocks. Investors get to keep the voting and dividend rights of the underlying stocks.
Bottom Line
Things are looking quite chipper in the semiconductor sector going forward. The semis are poised to capitalize on the growing global trends and increases in corporate and personal spending. Recent knockout earnings from a few of the leaders in the sector have helped point the way for the next bull market cycle in the sector. Adding a dose of chips to a portfolio via ETFs will help investors cash in on this growth. (For related reading, take a look at Technology Sector Funds.)
Source : http://stocks.investopedia.com
Positive Circuits
Semiconductor sales fell more than 9% throughout 2009, but analysts are now predicting a wave of nearly 20% growth in sales for the sector in 2010. Consumers are parting with their hard-earned dollars in the tech sector. Research firm IDC, reports that shipments of personal computers have risen by 24% in the past quarter. The rise in e-book readers popularity, such as Amazon's (NASDAQ: AMZN) Kindle, are also having positive effects. Global e-book reader shipments are predicted to increase from 700,000 units in 2008 to more than 28 million units by 2013. Also the push for consumers to be more "green" could help the semi industry profit. As consumers buy more energy efficient appliances, the more complex the chip sets need to be in performing their functions.
The average age of a computer in corporate America is nearly five years old. While companies reduced IT spending during the downturn, these older machines are at the point where it becomes more costly to keep them running rather than buy new. Tech companies are typically one of the first recipients of increased corporate spending as their products or services help increase efficiency and growth. Analysts predict that CAPEX spending will rise by over 14% in the coming year.
The contract prices of 12-inch wafers grew 10% in the fourth quarter of 2009, 5% in the first of 2010 and the Semiconductor Industry Association announced that February sales increased 56% year-over-year. Both Texas Instruments (NYSE: TXN) and LSI (NYSE:LSI) raised their guidance, and tech bell-weather Intel (NASDAQ: INTC) reported soaring earnings, topping estimates by 13.2%.
A Chipper Portfolio
The semiconductor industry is one of a cyclical nature. While Intel's blowout earnings have caused the overall sector to spike over the past few days, it's not too late to ride the next wave in the sector. A growing global economy and increased tech spending should keep the upsurge going. Exchange-traded funds (ETFs) can provide an easy way to own a basket of various semi manufacturers with the ease of holding a single ticker.
The iShares S&P North American Tech-Semiconductors (NYSE: IGW) is the second largest ETF in the sector based on assets, and holds 52 stocks. This includes an 8.5% weighting towards Intel. The equal-weighted SPDR S&P Semiconductor (NYSE: XSD) might be a better choice for investors with its lower expense ratio and more concentrated 27 stock portfolio. The SPDR's portfolio has outperformed IGW over the last year ending in March, by nearly 16%. The SPDR charges 0.35% in expenses.
The most heavily traded choice in the sector is the Semiconductor HOLDRs (NYSE: SMH). The Holding Company Depositary Receipts is made up of a basket of stocks that never get rebalanced or reconstituted. The current mix contains 18 stocks, including Analog Devices (NYSE:ADI) and Applied Materials (NASDAQ: AMAT). The HOLDRs' interesting structure could be a boon or bust depending on the sector it tracks - just ask investors in the B2B Internet HOLDRs (NYSE: BHH). SMH trades in units of 100 and can be unbundled into the individual stocks. Investors get to keep the voting and dividend rights of the underlying stocks.
Bottom Line
Things are looking quite chipper in the semiconductor sector going forward. The semis are poised to capitalize on the growing global trends and increases in corporate and personal spending. Recent knockout earnings from a few of the leaders in the sector have helped point the way for the next bull market cycle in the sector. Adding a dose of chips to a portfolio via ETFs will help investors cash in on this growth. (For related reading, take a look at Technology Sector Funds.)
Source : http://stocks.investopedia.com
Saturday, April 24, 2010
Budget deficit countries ....
Iceland : 14.3 (IMF bailout completed)
Greece : 13.6 ( IMF bailout in progress )
Spain : 11.2
Portugal : 9.4
China : 2.2
Which country will be next ?
Greece : 13.6 ( IMF bailout in progress )
Spain : 11.2
Portugal : 9.4
China : 2.2
Which country will be next ?
Friday, April 23, 2010
US New Home Sales Surge 27%, Blowing Past Estimates
Sales of new homes surged 27 percent last month, bouncing off the previous month's record low and blowing past expectations as better weather and government incentives boosted sales.
AP
New home sales rose 26.9 percent in March.
________________________________________
The Commerce Department said new home sales rose in March to a seasonally adjusted annual sales pace of 411,000.
It was the strongest month since last July and the biggest monthly increase in 47 years.
Economists surveyed by Thomson Reuters had expected a sales pace of 330,000.
February's results were revised upward to 324,000, but remained an all-time low. Sales had been especially weak over the winter, partly due to bad weather in much of the country.
Source CNBC ....
Look out for timber related industry !!
AP
New home sales rose 26.9 percent in March.
________________________________________
The Commerce Department said new home sales rose in March to a seasonally adjusted annual sales pace of 411,000.
It was the strongest month since last July and the biggest monthly increase in 47 years.
Economists surveyed by Thomson Reuters had expected a sales pace of 330,000.
February's results were revised upward to 324,000, but remained an all-time low. Sales had been especially weak over the winter, partly due to bad weather in much of the country.
Source CNBC ....
Look out for timber related industry !!
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