U.S. Markets Continue To Surge Higher On Strong Economic Data
allpennystocks Newsletter
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http://ymlp288.net/zE6Oq4 ——————————————————————————– March 17, 2013 Week In Review…
Week In Review For March 11 to March 15, 2013 Canadian Technical Penny Stocks To Watch This Week:
* Tuscany Intl. Drilling Inc. (TSX:TID) * Novagold Resources Inc. (TSX:NG) U.S. Technical Penny Stocks To Watch This Week:
* Renren Inc. (NYSE:RENN) * Zogenex Inc. (NASDAQ:ZGNX) * Alcatel-Lucent (NYSE:ALU) This week on AllPennyStocks.com:
* Article Published, March 12, 2013: Vapor Corp Ready to Ride the Electronic Cigarette Evolution Higher (http://www.allpennystocks.com/aps_us/special-reports/339/vapor-corp-ready-to-ride-the-electronic-cigarette-evolution-higher.htm) (U.S. Company) * Article Published, March 14, 2013: Air Canada Gets 7 Year Extension on Pension Fund Deficit Repayment (http://www.allpennystocks.com/aps_ca/special-reports/335/air-canada-gets-7-year-extension-on-pension-fund-deficit-repayment.htm) (CDN Company) * Article Published, March 15, 2013: Baristas Coffee Setting Sights on NASDAQ listing (http://www.allpennystocks.com/aps_us/special-reports/340/baristas-coffee-setting-sights-on-nasdaq-listing.htm) (U.S. Company) Video charts for the week:
* March 13th Technical Video Chart For NG:CA. The Novagold chart closed Tuesday against a resistance at $4.20. The indicators are showing that the chart is trying to undergo a shift in trend and momentum and if the resistance falls there is a nice upside to the next resistance near $4.90. view:
( http://www.youtube.com/user/AllPennyStocks#p/a/u/1/zsJ0fABIn88 ).
* March 13th Technical Video Chart For ZGNX. The Zogenix chart has formed a flag pattern after making a strong move off a bottom support just over $1. The support and resistance of the flag are at $1.70 and $2, respectively, keeping traders on the lookout for a breakout of the pattern. view:
( http://www.youtube.com/user/AllPennyStocks#p/a/u/1/fPI0TajCxzs ).
Featured Link: BullishInvestor.com ( http://www.bullishinvestor.com) – Offering Free U.S. and Canadian technical analysis charts, bullish/bearish ratings and stock screening tools for over 15,000 stocks utilizing technical analysis techniques such as candlestick charting, technical analysis indicators as well as volume and trend analysis.
WEEKLY UPDATE -BULLS STAY IN CONTROL FOR ANOTHER RECORD WEEK While Canadian stocks treaded water this past week, stocks in the United States continued to bang upward with the Dow Jones Industrial Average finally giving up some ground on Friday after 10 consecutive days of closing ahead. It was the Dow`s longest winning streak since 1996 as data flowed in that steadily topped economist predictions and showed that momentum is continuing to build in the recovery for the country. While the Dow set its new all-time record at 14,539.29 on Thursday, the S&P 500 is clawing towards a record of its own, closing the week at 1,560.70, only a few points from its highest level ever of 1,565.15 set in October 2007.
US equities have been rallying all year in the face of the pending fiscal cliff, political wrangling in Washington over the budget, sequester tax cuts and increases in payroll taxes. Even with all that, economic data has provided overriding optimism with all three blue chip indexes in the States up between 7 and 10 percent so far in 2013.
Volumes were also strong in the US this past week because of “triple witching,” the quarterly settlement of four different types of contracts at once – those tied to market index futures, market index options, stock options and future options. Volume continues to pour into equity funds at record paces. Reuter`s Lipper service said that US-based funds had $11.26 billion in new cash put into them in the week prior, the largest volume since late in January.
Market influencing data from overseas was also pretty thin this past week. China had a mild influence with information showing China`s economy slowed to start the new year. Industrial production rose 9.9 percent compared to the prior January and retail sales increased 12.3 percent in February from the year prior month, but both figures were well below expectations and softer than the month prior levels.
