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Dow Jones May Drop on Jobs Data

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By Roland Head, The Motley Fool

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LONDON — Stock index futures as of 7 a.m. EDT indicate that both the Dow Jones Industrial Average and the S&P 500 may open 0.6% lower. Despite gains for both indexes yesterday, the CNN Fear & Greed Index fell further and closed at 55 last night, signifying “neutral” sentiment.

Stock markets across Europe fell this morning to reach a one-month low ahead of this afternoon’s U.S. nonfarm payroll data. European airline shares fell amid fears that a bird flu outbreak in China that has already killed six people could harm long-haul business, leaving British Airways owner International Consolidated Airlines Group down by 6.8% at 7:30 a.m. EDT. Concerns also grew that North Korea might threaten U.S. bases in the Asia-Pacific region after it moved missile launchers and intermediate-range missiles to its eastern coastline. At 7:30 a.m. EDT, the FTSE 100 was down 1.4%, while Germany’s DAX was 1.8% lower.

Today’s key economic reports are the nonfarm payrolls and unemployment rate for March, both of which are due at 8:30 a.m. EDT, before markets open. U.S. jobs data has disappointed twice already this week, and consensus forecasts are suggesting that 190,000 new jobs were created in March, down from 236,000 in February. Investors will be concerned that these figures may surprise to the downside once more, although the unemployment rate is expected to remain unchanged at 7.7%. Other data due to be published today includes the trade deficit and consumer credit figures for February.

There are no major corporate earnings announcements due today, but companies with strong domestic exposure such as Bank of America could fall if job figures come in below expectations. Stocks that may be actively traded today include F5 Networks, which fell 17% in German trading this morning after cutting its second-quarter sales and earnings forecasts below its previous guidance. Facebook shares rose 3.1% yesterday as the company launched its new Facebook Home app and its customised Android phone, but the social-networking website’s shares are just 0.5% higher in premarket trading, suggesting that investors may wait to see what impact the new app has on Facebook’s mobile revenue before committing themselves to large new positions.

Finally, let’s not forget that the Dow’s daily movements can add up to serious long-term gains. Indeed, Warren Buffett recently wrote, “The Dow advanced from 66 to 11,497 in the 20th Century, a staggering 17,320% increase that materialized despite four costly wars, a Great Depression and many recessions.” If you, like Buffett, are convinced of the long-term power of the Dow, you should read “5 Stocks To Retire On.” Your long-term wealth could be transformed, even in this uncertain economy. Simply click here now to download this free, no-obligation report.

The article Dow Jones May Drop on Jobs Data originally appeared on Fool.com.


Roland Head has no position in any stocks mentioned. The Motley Fool recommends F5 Networks and Facebook. The Motley Fool …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Dow Jones May Slip on Euro Fears

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By Roland Head, The Motley Fool

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LONDON — Stock index futures at 7 a.m. EDT indicate that the Dow Jones Industrial Average may open 0.35% lower this morning after closing at a new high last night, while the S&P 500 may open down by 0.37% after closing within two points of its all-time high yesterday. As the S&P 500 approaches record levels, the CNN Fear & Greed Index has also moved higher, closing at 76 yesterday in a return to “extreme greed” territory.

In Europe, protests continue in Cyprus as the country’s central bank governor says its banks will open tomorrow with new capital restrictions in place. Italian markets moved lower after yet another set of negotiations failed to produce a coalition to govern the country. Italy has been without an effective government since elections were held at the end of February, and a new round of elections now looks increasingly likely.

In the U.K., the Bank of England said U.K. banks needed to raise a further $38 billion to meet capital shortfalls and cover potential loan losses. The report did not specify which banks were affected, but Lloyds Banking Group and Barclays moved higher after the announcement, which was lower than a previous $90 billion estimate. Revised GDP figures showed that the U.K. economy expanded by just 0.2% in 2012, less than the 0.3% previously reported. Both the British and French economies shrank by 0.3% in the final quarter of 2012.

In the U.S., investors will be looking ahead to February pending-home-sales figures, which are due at 10 a.m. EDT. Consensus forecasts suggest that sales may have fallen by 0.5% in February after rising by 4.5% in January. Also of interest may be the EIA weekly petroleum status report, due at 10:30 a.m. EDT.

Companies due to report before the opening bell today include UniFirst, which is expected to report earnings of $1.13 per share. Companies due to report after markets close today include Paychex, Red Hat, Texas Industries, SYNNEX, HB Fuller, Steelcase, Five Below, and PVH. SAIC stock could also be actively traded this morning after the technical-services provider announced a $1 special dividend in its full-year results, which were published after markets closed last night. SAIC shares moved 4.2% higher in after-hours trading last night.

