TSX May Trim Gains On Easing Commodities, Profit Taking

Canadian stocks may open lower Thursday on easing commodities prices and worries resurfaced over Greece debt situation. Moreover, the main index ended at its best level in 17 months, which could prompt profit taking at higher levels.

The U.S stock futures also point to a flat opening.

Earlier, markets in Europe and the euro were under pressure on lack of clarity about the Greece's future after reports said the country could seek aid from the International Monetary Fund if European Union failed to support.

On Wednesday, the S&P/TSX Composite Index edged up 11.26 points or 0.09% to finish at 12,100.66, its highest closing since September 2008. The index gained around 4% so far this month.

The price of oil moved down $0.64 to $82.29 a barrel on concerns over demand growth. Meanwhile, bullion was almost flat after gaining over 2% so far this week.

In corporate news, oil and natural gas explorer Cequence Energy (CQE.TO) reported narrower loss of C$0.41per share for the full year 2009, compared to C$0.84 per share in the prior year.

Exploration services provider Open Range Energy (ONR.TO) reported a lower funds from operations of C$0.14 per share for the fourth quarter, compared to C$0.23 per share in the prior year quarter.

Oil and gas industry services provider Wenzel Downhole Tools (WZL.TO) slipped into the red in 2009, reporting a net loss of C$0.05 per share compared with a profit of C$0.41 per share a year ago.

Food products company Premium Brands Holdings (PBH.TO) reported fourth-quarter earnings of C$0.19 per share, up from C$0.18 reported in the prior-year quarter. However, earnings missed consensus estimates for a profit of C$0.32 per share.

Mineral explorer Almaden Minerals (AMM.TO) said it has closed a private placement of 350,000 units at $1.00 per unit.

Mineral explorer European Goldfields (EGU.TO) reported fourth-quarter net loss of $0.04 per share, compared with a profit of $0.04 per share last year.

Gold and silver explorer Starcore International Mines (SAM.TO) posted second-quarter net income of C$77 thousand compared with a net loss of C$22 thousand in the previous-year period.

Silver producer Great Panther Silver (GPR.TO) reported fourth-quarter net income of C$0.01 per share, compared to a loss of C$0.02 per share during the same quarter last year.

Water treatment company BioteQ Environmental Technologies (BQE.TO) reported a net loss of C$0.08 per share for fiscal 2009, compared to a loss of C$0.09 per share a year ago.

Gaming software developer Chartwell Technology (CWH.TO) reported a net loss of C$0.8 million or C$0.04 per share for the first quarter, compared to a net loss of C$0.7 million or C$0.04 per share in the same quarter of last year.

Management technology services provider Solium Capital (SUM.TO) reported net earnings for the fourth quarter at C$0.012, flat with last-year quarter.

Insurance services provider Intact Financial (IFC.TO) announced plans to issue medium term notes for $100 million.

Canadian Helicopters Income Fund (CHL_UN.TO) reported fourth-quarter net earnings of C$0.20 per unit, compared to a loss of C$0.03 per unit in the prior-year quarter.

In economic news, Statistics Canada said foreign investments in Canadian securities continued to grow, hitting $11.8 billion in January, with more growth seen in debt instruments. Meanwhile, Canadians withdrew $5.8 billion from their holdings of foreign securities in the same period.

From the U.S., the Labor Department said consumer price index was unchanged in February after increasing by 0.2% in each of the five previous months. Economists were expecting consumer prices to edge up 0.1%.

In other report, the Labor Department said initial jobless claims edged down to 457,000 from the previous week's unrevised figure of 462,000. Economists were expecting claims to come in at 455,000. The report added that continuing claims, a reading on the number of people receiving ongoing unemployment help, rose to 4.579 million in the week ended March 6th from the preceding week's revised level of 4.567 million.

Indian Market Ends Lackluster Session Modestly Higher

 Late buying helped the Indian market end a lackluster session modestly higher on Thursday. While global cues offered little support, highly stock-specific buying and sustained foreign fund inflows helped the market end higher for a third straight session.

