Tag - LIZ

Stocks were up today in reversing the downward trend from the week with leadership from financials and healthcare. Most notably blue chips JPMorgan Chase & Co. (NYSE:JP), Goldman Sachs (NYSE:GS), Pfizer (NYSE:PFE), and Merck (NYSE:MRK) were up. Rounding out the leaders in financial were Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC).

The Dow ended the day's trading session up 0.69% to close at 8,555 while the Nasdaq declined 0.02% and the S&P 500 saw gains, closing at 918, up 0.84%.

Small-cap bellwether Russell 2000 Index, representing the 2,000 largest small-cap stocks, closed up 0.36% to 509.

Leading small cap gainers reflected the broader push top leaders in financials including National Penn Bancshares (Nasdaq:NPBC) up 31.4%; American Capital (Nasdaq:ACAS) up 27.1%. Other gainers include Myriad Pharmaceuticals (Nasdaq:MYRXV) up 15.7%; Nelnet (NYSE:NNI) up 30.5%; and Talbots (NYSE:TLB) up 16%.

Small-cap decliners were lead by Liz Claiborne (NYSE:LIZ) down 25.9%, on forecasts of larger than expected losses. The company gave no indication for the larger losses other than the message from all apparel companies that consumers are cutting back on what they consider nonessential purchases. Liz Claiborne reported a loss of 37 cents per share in the first quarter, excluding one-time items. Analysts had forecast 33 cent loss per share for the second quarter. No guidance was provided by the company as to what the revised forecast might be. This played into investor concerns as sellers look to unload shares as reflected in higher than normal volume.

In other news concerning Liz Claiborne, the company announced yesterday that it intends to offer $75 million in convertible senior note due 2014. It is the company's intention to use the proceeds to pay down a portion of borrowings under an amended credit facility. 

*****10 banks have paid back $68 billion in TARP loans. Including some smaller banks that have already repaid loans, the total is now over $70 billion. Even though the repaid money was raised from secondary stock offerings, which dilute shareholder value, it's still something of a positive sign, I suppose.

Now, what's going to happen to the money? Will it sit in the TARP fund? Will it be used to back other loans to small businesses?

This is an inflation issue. The money supply has increased by around $1 trillion in the last year (much of the bailout "funds" have been loan and asset guarantees that haven't increased the money supply, yet). It's the Fed's job to contract the money supply to keep price inflation in check.

This is the problem with creating money - you have to be willing to "uncreate" it at some point. With unemployment as high as it is, inflation is not yet a concern. But that will change eventually, and the Fed will have to have the resolve to contract the money supply when the economy starts showing signs of life.

As we've seen in the past, an economy that gets hooked on liquidity is very hard to wean. I personally have my doubts as to whether this Fed will be able to avoid the Greenspan legacy of allowing asset bubbles to form. So we want to be ready to profit form whatever asset bubbles arise in the future.

This is one of the topics we'll be discussing in next Wednesday's Video Conference. It's titled Inflation Busters: Discover the Stocks to Grow and Protect Your Wealth and will air on Wednesday, June 24 at 6:00 P.M. It's free to attend, you can sign up HERE

*****Stocks are trying to put an end to the sell-off that started with Monday's big decline. The S&P 500 is within a few points of its 200-day moving average. It's also less than 20 points from its 50-day moving average.

One of the simplest trend following systems focuses on the crossover of the 50-day and 200-day MA. When the 50-day MA crosses above the 200-day MA, it signals a trend change from bear to bull. When the 50-day MA falls below the 200-day MA, it signals a change from bull to bear.

So, the current trading is very significant to technical traders. The S&P 500 is flirting with a major buy signal. It should be noted that the Nasdaq flashed the moving average crossover buy signal a few days ago. I would view the moving average crossover on the S&P to be confirmation of the Nasdaq signal.

*****Jason Cimpl, technical analyst at TradeMaster Daily Stock Alerts, isn't waiting. He's expecting a strong bounce and recommended 3 upside positions to his readers yesterday. One of them, the Direxion Technology Bull (NYSE:TYH), is a leveraged ETF that seeks triple the daily gains on the Russell 1000 Technology Index. That trade finished the day with a 3% gain.

Don't forget the new Daily Profit feature - Jason will give us another video chart analysis session tomorrow. In last Friday's edition he pretty much nailed this week's trading so I can't wait to see what he has to say about next week.
 