Finally, let’s not forget the Dow’s daily movements can add up to serious long-term gains. Indeed, Warren Buffett recently wrote, “The Dow advanced from 66 to 11,497 in the 20th Century, a staggering 17,320% increase that materialized despite four costly wars, a Great Depression and many recessions.” If you, like Buffett, are convinced of the long-term power of the Dow, you should read “5 Stocks To Retire On.” Your long-term wealth could be transformed, even in this uncertain economy. Simply click here now to download this free, no-obligation report.

The article Dow Jones May Slip on Euro Fears originally appeared on Fool.com.


Roland Head has no position in …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Dow May Rise as Children's Place Beats the Street

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By Roland Head, The Motley Fool

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LONDON — Stock index futures at 7 a.m. EDT indicate that the Dow Jones Industrial Average may open 0.16% higher this morning, while the S&P 500 may open up by 0.18%.

Markets began to stabilize in Europe this morning after slipping yesterday afternoon in the wake of Eurogroup President Jeroen Dijsselbloem‘s comments that the Cypriot deal could be a template for future bailouts. He later stepped back from these comments, saying that Cyprus was a special case — but it hasn’t escaped investors’ notice that Malta and Luxembourg are both similarly small countries with oversized financial sectors, just like Cyprus, while Spain and Greece also have problematic banking sectors.

By 7 a.m. EDT, most European markets were broadly unchanged, although in Greece, the Athens Stock Exchange was down by 4.2% following Dijsselbloem’s comments, and Spanish and Italian banks also dropped. In London, the FTSE 100 was up 0.1%, with investment manager Aberdeen Asset Management continuing yesterday’s strong run, up 3.9% at 7:35 a.m. EDT, while Kazakhstan miner Eurasian Natural Resources Corp was down 3.7%, after one of its largest shareholders, copper miner Kazakhmys, reported that it had halved the book value of its 26% stake in ENRC, reducing it to $2 billion.

In the U.S., investors will be watching today’s economic reports closely. First up, at 8:30 a.m. EDT, durable-goods orders are expected to have risen by 4.6% following a 4.9% fall in January. At 9 a.m. EDT, January’s Case-Shiller home price index will provide further information on the strength of the housing-market recovery, while at 10 a.m. EDT February’s new-home sales are expected to show that 417,000 new homes were sold last month, down slightly from 437,000 in January.

Companies reporting earnings before the markets open this morning include Children’s Place, which reported fourth-quarter earnings of $1.15 per share, ahead of consensus estimates of $1.04 per share. However, the firm revised its first-quarter and full-year guidance, suggesting it could fall below consensus expectations. Also due to report is food-testing specialist Neogen, which is expected to report earnings of $0.27 per share and says it has seen a surge in demand for its beef-testing kits following recent scandals involving the use of horse meat in beef products.

Let’s not forget that the Dow’s daily movements can add up to serious long-term gains. Indeed, Warren Buffett recently wrote, “The Dow advanced from 66 to 11,497 in the 20th Century, a staggering 17,320% increase that materialized despite four costly wars, a Great Depression and many recessions.” If you, like Buffett, are convinced of the long-term power of the Dow, you should read “5 Stocks To Retire On.” Your long-term wealth could be transformed, even in this uncertain economy. Simply click here now to download this free, no-obligation report.

The article Dow May Rise as Children’s Place Beats the Street originally appeared on Fool.com.


Roland Head has no position in any stocks mentioned. …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Dow May Rise Despite Cyprus Uncertainty

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By Roland Head, The Motley Fool

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LONDON — Stock index futures at 7 a.m. EDT indicate that the Dow Jones Industrial Average may open 0.11% higher this morning, while the S&P 500 may open up by 0.26%. The CNN Fear & Greed Index has continued its recent retreat, closing at 67 (greed) last night, down from its previous close of 73.

Europe could be in the spotlight once more today as events in Cyprus enter a critical stage. Cypriot politicians have drawn up a wide-ranging set of capital controls that they hope to vote into law later today. The controls are part of a nine-bill package aimed at restructuring the country’s Laiki Bank and finding a bailout solution that will be acceptable to the European Union and the International Monetary Fund following Russia‘s refusal to provide further assistance. A final agreement is unlikely before the weekend but is needed by Monday, when the European Central Bank has threatened to withdraw liquidity support from Cypriot banks.

Elsewhere in Europe, Germany’s Ifo Business Climate Index dropped for the first time in five months from 107.4 in February to 106.7 in March. European markets were mixed through the morning, but there were no serious sell-offs. In London, the FTSE 100 was up by 0.31% at 7:25 a.m. EDT.