Standard & Poor's Ratings Services today raised its rating outlook on India to stable from negative, taking note of the government's efforts to contain its fiscal deficit in the next financial year starting April 1. The ratings agency also affirmed the country's long-term and short-term sovereign credit ratings.

After moving in a narrow range of 17,548-17,418, the 30-share BSE Sensex finished at 17,519, up 29 points or 0.17% and the Nifty rose by 14 points or 0.27% to 5,246. Second-line stocks also received modest buying support and decliners outpaced gainers by 1566 to 1259 on the BSE.

Rate-sensitive banking stocks outperformed after data showed India's annual food inflation eased to 16.30% in the week to March 6 from 17.81% a week before, continuing the downward trend for the second straight week.

SBI edged up 0.18%, ICICI Bank gained 1.19%, Axis Bank added 1.68% and United Bank of India gained over 4% on its debut, while HDFC Bank ended down 0.23%.

In the telecom sector, Bharti Airtel, which submitted its bid for 3G spectrum on Thursday, ended up 0.69%. Reliance Communication rose over 2% after partnering with Polycom for video conferencing services.

Tata Teleservices soared 4.67% after it sold its tower business to Quippo-Wireless TT Info Services for an enterprise value of Rs 1,318 crore. Idea Cellular, which received a clean chit from government-appointed auditors, rallied 4.66%.

Metal stocks gained despite lower commodity prices. JSW Steel and SAIL rose over 2% each, Hindalco gained 1.56%, NALCO added 1.27% and Tata Steel ended up 0.90%.

Software exporter TCS, which touched its all-time high on Wednesday, ended down 1.64% on profit taking, while Infosys closed at a record high, adding 1.66%. Wipro fell 1.47%, HCL Technologies declined 1.56% and Tech Mahindra lost 1%.

Mortgage lender HDFC rose 0.27% on a brokerage upgrade. Oil explorer Reliance Industries advanced 0.80%. Jaiprakash Associates (up 2.53%), Reliance Infrastructure (up 1.42%), DLF (up 1.12%), Hindustan Unilever (up 0.71%), Hero Honda Motors (up 0.58%) and ACC (up 0.51%) also closed notably higher, while Tata Motors and BHEL closed unchanged with a positive bias.

Engineering and construction giant Larsen & Toubro slipped 0.40% on profit taking following an over 4% gain in the past two sessions. Iron ore producer NMDC eased 1.46%. ONGC fell almost 2%, Mahindra & Mahindra shed over 3%, Tata Power lost 1.27%, NTPC declined 1.25%, Sterlite Industries slipped 0.92%, ITC gave off 0.89% and Maruti Suzuki ended down 0.89%.

Bajaj Electricals gained 3.41% on the back of multiple bulk deals. McNally Bharat Engineering Company edged up 0.13% on bagging a Rs.173.29-crore contract from Mahanadi Coalfields. Fedders Lloyd rallied 4.29% and Nitin Fire Protection Industries rose 0.74% on winning new orders.

Kovai Medical Center & Hospital (up 11%), Piramal Life Sciences (up 11.5%) and Shasun Chemicals & Drugs (up 10%) soared on heavy volumes.

Elsewhere, Asian stocks ended on a mixed note, taking cues from lower commodity prices and the strong U.S dollar, while European stocks edged lower on Thursday as investors paused for breath after a two-day rally.

Trading in the U.S index futures suggested that the Dow could drop 8 points at the opening bell on Thursday as investors await consumer inflation and weekly jobless claims data for further clues on the health of the world's largest economy.

UK Car Production Increases For Fourth Straight Month In February : SMMT

(RTTNews) - British car production increased for the fourth consecutive month in February, a report from the Society of Motor Manufacturers and Traders showed on Thursday.

The car production increased 62.7% on an annual basis to 97,255 units in February.

Paul Everitt, SMMT chief executive said,"Manufacturers and government need to work together to ensure that there is continued investment in new products and technology to sustain future growth,"

"Industry looks to next week's Budget to maintain stability in demand through continued investment in new products." he added.