*****I'm itching to recommend a new stock to Daily Profit readers. We did pretty well with Graham Corp (AMEX:GHM) and Hovnanian (NYSE:HOV) earlier in this rally. 

I can't say I feel comfortable recommending Molecular Insight Pharmaceutical (Nasdaq:MIPI), but the story that came out yesterday is pretty darned interesting. The biotech announced that it can both detect and treat prostate cancer with its imaging agent, Trofex. And instead of the usual 5 tests including MRI and ultrasound, Molecular Insight can collect the necessary data for diagnosis within 2 hours of the Trofex injection.

The stock was up 42% to $6.24 yesterday. Of course, like most small biotechs, Molecular Insight is burning through cash like a teenager at the mall. But if this technology is viable, the stock will go a lot higher than $6.24.

Just thought you'd like to know…talk to you tomorrow.

 

 

Clearwater Paper Corp. (Nasdaq:CLW), Canadian Solar Inc. (Nasdaq:CSIQ) and Liz Claiborne Inc. (Nasdaq:LIZ) are among the biggest percentage gainers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Century Aluminum Co. (Nasdaq:CENX), Patriot Coal Corp. (Nasdaq:PCX), McMoRan Exploration Co. (Nasdaq:MMR), Venoco Inc. (Nasdaq:VQ), Mercury Computer Systems Inc. (Nasdaq:MRCY) and Liquidity Services Inc. (Nasdaq:LQDT).

Stocks reversed course mid-week and made solid gains today thanks to bargain-hunters who were on the prowl, and on rumors that China may release a new stimulus package. Some of today’s small-cap gainers were Toreador Resources (Nasdaq:TRGL), DryShips (Nasdaq:DRYS) and ADC Telecommunications (Nasdaq:ADCT).

Other Market Watch highlights today included:

• The Russell 2000 (NYSE:IWM) closed up 6.46, or 1.79%, to 367.47. The Dow closed up 2.09% to 6,866.44 and the S&P 500 closed up 2.38% to 712.87. 
• For the year, the Russell is now down 26.43%, the Dow is down 21.76% and the S&P 500 is down 21.08%.
• The Fed released a survey today that showed the U.S. economy has deteriorated in the past 2 months and that the outlook for a quick recovery is bleak.
• ADP Employer services reported this morning that private employers cut 697,000 jobs in February versus a revised 614,000 jobs lost in January. The January job cuts were originally reported at 522,000.
• Rumors that China may announce a huge stimulus bill lifted global stock markets higher overnight.
• The Obama administration released a foreclosure prevention program today that also helped buoy stocks higher.
• Oil prices climbed 9% to $45.38 after global stock markets rallied and the U.S. government reported that crude levels in storage unexpectedly shrank.

Small Cap Gainers:

• Toreador Resources Corporation climbed 25% today after completing its Black Sea assets sale. See (Nasdaq:TRGL).
• DryShips closed up 40% following an update of its sale and purchase activities released on Tuesday. See (Nasdaq:DRYS).
• ADC Telecommunications rose 29% after reporting Q1 results and . . .

Small-cap stocks pushed higher Tuesday, as investors tried to balance ongoing worries about the economy and corporate profits versus hope for fresh stimulus funds. Short-term oversold conditions likely played a supportive role as well. Some of today’s small-cap gainers were Targanta Therapeutics (Nasdaq:TARG), ZymoGenetics (Nasdaq:ZGEN) and Aercap Holdings NV (NYSE:AER).

Other Market Watch highlights today included:

• The market appeared to slip initially, then staged a recovery move during the first speech of the year by Fed Chairman Ben Bernanke.
• Bernanke said this morning that TARP funds should be directed toward toxic mortgage-backed assets, which was news that traders seemed to openly embrace.
• The international trade report showed that the U.S. deficit narrowed by 28.7% in November, which marked the largest contraction in 12 years. 
• On the commodities scene, gold climbed and copper reversed a big overnight decline in Asia to trend higher.
• Crude oil prices closed out the day with a modest gain of $0.19 a barrel, which was off the U.S. trading session highs, but still quite a bit better than losses seen in overseas action.
• Gains in energy and other commodities were hampered somewhat today by a strong tone in the U.S. dollar, which rose 1.4% against the euro. 
• Looking ahead to Wed., the market will see a ramp up of econ data, with retail sales, import prices and biz inventories out in the morning. 