There are no major economic reports scheduled for release in the U.S. this morning, but companies due to report quarterly earnings before the opening bell include Tiffany, which is expected to report fourth-quarter earnings of $1.36 per share on revenue of $1.25 billion, and Darden Restaurants, which is expected to report earnings of just $0.01 per share for the third quarter. BlackBerry will also be in the spotlight today as it launches its new Z10 smartphone in the U.S.

Nike stock could be actively traded this morning after the sportswear firm reported a 55% rise in quarterly revenue after the close last night. Quarterly earnings rose to $0.73 per share compared with $0.61 per share for the same period last year, significantly ahead of analysts’ consensus forecasts for earnings of $0.67 per share. Nike stock was up 8% in premarket trading this morning, while Micron Technology rose by 6.4% in early trading after the company beat estimates with second-quarter sales of $2.08 billion.

Finally, let’s not forget that the Dow’s daily movements can add up to some serious long-term gains. Indeed, Warren Buffett recently wrote, “The Dow advanced from 66 to 11,497 in the 20th Century, a staggering 17,320% increase that materialized despite four costly wars, a Great Depression and many recessions.” If you, like Buffett, are convinced of the long-term power of the Dow, you should read “5 Stocks To Retire On.” Your long-term wealth could be transformed, even in this uncertain economy. Simply click here now to download this free, no-obligation report.

The article Dow May Rise Despite Cyprus Uncertainty originally appeared on Fool.com.


Roland Head has no position …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Dow May Pause After 10 Record-Breaking Days

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By Roland Head, The Motley Fool

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LONDON — Stock index futures at 7 a.m. EDT indicate that the Dow Jones Industrial Average may open down by a nominal five points this morning. The index has closed higher for the last 10 trading days — a streak it hasn’t matched since 1996. Meanwhile, the S&P 500 may open a single point lower after closing within two points of its all-time closing high yesterday.

After jobless claims came in lower than expected yesterday, will today’s data provide another boost to the markets? First up, at 8:30 a.m. EDT, is February’s consumer price index, which is expected to be up 0.6% after remaining unchanged in January. Also due at 8:30 a.m. EDT is the Empire State index for March, which is expected to remain unchanged at 10. At 9:15 a.m. EDT, industrial-production data is expected to show that output rose by 0.6% in February after falling by 0.1% in January. Finally, at 9:55 a.m. EDT, the University of Michigan Consumer Sentiment Index for March is expected to edge higher to 78, up from 77.6 in February.

Cruise ship giant Carnival is due to report earnings before the markets open this morning, but investors’ attention may also be focused on U.S. banks, which have recently completed a round of stress tests. Bank of America and Morgan Stanley were both higher in premarket trading after the Federal Reserve approved their capital plans. However, JPMorgan Chase and Goldman Sachs were lower after the Fed provided only conditional approval for their plans.

European markets
In Europe, markets were mixed this morning as investors waited for news from the EU leaders’ summit after preliminary comments yesterday suggested deficit targets might be relaxed in an effort to increase growth and reduce unemployment in the eurozone.

At 7:20 a.m. EDT, the DAX was down 0.12%, the CAC 40 was down 0.76%, the FTSE MIB was down 0.11%, and the IBEX 35 was down 0.61%. In London, the FTSE 100 was down 0.45%, dragged lower by the two largest companies in the index, HSBC Holdings and Royal Dutch Shell — both companies fell by around 1.4%, outweighing gains on broker upgrades for International Consolidated Airlines and ARM Holdings.

If you’re looking for shares that can outperform the wider market, you need to look beyond the news headlines. This free Motley Fool report, “The Top Growth Share For 2013,” highlights a share that gained 38% in 2012, during which time the wider market rose just 6%. The company is a household name, and its earnings per share have risen by 44% since 2009 — so click here now to download your free copy of this report while it is still available.

The article Dow May Pause After 10 Record-Breaking Days originally appeared on Fool.com.

Roland Head owns shares in Royal Dutch Shell and HSBC Holdings but does not own shares in any of the other companies mentioned …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Dow May Open Lower as Investors Target 9th Day of Gains

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By Roland Head, The Motley Fool

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LONDON — After hitting record closing highs for the last eight days, will the Dow extend its winning streak to nine days? Stock index futures at 7 a.m. EDT indicate that the Dow Jones Industrial Average may open down by 0.2% this morning, while the S&P 500 may open 0.24% lower.

Retail data will be in focus this morning when February’s retail sales figures are released at 8:30 a.m. EDT. Consensus forecasts suggest that sales rose by 0.7% in February after gaining 0.1% in January. Also due at 8:30 a.m. EDT, import prices are expected to have risen by 0.5% in February after rising 0.6% in January, while at 10 a.m. EDT, analysts expect that inventories may have risen by 0.6% in January after gaining 0.1% in December.