For the year to date period, car production increased 63.8% compared to the same period of the previous year. During the period, car output totaled 198,445 units.

The commercial vehicles production climbed 74.2% on an annual basis to 10,226 units in February, while UK engine production was up 58.9%. At the same time, total vehicles production rose to 63.7% to 107,481.

Overall Demand For U.K. Goods Remains Weak: CBI Survey

(RTTNews) - Overseas demand for U.K. made goods continued to recover, but overall demand remained weak, a monthly Industrial Trends Survey from the Confederation of British Industry showed on Thursday.

Around 14% of manufacturers said total order books remained above normal, while 51% said they were below normal. The resulting balance of negative 37% was broadly unchanged from the previous two months.

Nearly 22% of respondents said export orders were above normal and 40% said they were below normal. The resulting negative 18% was an improvement on the previous month's figure of negative 23%.

Looking forward, only a modest rise in production is expected in the next three months. At the same time, price expectations reached the highest since September 2008.

Ian McCafferty, CBI Chief Economic Adviser said, "Our survey shows that UK exports orders are steadily improving as global demand is starting to recover. Home-grown demand remains very weak, however, and as a result we can expect manufacturing output to grow only modestly for some time."

Wall Street’s Oligopoly Exploits Its Clout

Pricing power is everything.

What businessman wouldn't like greater control and influence over the pricing of his goods and services? How are prices determined? In a capitalist system, prices are a function of the competitive forces of supply and demand. What happens when competition dwindles? Pricing power for the suppliers increases. How does competition dwindle? When barriers to entry are so high, or competitors go out of business. This economic reality is also known as an oligopoly and it defines the current state of our financial industry known as Wall Street.

Is Wall Street taking advantage of the lessened competition and flexing its muscle to drive revenue? Is the Pope Catholic?

Bloomberg takes us into the the world of derivatives trading to shed some light on Wall Street's newly defined oligopolistic (say that six times fast) nature. Bloomberg writes, Goldman Sachs Demands Collateral It Won't Dish Out:

Goldman Sachs Group Inc. and JPMorgan Chase & Co.  two of the biggest traders of over-the- counter derivatives, are exploiting their growing clout in that market to secure cheap funding in addition to billions in revenue from the business.

"If you're seen as a major player and you have a product that people can't get elsewhere, you have the negotiating power," said Richard Lindsey, a former director of market regulation at the U.S. Securities and Exchange Commission who ran the prime brokerage unit at Bear Stearns Cos. from 1999 to 2006. "Goldman and a handful of other banks are the places where people can get over-the-counter products today."

Do you think the crowds at Goldman and JP Morgan talk to each other to discuss their respective terms? Some may call that collusion. Others may think that is merely reality and "to the victors go the spoils." Either way, Goldman and JP Morgan are reaping huge benefits and revenues in the process.

How would regulators level the playing field? Transparency. Force Goldman, JP Morgan and every other Wall Street institution to trade derivatives and every other product via a system known as TRACE (a trade reporting system managed by FINRA) so that investors are fully aware of pricing and terms within these markets.

Wall Street will not easily cede that turf, will curry favor with the pols and the regulators via massive lobbying dollars and campaign contributions, and the oligopoly will become further entrenched.

Don't think for a second that Wall Street firms are not trying to flex these oligopolistic muscles in each and every sector of the market.

Do investors have any options or leverage to counter the Wall Street oligopoly? Yes. Investors can choose not to play Wall Street's game. Take your business elsewhere. Find deals and products from other financial intermediaries.

I addressed these very realities a week ago in talking about Goldman Sachs on CNBC.

Breakout Industry Group - Restaurant Stocks

Many fundamental analysts look at the economic signs and read them all as pointing to a weak and even weakening recovery. These analysts offer as evidence the standard statistics we've all become acquainted with like negative job growth, high unemployment, continued weakness in the housing market, banks that continue to hold back on lending and a waning in consumer and business confidence. Regardless of the economic news, many retailer stocks in a range of categories (for example, apparel and shoe, food, super and mini-markets, electronics) have made significant moves since January.