Gross domestic product readings in Italy were on par with economist predictions for the fourth quarter with a 0.9 percent contraction, but fell a revised 2.8 percent compared to the fourth quarter of 2011, a bit more than expected.
The budget bickering in Washington heated up some as House Budget Committee Chairman Paul Ryan promoted his budget plan that cuts spending by the government. Ryan took aim at the democratic plan and President Obama and their plan, saying that it supports more taxes and greater spending. Ryan warned that the democratic proposal will cause the US`s finances to “collapse” and told people that don`t believe it to “take a look at Europe. Obviously, there is still quite a gap between Democrats and Republicans agreeing on a new budget.” Other than that, the week in the markets was dominated by momentum from the prior week and upbeat economic data (see below).
Investors will likely enter the new week with a fair amount of caution as the bulls need some type of catalyst to encourage a now over-extended run and the bears are looking from the outside in for a reason to pounce and try and take over some of the momentum. Where economic data, especially unemployment information that crushed expectations, was plentiful last week, it will be relatively subdued this coming week. Words from the Federal Open Markets Committee on Wednesday will likely be very closely watched as investors will look to glean any information about possibilities of how long the Feds $85-billion-per-month stimulus package will continue in light of the strengthening economy. Unlike the previous week, market momentum has slowed to start the new week, so look for traders to potentially err on the side of caution to secure gains at any signs of weakness.
The Canadian dollar ended its five-week slide against the US dollar, in part on the back of strengthening crude, the country`s largest export improving, retail sales and the greenback generally cooling after dominating in the past month. The ICE Dollar Index, which measures the USD against a basket of the largest world currencies, dropped 0.77 percent last week after rising nearly 5 percent in the past five weeks. On the week, Canada`s dollar improved by 0.90%, or $0.008725 against the greenback, meaning next week will begin with one Canadian dollar buying US$0.98092.
Commodity Snapshot:
* Gold futures finally found some strength after four consecutive down weeks as a basket of economic data sparked a few concerns over inflation and helped soften the U.S. dollar. Outside of a larger swing on Tuesday, gold futures traded in a tight range again demonstrating that gold traders were seeing value in depressed prices, but also showing that caution is being exercised, creating the feeling of a spring being wound tightly, so analysts are expecting a larger move (one way or the other) in the near term. April contracts were the most actively traded during the past week, advancing $15.70 per ounce, or 1.0%, to $1,592.60.
* Silver futures remained range bound, now essentially trading sideways for three weeks. Simply, there have not been any catalysts to change traders opinion with mixed global economic cues and investors staying more heavily in equities at the moment with less attention going to precious metals. On the week, May contracts for silver were the most actively traded, nipping lower by 9.7 cents, or 0.34 percent, to $28.851 per ounce.
* Copper prices took on some volatility this past week with early-week data showing industrial production slowing in China, the world`s largest copper consumer, followed by optimistic data in the US signaling an ongoing strengthening of the economy and manufacturing conditions. Prices rose to two-weeks highs, but remained capped by statistics showing heavy stockpiles, discouraging a continued run and causing prices to give back most of the gains by the weekend. May contracts were the most actively traded on New York`s COMEX exchange during the week; eking up by 1.15 cents, or 0.33%, to $3.5205 per pound.
* Oil prices continued to climb, hitting their highest levels in March on Friday. Surprisingly, the rising prices came as the Energy Information Administration said that US oil inventories rose by 2.6 million barrels to 384 million barrels in the week prior, keeping levels above the seasonal average and at the highest level since 1983.
On the week, April contracts for West Texas Intermediate crude were the most actively traded; adding $1.50, or 1.63%, to $93.45 per barrel.
Equity Market Snapshot:
(All percentages on a weekly basis unless otherwise noted) * Major gold miners were still largely weak even with gold rising.
Goldcorp (TSX:G, -1.25%), Newmont Mining (TSX:NMC, -2.02%), Agnico-Eagle Mines (TSX:AEM, -0.22%) and Barrick Gold (TSX:ABX, -1.85%) shed points, while Kinross Gold (TSX:K, +0.00%) was flat and climbed, but Yamana Gold (TSX:YRI, +1.09%) moved ahead.