The retail industry will also be the main focus of today’s corporate earnings announcements. Guess?, Vera Bradley, and Men’s Wearhouse are all due to report after the close tonight, while Express is due to report before the opening bell this morning. Aircraft manufacturer Boeing may also be actively traded after the FAA approved the company’s plans to fix the battery issues that have been behind the global grounding of its 787 Dreamliner aircraft.

European markets
Markets moved lower in Europe this morning as investors took profits and reacted to the latest eurozone industrial-production figures, which showed that output fell by 0.4% across the single-currency zone in January, missing expectations for a 0.1% fall. Meanwhile, reports indicated that the EU parliament is likely to vote against last month’s EU budget deal later today, which could trigger months of further negotiations.

At 7:10 a.m. EDT, the DAX was down 0.25%, the CAC 40 was down 0.47%, the FTSE MIB was down 1.57%, and the IBEX 35 was down 0.79%. In London, the FTSE 100 was down 0.86% despite a 2.9% gain for Asia-focused life insurance company Prudential, which reported a 25% increase in operating profit in 2012. The index was dragged back by security-outsourcing specialist G4S, which fell 2.7% after it reported the departure of its chief financial officer, despite a 10% rise in revenue last year. Other big fallers included Standard Chartered and British American Tobacco, both of which went ex-dividend today.

If you’re looking for shares that can outperform the wider market, you need to look beyond the news headlines. This free Motley Fool report, “The Top Growth Share For 2013,” highlights a share that gained 38% in 2012, during which time the wider market rose just 6%. The company is a household name, and its earnings per share have risen by 44% since 2009 — so click here now to download your free copy of this report while it is still available.

The article Dow May Open Lower as Investors Target 9th Day of Gains originally appeared on Fool.com.

Roland Head does not own shares in any of the companies …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Should I Buy Tesco for my ISA?

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By Roland Head, The Motley Fool

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LONDON — Any company that has increased its dividend continuously for 28 years, and offers a FTSE-beating yield of 4.1%, deserves to be taken seriously.

And when you add in annual sales nearly three times that of its closest London-listed competitor, and a leading presence in the home-delivery market, then things look even better.

I am, of course, talking about Tesco  , a share I hold in my own ISA, and one that I think is perfect for this tax-efficient method of saving.

You can find out more about the tax benefits of investing through an ISA here. Let’s now take a look at the particular attractions of Tesco.

Would you bet against Buffett?
Tesco’s size and U.K. market dominance are undoubtedly two of the company’s strengths, as is its unbroken 28-year record of dividend increases.

When Tesco issued a profit warning in January 2012, billionaire investor Warren Buffett used the share-price dip as a buying opportunity, and topped up his Tesco shareholding, to give him 5% of the company.

Today, Buffett’s Tesco shares are worth around £1.5bn, and will provide him a dividend income of about £60m this year.

Although Tesco‘s share price has risen recently, it still looks like a good value to me, placing the company on a forward price-to-earnings ratio (P/E) of 11.3, well below the FTSE 100 average of 16.6.

Beneath the bonnet
When you look a little more closely at Tesco’s financials, things still look good. Tesco’s operating margin of 6.2% is higher than both that of J Sainsbury (3.9%), and Wm Morrison Supermarkets (5.5%).

What’s more, despite being the biggest of these three, Tesco is also expected to deliver the most growth this year. Analysts’ forecasts suggest Tesco’s earnings per share will grow by 5.7% in 2013, compared with 4.8% for Sainsbury’s, and a stagnant 0.4% for Morrisons.

Never knowingly undersold?
Finally, a recent report in the Financial Times suggested that Tesco is about to launch a new price-matching scheme, which will issue customers with money-off vouchers at the till if their shopping would have been cheaper at Morrisons, Sainsbury’s, or Asda.

It rarely pays to bet against a giant, and I believe that Tesco will overcome its short-term problems, and will continue to pay a rising stream of tax-free dividends into my ISA for many years to come.

2013’s top ISA income stock?
If you like the idea of using an ISA to hold high-yielding income shares, then I would recommend you take a look at The Motley Fool’s latest free report, “The Fool’s Top ISA Income Stock For 2013“.

The company in question currently offers a yield of 5.7%, and the Fool’s expert analysts believe that the current price of 700p could be 20% below the share’s true value. To learn more, just click here to download your free copy of this special report, while it remains available.

The article Should I Buy Tesco for my ISA? originally appeared on Fool.com.


Roland Head and …read more
Source: FULL ARTICLE at DailyFinance