It's been some time since I reported on a group that pops out as a result of a dramatic increase in their Industry Group ranking: metal ores (March 22), steels (April 26), alternative energy including solar and coal (May 7), gold miners (May 11) and truck and automobile equipment manufacturers (June 1). Stocks in each of these Groups performed extremely well after they shot up in ranking (although a drop in ranking is inadequate for indicating when to sell).

The Retail-Restaurant Industry Group with 60 stocks, now appears to moved up smartly over the past several weeks from being ranked near the bottom (180th) of the 197 Industry Groups on December 14 to ranking 15th this past Friday (click on image to enlarge):

Many stocks in the Group appear to be or in the process of beginning significant bullish momentum moves out of long consolidation patterns. The Group is large, diverse and encompasses such subcategories as fast food, family and full service; some are purely domestic and others derive a significant portion of their revenues in overseas markets. The common denominator among them, however, is that many have good looking stocks charts. I could have picked many but the following will give you a clear idea of the breakout potential of stocks in the Group (click on image to enlarge):

Yum Brands

Chesapeake Utilities I

Buffalo Wild Wings

The Cheesecake Factory Incorporated

Mcdonald's

 

Brinker International

 

Darwin Professional Underwriters (NYSE:DR)

Ruby Tuesday

I could have gone on and on but you get the picture. These aren't 2-3 week trades. If the market cooperates, these and others in the group could generate some huge moves over the next 4-6 months.

A question I'm often asked is "You give us a lot to choose from but which do you think is the best?" So, coming up, answers on narrowing the field.

Time Bombs Everywhere

John Maudlin once observed that western governments and societies were behaving like teenagers:

 

In a way, we were like teenagers. We made the easy choice, not thinking of the consequences. We never absorbed the lessons of the Depression from our grandparents. We quickly forgot the sobering malaise of the '70s as the bull market of the '80s and '90s gave us the illusion of wealth and an easy future. Even the crash of Black Friday seemed a mere bump on the path to success, passing so quickly. And as interest rates came down and money became easier, our propensity to acquire things took over.

And then something really bad happened. Our homes started to rise in value and we learned through new methods of financial engineering that we could borrow against what seemed like their ever-rising value, to finance consumption today.

We became Blimpie from the Popeye cartoons of our youth: "I will gladly repay you Tuesday for a hamburger today."

 

Today, the bill is coming due. There are now time bombs in budgets everywhere. Reuters has a story out entitled Forget Greece: Italy derivatives also ticking. Local governments in Italy were eager to reduce their financing costs and did so through complex derivatives contracts. When interest rates increase, many cities will face substantial losses.

 

The cover of Barron's features a story about the $2T public pension hole. David Merkel also has a terrific post about the unfunded obligations of the US and EU governments. Mish has been railing about the ticking time bombs embedded in state and local government obligations, see one of many examples here.

Death by cancer or heart attack?

I go back to my analogy from the Star Trek episode, where Spock's line was "The guilty party has his choice– death by electrocution, death by gas, death by phaser, death by hanging…"

Governments have the choice of cancer (inflation) or heart attack (deflation). They can either spend and print money like crazy in order to put off the day of reckoning, or they can bite the bullet now by defaulting on debt, raising taxes or drastically cutting spending. We just don't know which path they will choose or whether the markets will allow them to choose.

As investors, we need to prepare and watch in order to react accordingly.

Stock Picks : General Electric, GigaMedia, Xenoport

GigaMedia  - Although some indicators are weak resulting fromMonday's retracement, the 13-day moving average suggests that this could be an excellent buying opportunity before the next big move. The bounce from 3.10 seems to be a valid buy signal.

 

General Electric  looks like it broke an ascending triangle and could go to $20. Volume confirms. Momentum indicators looking good. Buy as close to 17.10 as possible.

 

Xenoport  had a strong day on Monday after Wedbush Reiterates an 'Outperform' Rating on XenoPort. The stock was up $0.91 on the day and could make another move on Tuesday. I'm buyer of XNPT once it breaks through $9.48, which was Monday's high.