Small Cap Gainers:

• The Medicines Company announced it will acquire Targanta Therapeutics. Targanta shares closed up a whopping 109%. See (Nasdaq:TARG).
• Bristol-Myers to buy ZymoGenetics’ experimental Hepatitis C drug. Shares of ZymoGenetics popped 26%. See (Nasdaq:ZGEN).
• Aercap Holdings NV soared 25% as the Netherlands aviation firm . . .

Small-cap stocks continued to grind higher into midday, with energy, real estate trusts and financial shares showing the way. A recovery bounce in crude oil and oversold conditions on energy stocks sparked money flow into that arena and provided a lift to the overall market. Some of today’s small-cap gainers were Developers Diversified Realty Corp.  (NYSE:DDR), BigBand Networks Inc. (Nasdaq:BBND) and Union Drilling Inc. (Nasdaq:UDRL).

Other Market Watch highlights today included:

• Bernanke said this morning that TARP funds should be directed toward toxic mortgage-backed assets, relieving many traders.  
• On the commodities scene, gold climbed and copper reversed a big overnight decline in Asia to trend higher.
• Energy stocks appeared to get a lift from a recovery rally in crude oil futures, which reversed a $1 per barrel decline in overnight trading.  
• The worst performers were electronic component makers, aluminum stocks, tire companies, industrial conglomerates and auto manufacturers

Small Cap Gainers:

• Small-cap REIT Developers Diversified Realty Corp. soared 18% as the shopping center management firm recovered from steep losses Monday. See (NYSE:DDR).
• BigBand Networks Inc. rallied 17% as investors appeared to be taking a stab that the video networking solutions firm will announce decent earnings Thursday afternoon. See (Nasdaq:BBND).  
• Among the various energy companies in rally mode today, natural gas firm Union Drilling Inc. was up 13%. See (Nasdaq:UDRL).

Small Cap Losers:

• Cepheid gapped lower and fell 18% gene analysis firm reported earnings that didn’t match up with investor expectations. See (Nasdaq:CPHD).  
• Prestige Brands lowers guidance; stock slumps over 13%. See (NYSE:PBH).   
• AMB Property Corp. slipped 8% as the firm made some dividend announcements. See (NYSE:AMB).  
• Liz Claiborne lowers view, inks credit amendment; stock slides 4%. See (NYSE:LIZ).  

The Russell 2000 (NYSE:IWM) closed down 1.35% as the stock market limps into the final six trading sessions of a year that could be the worst since the Great Depression era. Some of today’s small-cap gainers are Scopus Video Networks (Nasdaq:SCOP), Spartan Chassis (Nasdaq:SPAR) and Colony Unico American Corp. (Nasdaq:UNAM).

Other Market Watch highlights today included:

• The new home sales report came in at an annualized rate of 407,000 units, which was below the forecast for 415,000.
• The truly scary news came from the existing home sales data, which showed sales at an annual rate of 4.49M units, off the 4.93M forecast. 
• Retailer shares also were a drag on the market as stores are getting a chilly reception this holiday season from consumers.
• The S&P Retail Index slipped 1.4% today, and big department stores were among the weakest performers on the session. 
• With a short trading week in tow, the market is getting force-fed a sizable batch of economic data into just a two-day window.
• Crude oil prices tumbled to a contract low today and eventually settled down $0.93 a barrel at $38.98, losing about 2.3% on the session.
• On the docket Wednesday, market watchers will get a chance to react to personal income data, durable goods and weekly claims.

Small Cap Gainers:

• Scopus Video Networks Ltd. jumped 41%, gapping higher on unusually heavy volume on news that the digital video networking firm would be purchased by Harmonic Inc. for $5.62 a share in cash. See (Nasdaq:SCOP).
• Spartan Chassis has reached an agreement with the U.S. government in connection with an investigation of military contracting in South Carolina. Shares . . .

The Russell 2000 (NYSE:IWM) closed down 11.85% today, snapping a string of five consecutive winning sessions with the worst daily loss of the year. Some of today’s small-cap gainers are Mentor Corp. (NYSE:MNT), Premiere Global Services (NYSE:PGI) and Telvent (Nasdaq:TLVT).