* The saga of the takeover attempt of Aurizon Mines Ltd. (TSX:ARZ, -1.10%) continued as the miner adopted a new shareholder rights plan trying to prevent Alamos Gold Inc. (TSX:AGI, -2.06%), who owns 16% of Aurizon stock currently, from using its voting power to stop a high-priced takeover offer from Hecla Mining Co. (NYSE:HL, -0.17%).
Alamos retaliated by asking the B.C. Securities Commission to remove the “poison pill” anti-takeover defense erected by Aurizon, claiming it stops shareholders from exercising their rights to accept the Alamos offer.
* In other mining news, Labrador Iron Mines Holdings Ltd. (TSX:LIM, -0.17%) said that it and a subsidiary of India`s Tata Steel Ltd.
reached a strategic co-operation pact in which Labrador Iron will sell a 51% stake in its Howse deposit to Tata Steel Minerals Canada for $30 million cash and the right to acquire a deposit from TSMC. Per the deal, the companies will also share a rail line and some equipment hauling ore from the Labrador-Quebec border area to the port of Sept-Iles, Que.
* Major energy plays were strong performers as crude prices climbed again. Imperial Oil Ltd. (NYSE:IMO, +0.57%), Suncor Energy (NYSE:SU, +1,77%), Exxon Mobil (NYSE:XOM, +0.45%), Talisman Energy (NYSE:TLM, +1.57%), Cenovus Energy (NYSE:CVE, +2.54%) and Canadian Natural Resources (NYSE:CNQ, +6.11%) all posted a winning week.
* Pacific Rubiales Energy Corp. (TSX:PRE, -10.59%) plunged after the natural gas and crude oil producer reported a quarterly net loss of $23.8 million, or 8 cents per share, compared to a net profit of $80.8 million in the year prior quarter. The company also said that it might have to divert 10 percent of its share of future production from a Colombian oil and gas field for 20 months to compensate Ecopetrol, a major Colombian energy company.
* The biggest of banks in the US posted steady gains this past week.
Goldman Sachs Group (NYSE:GS, +1.22%), Bank of America (NYSE:BAC, +4.14%), Wells Fargo & Co. (NYSE:WFC, +4.66%), Citigroup (NYSE:C, +1.24) and UBS AG (NYSE:UBS, +3.08%) all appreciated in value. XLF (NYSE:XLF, +1.46%), the financials select sector SPDR that tracks the financial stocks in the S&P 500, rose for the second week, reaching its highest level since late in 2008. JPMorgan Chase (NYSE:JPM, -0.36%) was a rare laggard.
* With the stress test now behind the big banks, Bank of America reported plans to repurchase $10.5 billion of common stock and preferred shares. Wells Fargo said it would increase its quarterly dividend payment to 30 cents per share, starting in the second quarter. J.P. Morgan Chase and Goldman Sachs both issued capital plans, but the Fed put conditions on theirs. JP Morgan was down largely last week because the fed is in the thick of an investigation about their massive trading losses of their “London Whale” a couple years ago, with commentary from the fed surfacing that the big bank knowingly misled investors about the situation.
* Canada`s biggest banks were underachievers compared to US banks.
Bank of Montreal (TSX:BMO, +0.34% was the only big bank to climb as Toronto-Dominion Bank (TSX:TD,-0.19%), Bank of Nova Scotia (TSX:BNS, -0.58%), ), Royal Bank of Canada (TSX:RY, -1.60%), Canadian Imperial Bank of Commerce (TSX:CM, -1.04%) and National Bank of Canada (TSX:NA, -1.20%) all docked points.
* Blackberry (TSX:BB) had a strong week on news that an unnamed partner had placed and order to begin shipping immediately for one million of its new BlackBerry 10 devices, the largest single order in the history of the company. The phonemaker also got good news from U.S. carriers as the phone will be available from all of the majors in the U.S. over the course of about a week, starting on the 22nd. The new BlackBerry`s are already available in 21 other countries around the world, including Canada, UK and Germany.