Disclaimer: Trading stocks involves risk, this information should not be viewed as trading recommendations. The charts provided here are not meant for investment purposes and only serve as technical examples.

New Loans Fall At TARP Banks

The U.S. Treasury said on Monday that new loans at nine major banks, which received significant government aid through the Troubled Asset Relief Program (TARP) during the height of the financial crisis and have not repaid yet, tumbled in Jan 2010.
 
In its monthly survey of lending on the TARP banks, the Treasury found that new loan originations at these nine banks fell about 35% from Dec 2009 to $35.9 billion in Jan 2010. The amount was even lower than $41.6 billion of loan originations in October when new loans had fallen last.
 
According to the Treasury, the drop in loan originations in January could partially be a result of large increases in originations during November and December of 2009.
 
The nine major banks that are under survey by the Treasury are: Citigroup Inc. (3.94 +0.05 +1.29%), Fifth Third Bancorp (13.36 -0.02 -0.15%), Suntrust Banks Inc. (27.08 +0.09 +0.33%), Comerica Inc. (37.56 +0.30 +0.81%), Marshall & Ilsley Corp. ( 7.95 +0.01 +0.13%), PNC Financial Services Group Inc. ( 57.46 +0.16 +0.28%), Hartford Financial Services Group Inc. ( 26.565 -0.255 -0.95%), KeyCorp ( 7.52 -0.05 -0.66%) and Regions Financial Corp. ( 7.285 +0.065 +0.90%).
 
However, the survey confirms that the average loan balances were up by 2% in January from December.
 
As a result of its ongoing bankruptcy proceedings, CIT Group Inc. (36.72 -0.09 -0.24%) did not submit January figures.
 
Most of the major institutions in the financial market like JPMorgan Chase and Co. ( 43.17 +0.10 +0.23%), Bank of America Corp. ( 16.9575 +0.1075 +0.64%), Wells Fargo & Co. ( 29.79 -0.10 -0.33%) and Goldman Sachs Inc. ( 174.43 +0.90 +0.52%) have repaid the TARP loan. Also, the Treasury has started auctioning stock warrants it acquired from the banks that received a significant portion of taxpayers' money and have fully repaid the same.
 
We think that the repayment of government money and auction of warrants can be viewed as a sign of recovery of the institutions as well as the economy. According to the Treasury, losses on TARP investments are likely to be significantly trimmed with the improvement in the overall financial condition.

Lehman Executives Bear Ultimate Responsibility For Its Collapse

The U.S. bankruptcy-court examiner investigating the collapse of Lehman Brothers Holdings Inc. issued a stinging report Friday that accused senior executives of freewheeling accounting practices that led to the largest bankruptcy in U.S. history and sparked the worst financial crisis since the Great Depression.

The 2200-page report, authored by Anton Valukas, chairman of the Chicago-based law firm Jenner & Block LLP, also excoriated Wall Street investment banks, including JPMorgan Chase & Co. ( 43.15 -0.03 -0.07%) and Citigroup Inc. ( 3.97 -0.21 -5.02%) for finally pushing Lehman over the edge by demanding more collateral and changing guarantee agreements, Bloomberg News reported.

But the report says ultimate responsibility for its collapse can be attributed to a wrong-headed business model that rewarded excessive risk and encouraged leverage - problems that were brought to a head by the investment banks and government agencies.

Lehman's bankruptcy filing on Sept. 15, 2008 - the largest Chapter 11 filing in financial history - unleashed a crisis of confidence that threw financial markets worldwide into turmoil.

The scathing report lambastes Lehman's executives, who "should have done more, done better."

Lehman "repeatedly exceeded its own internal risk limits and controls," and a series of judgment errors by its management led to the bank's demise, the report said.

Valukas blamed Lehman executives for conduct that "ranged from serious but non-culpable errors of business judgment to actionable balance sheet manipulation."  Their behavior multiplied the firm's problems, he alleged, eventually hurting its creditors and shareholders.

The report said former Chief Executive Richard Fuld was "at least grossly negligent in causing Lehman to file misleading periodic reports."