Other Market Watch highlights today included:

• The Russell is now down 46% for 2008, while the Dow is down 39% and the S&P 500 is down 44%.
• Credit market safe havens were the preferred outlet of choice today, as investors fled stocks and sought refuge in Treasuries.
• The market got off on the wrong foot today when manufacturing data out of China reflected a big drop in new orders.
• The ISM Manufacturing Survey came in at 36.2, which was below the 38 forecast, and which was also the lowest reading in 26 years.
• Sub-index data on prices paid was the lowest in 59 years and the new orders sub-index was the lowest since 1980.
• Energy, commodity stocks were major decliners today. Crude prices plunged 9.4% to $49.28/barrel, pulling down energy shares in the wash.
• Industrial, precious metals took a beating, platinum was down 7%, palladium down nearly 10%, silver off more than 8% and gold down some 5%.

Small Cap Gainers:

• The biggest mover today was Mentor Corp. (NYSE:MNT), as the maker of breast implants shot some 90% higher on news that the firm would be purchased by Johnson & Johnson (NYSE:JNJ) for $31 a share.
• Premiere Global Services Inc. (NYSE:PGI) rallied 29% as the on-demand . . .

Small-cap stocks may have finished out November like a lamb, but they started out December like a lion, sinking hard and fast today in an abrupt about-face from last week’s strong upward surge. Slumping manufacturing reports around the world triggered today’s rout and the only safe place to park money was in credit instruments as financial, industrial, retail and commodity markets were in retreat mode. The Russell 2000 (NYSE:IWM) closed down 56.05, or 11.85%, at 417.09, snapping a string of five consecutive winning sessions with the worst daily loss of the year. The Russell is now down 46% for 2008, while the Dow is down 39% and the S&P 500 is down 44%.

Credit market safe havens were the preferred outlet of choice today, as investors fled stocks and sought refuge in Treasuries – especially after Federal Reserve Chairman Ben Bernanke said that the Fed could buy long-dated Treasuries and that the economy remained under considerable stress. He also said that the Fed’s scope for reducing rates to stimulate growth was limited at this point, but that the U.S. economy was now better equipped to deal with the credit crisis. Yields on benchmark 10-year notes went wild, sinking more than 7% at one point during the day to about 2.7% as strong demand for notes lifted the price and slashed yields. Treasury Secretary Henry Paulson said that recent bailout moves were making progress, that banks should increase lending habits and that he has more programs developing to boost lending. He also said that mortgage rates have not come down as much as hoped and that Americans know the economy is in recession. The market extended the afternoon sell-off as he spoke.

The market got off on the wrong foot today when manufacturing data out of China reflected a big drop in new orders. China is the world’s hub for labor, with widgets assembled there and shipped out around the globe. Then, manufacturing reports out of Europe were dour, setting the stage for a startlingly bad report on manufacturing activity here in the United States. The ISM Manufacturing Survey came in at 36.2, which was below the 38 forecast, and which was also the lowest reading in 26 years. What’s more, sub-index data on prices paid was the lowest in 59 years and the new orders sub-index was the lowest since 1980. This is a heavy week for economic data, and today’s numbers clearly sent an icy shudder through the market. As the week progresses, we’ll see data on vehicle sales, services sector activity, factory orders and weekly claims as we head toward Friday’s big monthly employment release. What’s more, we’ll also have weekly and monthly retail sales numbers to pour over, . . .

Small-cap stocks extended the morning free fall, with financial, retail and commodity sectors all taking a beating as investors recoiled from a batch of brutal manufacturing data from around the world and fretted about the true eventual returns from this holiday spending season. At 12:27 p.m. ET, the Russell 2000 (NYSE:IWM) was down 30.90, or 6.53%, at 442.24.

New manufacturing orders plunged in China, which is the world’s fourth-largest economy and a key source of labor for goods then exported to trading partners throughout the planet. That somber tone on manufacturing was only deepened when the ISM Manufacturing Survey for the United States came out this morning at 36.2, which missed the 38.0 forecast and was the worst reading in 26 years. Just to emphasize the point of how bad things are, the employment sub-index on the ISM report was the worst in 17 years, the new orders sub-index was the worst in 28 years and the priced paid sub-index was the worst in 59 years.

Financial stocks and energy shares were among the hardest hit stock market components through mid-session trading, with the Financial Select Sector SPDR Fund and the Energy SPDR both off about 7%. Looking at individual broad market sectors, there are none above 1% gains right now, and 10 sectors with losses greater than 10%. The biggest declines were seen for industrial REITS, oil equipment, investment banks, coal, specialized finance, oil and gas drillers and consumer finance.