* Shares of Carnival Cruise Lines (NYSE:CCL, -2.02%) slipped after its Carnival Legend cruise ship experienced technical issues with its propulsion system, causing the cruise to skip a stop in the Grand Cayman Islands and putter its was back to Tampa, Florida. Just the latest in a string of problems the company has had recently (four total in a few weeks), the icing on the cake was the cruise ship operator lowering its full-year outlook.
* Krispy Kreme Doughnuts (NYSE:KKD, -1.02%) reported Q4 revenue increased 15.9 percent to $118.1 million, compared to $102.0 million in the year prior quarter. Net income for the quarter was $4.8 million, or 7 cents per share, versus $143.5 million, or $2.01 per share, in the fourth quarter of 2011. The 2011 quarter included an unusual credit of $139.6 million from the reversal of valuation allowances on deferred income tax assets. Non-GAAP net income equaled $7.4 million, or 11 cents per share, up from $4.0 million in the year prior quarter. Wall Street was still expecting earnings per share of 12 cents on revenue of $115.9 million.
* Men`s Wearhouse Inc. (NYSE:MW, +15.70%) saw shares run after narrowly beating revenue expectations for the fourth quarter by reporting $608.43 million in sales (analysts predicted $607 million), even though it posted a 7 cents per share net loss which was 1 cent more than analyst predicted. Shares surged primarily because of a newly announced $200 million share buyback and improved guidance.
* Shares of Air Canada (TSX:AC.B, +3.00%) continued to climb after news that the federal government would give the airline more time to eliminate the $4.2-billion deficit in its pension plan, although not without stipulations. See our write-up on the lifeline here:
(http://www.allpennystocks.com/aps_ca/special-reports/335/air-canada-gets-7-year-extension-on-pension-fund-deficit-repayment.htm).
* Also from the air strip, shares of Boeing Co. (NYSE:BA, +6.40%) continued a month-long surge after the Federal Aviation Administration said that the aircraft maker can start testing its proposed fix to the lithium battery problems that have grounded its 787 Dreamliners since mid-January.
* E*Trade (NASDAQ:ETFC, -5.71%) shares dropped after news hit that Citadel LLC, its largest shareholder has bailed on the company and is selling its entire 9.6 percent stake in the online broker.
* Shares of Netflix, Inc. (NASDAQ:NFLX, +0.08%) inched ahead after the online movie rental company announced the launch of a Facebook (NASDAQ:FB, -4.70%) app for US customers that will permit users to link the Netflix and Facebook accounts to share what they have been watching.
* Ligand Pharmaceuticals (NASDAQ:LGND, +1.31%) said that it signed global license and supply agreements with Spectrum Pharmaceuticals (NASDAQ:SPPI, -34.18%) to develop and commercialize Ligand’s Catisol-enabled, propylene glycol-free melphalan, currently in Phase III clinical trials as a treatment for multiple myeloma patients before they receive an autologous stem cell transplant. The agreement helped slow the plummet of Spectrum that began a day earlier when the biotech reduced its guidance by cutting expected sales for Fusilev, its flagship cancer drug, by about 50 percent.
* Dick`s Sporting Goods (NYSE:DKS, -7.11%), the largest U.S.-based full line sports gear retailer reported a 12 percent increase in total revenue to $1.81 billion for the quarter. Profits for the latest quarter were $129.7, or $1.03 per share, versus 88 cents per share in the year earlier period. Both figures were short of Wall Street expectations of $1.86 billion in sales and earnings per share of $1.06. Worse yet, the company whiffed on guidance for EPS for the quarter and the year.
* In some IPO news, smart grid company Silver Spring Networks (NYSE:SNNI) soared from its opening price on Wednesday of $17 per share to as high as $22.50 before settling the week at $21.30, for better than 25 percent gains. The IPO was largely backed by Foundation Capital. The IPO gave the company about $81 million and set an initial valuation around $750 million.