Specifically, the report alleges that when the credit squeeze caused investor confidence to falter in the fall of 2008, Lehman tried to stave off collapse by using an exotic accounting maneuver to paint a misleading picture of its financial condition.

Lehman used the accounting device, "Repo 105," to unload roughly $50 billion of toxic assets from its balance sheet at the end of the first and second quarters of 2008 instead of selling those assets at a loss, according to the report.

Accounting rules permitted Lehman to treat this transaction as sales instead of financing, "so that the assets could be removed from the balance sheet," the report said.

The examiner's report cited e-mails from Lehman's global financial controller, Martin Kelly, stating "the only purpose or motive for those transactions was reduction in the balance sheet," adding that "there was no substance to the transactions."

"In this way, unbeknownst to the investing public, rating agencies, government regulators, and Lehman's Board of Directors, Lehman reverse engineered the firm's net leverage ratio for public consumption," says the report.

The report said there was "sufficient evidence" that Fuld knew about the use of Repo 105 before signing off on quarterly financial reports that didn't mention using the accounting device.

The report also alleges that Ernst & Young, Lehman's financial auditor, didn't challenge or question the use of Repo 105.

Later, as Lehman reached the tipping point in September 2008, several factors helped to push Lehman over the brink in its final days, Valukas wrote.  Investment banks, including J.P. Morgan and Citibank, made demands for collateral and modified guarantee agreements that compromised Lehman's liquidity and pushed it into bankruptcy.

"The demands for collateral by Lehman's lenders had direct impact on Lehman's liquidity," Valukas wrote. "Lehman's available liquidity is central to the question of why Lehman failed."

Although Lehman's lenders had reasons to protect themselves as the investment bank's finances deteriorated, both JPMorgan and Citigroup may be sued to undo the guarantees they received from Lehman in the days before its bankruptcy and reverse the transfers of collateral under those agreements, the examiner said.

Additionally, the allegations of accounting manipulation and other abuses could influence pending criminal and civil investigations into Lehman's former executives. The Manhattan and Brooklyn U.S. attorney's offices are investigating whether they misled investors about the firm's finances before it filed for bankruptcy protection, and whether Lehman overvalued its real-estate assets, The Wall Street Journal reported, citing people familiar with the matter.

Both former CEO Fuld and Ernst & Young were quick to deny any culpability that might result from possible legal actions.

"Mr. Fuld did not know what these transactions were — he didn't structure or negotiate them, nor was he aware of their accounting treatment," Fuld's lawyer, Patricia Hynes of Allen & Overy LLP Hynes, said in a statement obtained by CNNMoney.com.

A spokesman for Ernst & Young said in an email obtained by Bloomberg that it conducted its last audit of Lehman for the fiscal year ended Nov. 30, 2007 more than nine months before the Chapter 11 filing.

Furthermore, "Lehman's financial statements for that year were fairly presented in accordance with generally accepted accounting principles [GAAP] and we remain of that view," Bloomberg reported.

Lehman CEO Bryan Marsal said in a separate e-mail to Bloomberg that he would "carefully evaluate" Valukas's report to assess how it might help "ongoing efforts to advance creditor interests."

Earnings Confusion

The following is fairly typical of a question I have received dozens of times over the last few years:

QUESTION: Hi Carl, I have been watching your chart showing the history of the actual S&P 500 versus the expected value based on the price to earnings ratio. It shows that the s&p 500 has never ever been so overvalued compared the normal P/E range of 10 to 20, and that earnings remain low. In 2003 the earnings started to increase before the S&P 500 started up. This makes me very wary of the run-up over the past 12 months, despite the hype on CNBC. What is your opinion on this?

ANSWER: We have to work with the most recently finalized earnings, which is Q3 2009. Because of this Q4 2008, which had a loss of -$23.25, is still used in the calculation of twelve months trailing (TMT) earnings. This distorts the P/E, currently 91. Q4 2009 will be finalized by the end of this month - 99% of S&P 500 companies have reported. At that point Q4 2008 will drop out of the equation, and earnings will be more normal again, giving us a P/E of about 22. Unfortunately, a P/E of 22 is still very overvalued and outside the normal range of 10 to 22. Here is a recent snapshot of earnings projections.