Crude oil prices were down some 8% so far today, with U.S. crude benchmark values slipping through the $50 support line. The dollar was firm against the euro, which further played into the collapse in commodity markets; the Commodity Research Bureau Index of 19 physical markets was down 3.2% at midday.

Retail stocks were also taking a hit today, with the S&P Retail Index down about 5.7% despite early press reports that the Black Friday kickoff of the holiday shopping season saw a rise in sales and traffic. The fact that the market was sinking fast today makes some of those upbeat reports on Black Friday business seem quite suspect, but perhaps investors are simply ramping down expectations for the entire season. Today is known as “Cyber Monday” when consumers supposedly dash to online shopping sites to scoop up bargains in time for the postman to deliver before Christmas, so details on how today’s online shopping is moving along could have an impact on afternoon . . .

Small-cap stocks went into free-fall mode into midday trading, pulled down by worries a collapse in the nation’s auto manufacturing business could sweep into a wider problem for an economy already in the throes of recession. In addition, money continues to move out of equities and into credit instruments as investors seek safe-haven outlets to try and ride out this storm. That safe-haven mentality also takes a deeper toll on small caps, which are seen as even riskier than large-cap companies. Today’s small-cap gainers are Orexigen Therapeutics Inc. (Nasdaq:OREX), Bank of Ireland (NYSE:IRE) and Bristow Group (NYSE:BRS). 

Other Market Watch highlights today included:

• While industrial metals such as copper have been pummeled by the economic crisis, gold stands to benefit by panic in financials.  
• The push for safe-haven outlets has extended into the gold market, with global demand for the yellow metal soaring 18% in the 3rd quarter.  
• Yields on benchmark 10-year notes tumbled more than 3.5% at mid-session as investors made a stampede for Treasury products.  
• Small-cap stocks went into free-fall mode into midday trading, pulled down by worries of a collapse in the nation’s auto manufacturing business.

Small Cap Gainers:

• Orexigen Therapeutics Inc. is up 14% without any apparent fresh news behind the move. See ( Nasdaq:OREX).  
• Post Office enters talks with the Bank of Ireland over unlimited guarantee account; IRE shares climb nearly 8%. See (NYSE:IRE).  
• Bristow Group pops up over 7% after announcing preferred dividend. See (NYSE:BRS). 
• Premiere Global Services up 7.5% on heavier-than-average volume. See (NYSE:PGI). 

Small Cap Losers:

• Century Aluminum Co. tumbled 31%, hitting a 52-week low. CENX peaked above $80/share in May – now it's trading below $6. See (Nasdaq:CENX).  
• Liz Claiborne hit a new 52-week low of $2.53 today and is currently down about 20% as the retail sector continues to bruise from the crippled economy. See (NYSE:LIZ).
• GM was down 15% on perceptions that this week’s lobby efforts by auto executives in Washington might not yield a rescue package. See (NYSE:GM).  
• Strategic Hotels & Resorts is down another 13%, continuing its steep decline seen in the past few weeks and making a new 52-week low of $1.10 today in the process. See (NYSE:BEE).

Shares of Liz Claiborne Inc. (NYSE:LIZ) slid 3.7% this morning after the company announced an end to its partnership with Narciso Rodriguez.

The designers first teamed up in May 2007. At this point, Narciso Rodriguez will regain full ownership of the trademarks and business bearing his name and Liz Claiborne will cease ongoing investment in the business.

Liz Claiborne said in a statement issued before the bell this morning that differences emerged over time on how best to grow the business organically.

By midday Liz Claiborne is at $13.40, down $0.52 from Tuesday’s close. The stock has ranged between $11.08 and $35.29 in the past year.

For detailed price information and news stories on Liz Claiborne, click LIZ.

Beauty products company Elizabeth Arden, Inc. (Nasdaq:RDEN) said after Wednesday’s close that it has contracted a long-term global licensing agreement with Liz Claiborne Inc. (NYSE:LIZ) to manufacture and distribute Liz Claiborne fragrance brands.

Elizabeth Arden says the venture will enable it to augment market share in its North American fragrance business and garner efficiencies from a larger fragrance business in its supply chain, logistics and sales organizations. Additionally, the company says the agreement will increase gross margins and sales volume for its international business.

Shares popped 15%, or $2, to $15.38 in late morning trading. For detailed price information and recent news stories about Elizabeth Arden, click RDEN.