Weekly Indices Results:
The S&P TSX Composite Index teetered back and forth in positive and negative territory before ending the week tepidly down; slipping only 5.58 points, or 0.04%, to 12,830.03. The TSX Venture Exchange performed similarly, edging lower on the whole for the week by 0.70 points, or 0.06%, to 1,117.15.
In the States, the Dow Jones Industrial Average continued its climb to record highs; rising 117.04 points, or 0.81%, to 14,514.11. The much-broader S&P 500 continues to squeeze on its all-time high; adding 9.52 points, or 0.61%, to close at 1,560.70. The tech-rich NASDAQ Composite rose for the third straight week; advancing by 4.70 points, or 0.14%, to 3,249.07.
Canadian Economic Data:
* The New Housing Price Index rose 0.1% in January, following a 0.2% increase in December and in line with economist expectations.
Statistics Canada said that the gain was led by a 0.3 percent increase in Toronto. Compared to January 2012, home prices had increased 2.2 percent.
* The Canadian Real Estate Association (CREA) said national home sales activity edged back down on a month-over-month basis in February 2013 following an increase in January. National home sales declined 2.1% from January to February. Actual (not seasonally adjusted) activity came in 15.8% below levels in February 2012. The MLS Home Price Index increased 2.7 percent, its smallest gain since March 2011.
This week, major economic data will include International Transactions in Securities on Monday; Wholesale Trade and the Monthly Survey of Manufacturing on Tuesday; and Employment Insurance and Retail Trade on Thursday.
U.S. Economic Data:
* The Commerce Department reported that retail sales jumped 1.1 percent in February, marking the biggest climb in five months and signaling that higher taxes are not slowing citizens from spending.
The report easily topped economist predictions of a 0.5 percent rise.
So-called “core” retail sales – a measure that excludes autos, gas and building materials – climbed 0.4 percent.
* The Labor Department reported that first time filings for jobless benefits dropped to 332,000 in the week ended March 9 from an upwardly revised 342,000 in the week prior. Economists had expected initial jobless claims to increase to 350,000. The four-week moving average, a less-volatile gauge of the labor market, fell by 2.750 to 346,750, the lowest level in nearly five years.
* The Department of Labor also said that a surge in gasoline prices of 7.2 percent pushed the Producer Price Index up by 0.7 percent in February, following a 0.2 percent increase in January. Across 12 months, the PPI was up 1.7 percent. “Core” PPI, which excludes the volatile food and energy sectors, rose 0.2 percent, in line with expectations.
* The Labor Department also reported that the Consumer Price Index, a measure of a basket of goods and services purchased by consumers considered by economists as a broad gauge of inflation, rose by 0.7 percent in February, outpacing economist predictions of a 0.5 percent rise in prices. It was the largest one-month move since June of 2009.
Again, higher gas prices were largely attributed for the rise in monthly CPI. In the twelve months through February, the CPI rose 2.0 percent, in line with goals of the Federal Reserve and giving little reason for the Fed to change any of it monetary easing policies.
* Industrial production jumped more than expected in February, signaling that the US economy continues to rebound. The Federal Reserve said that industrial production rose 0.7 percent for the month, beating economist predictions of a 0.4 percent rise and marking the biggest gain in three months, paced by increases in output of business equipment and motor vehicles.
* In one of the few pieces of poor economic data last week, the Thomson Reuters/University of Michigan Consumer Sentiment Index fell from 77.6 in February to 71.8 in the first reading for March, representing the lowest level since December 2011. Economists were expecting the gauge of how consumers feel about their money and the state of the economy to rise to 78.0 for the month.
This week, data in the States will include Housing Starts on Tuesday; FOMC minutes on Wednesday; and Initial Jobless Claims and the Philadelphia Fed Survey on Thursday.
Technical Penny Stocks to Watch & Company Spotlight Results:
Amongst our “Daily Technical Penny Stocks to Watch,” our biggest mover was RenRen Inc. (NYSE:RENN), which was posted as our first technical penny stock to watch of the week when the stock price was at $3.07.
The stock inched its way higher throughout the week to a high of $3.24 on Thursday, representing gains of 5.54%, 17 cents per share, before some serious profit taking on Friday pulled the stock price back downward on Friday.
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