 

Here is the chart showing the historical P/E range. The recent earnings crash looks scary, but the range display should return to normal in a few weeks.

 

I am concerned about the consistent overvalue condition that has been the norm since the early 1990s, but it has persisted through two bull markets and two bear markets, demonstrating that investors just don't care about value. And the value range analysis we do, while an interesting curiosity, is not of much use for decision-making in the current environment. Follow the trend.

U.S. Stock Market Hits 17-Month High As Investors Become More Upbeat About Banks

DailyMarkets.com (New York) - The U.S. stock markets had a strong showing this week despite mixed moves on Friday. The S&P 500 index gained 1% to 1,149.99 this week, and hit a 17-month high at 1150.24 on March 11. Since its bear-market low on March 9, 2009, it has risen an impressive 70%. The Dow climbed 0.6% to 10,624.69.

Stocks managed to rise this week even after a report showed that inflation in China rose more than expected, leading investors to think that China will raise interest rates to cool the world's fastest-growing economy.

Investors felt more optimistic about the health of banks. Citigroup (3.97 -0.21 -5.02%) rallied more than 13% for the week after its CEO Vikram Pandit said the bank was moving toward "sustained profitability", and also on speculation that the U.S. government may sell its stake.

Giant insurer American International Group Inc. ( 34.23 -0.88 -2.51%) jumped 22% after selling AIA to MetLife Inc. ( 42.11 -0.21 -0.50%) for $15.5 billion.

U.S. retail sales unexpectedly increased in February. The Commerce Department said purchases at stores rose 0.3%, the fourth increase in five months. Analysts had expected sales to drop.

In forex trading, the Euro hit a one-month high against the U.S. dollar as fears that Greece would default faded. Goldman Sachs ( 174.96 +1.45 +0.84%) said investors should buy the Euro against the greenback, betting it could rise to 1.4500.

The Japanese yen declined against all major currencies on increasing risk appetite and as Japanese officials warned that the government is ready to intervene in the forex market to prevent the yen from strengthening.

In the coming week, the Federal Reserve's interest rate committee meets on Tuesday. They are expected to maintain the key interest rate at a record low of near zero, and investors will be interested in the bank's policy statement.

Stock Picks For Monday 15 March: Applied Materials, THQ, GigaMedia

 

Applied Materials ( 12.36 -0.05 -0.40%) - Above is a daily chart of the AMAT showing a breakout failure and the subsequent fall back into the base. It looks like it is gonna squeeze some shorts to me. The technical chart shows the stock is currently in the rally as %K line is rising on top of %D line, indicate buy signal. Shareholders may remain invested with a stop- loss at $12.27. Watch for the move out of either side of the triangle.

 

THQ (: 6.43 -0.09 -1.38%) - Above is a daily chart of THQI. The stock been in a healthy uptrend and recently has been trading sideways in a range. This type of pattern can be classified as an ascending triangle and usually resolves itself as a continuation pattern. Closing above 6.60 would be a step in the right direction. Some traders may wish to wait for the stock to clear the triangle, but the risk/reward ratio is better down here. I'm keeping an eye on THQI to see if the move is higher.

 

GigaMedia ( 3.22 -0.05 -1.53%) looks like it is in the process of developing a bull flag or pennant and the breakout should be a nice one if it can hold up. A bull flag breakout should take GIGM near 4.

Other stocks to watch:

List of stocks where the chart is displaying a cup and handle formation

VLO - VALERO ENERGY CORP NEW
PM - Philip Morris International
DE - DEERE & CO
ATML - Atmel Corporation
SYY - SYSCO CORP
DD - DUPONT E I DE NEMOU
CAH - CARDINAL HEALTH INC
TRV - The Travelers Co
WMB - WILLIAMS COS INC
TCK - Teck Recs B
STJ - ST JUDE MEDICAL INC
NUAN - Nuance Communications
ALL - ALLSTATE CORP
CMCSK - Comcast Corporation
RSG - REPUBLIC SERVICES INC
COV - Covidien Plc
MDR - MCDERMOTT INTL INC
AGU - AGRIUM INC
TOL - TOLL BROTHERS INC
EGLE - Eagle Bulk Shipping.
AAI - AirTran Holdings, Inc
ATI - Allegheny Technolog
CAM - Cameron Intl
DKS - DICKS SPORTING
DAN - Dana Corp
NTRS - Northern Trust Corp
CB - CHUBB CORP
GENZ - Genzyme General
KWK - Quicksilver Resources
RRC - Range Resources Corp
SNH - SENIOR HOUSING PROP
CBG - CB RICHARD ELLIS GR
MITI - MICROMET INC
EPI - WisdomTree India Ea
FOE - FERRO CORP
BBL - BHP BILLITON PLC AD
VRTX - Vertex Pharmaceutical
FAF - FIRST AMERICAN CORP
PPG - P P G INDUSTRIES INC
REG - REGENCY REALTY CORP
ASML - ASM Lithography Hol.
SHLD - KMart Corp
CCI - Crown Castle International
ICLR - ICON plc
FLS - FLOWSERVE CORP
BCR - BARD C R INC
CCK - CROWN CORK & SEAL
IRF - INTERNATIONAL RECTI
IRDM - Iridium Comm Inc
CRUS - Cirrus Logic, Inc.
RRR - RSC Holdings Inc
CP - Canadian Pacific Ra.
EV - EATON VANCE CORP
WRE - WASHINGTON R E I T
ESI - I T T EDUCATIONAL SVCS
AKR - ACADIA REALTY TRUST
IGD - ING Global Equity D
ARAY - Accuray Inc
NWBI - Northwest Bancorp
MGA - MAGNA INTL INC CL A
XRA - EXETER RESOURCE CORP
MSO - MARTHA STEWART LIVI
GDV - GABELLI DIV & INCM
NRGY - Inergy, L.P.
DCI - DONALDSON CO INC
ABD - ACCO BRANDS CORP
AEA - ADVANCE AMER CSH AD
VQ - Venoco Inc

List of stocks where the chart is displaying an ascending triangle pattern

ORCL - Oracle Corporation
IMAX - Imax Corporation
KR - KROGER CO
KFT - KRAFT FOODS INC
SAI - SAIC INC
FTO - FRONTIER OIL CORP
APA - APACHE CORP
TIBX - TIBCO Software, Inc.
CZZ - Cosan Limited
KWK - Quicksilver Resources
RRC - Range Resources Corp
MHP - MCGRAW HILL COS INC
NBL - NOBLE AFFILIATES INC
AIV - Apartment Investments
RHI - ROBERT HALF INTL INC
ENI - ENERSIS S A
OGE - O G E ENERGY CORP
MF - MF Global Hld Ltd
BCR - BARD C R INC
AGP - AMERIGROUP Corp
DBD - DIEBOLD INC
CSTR - Coinstar, Inc.
HURN - HURON CONSULTING GR.
AAV - Advantage Oil&Gs
BEAT - CardioNet Inc
MIN - M F S INTERMEDIATE
GIL - GILDAN ACTIVEWEAR INC
PIM - PUTNAM MASTER INTER
EVEP - EV Energy Partners LP
MDAS - MedAssets Inc
CR - CRANE CO

Earnings Calendar for the week Mar 15-19

Earnings Announcements for Monday

3Com Corp - COMS - 0.08 - Time Not Supplied
AAON - AAON - 0.33 - Time Not Supplied
ADVANCED BATTERY TECHNOLOG INC - ABAT - 0.1 - Time Not Supplied
AEP Industries - AEPI - 2.51 - Time Not Supplied
AgFeed Industries, Inc. - FEED - 0.07 - Time Not Supplied
AMERICAN INDEPENDENCE CORP - AMIC - 0.06 - Time Not Supplied
AMERICAN OIL & GAS INC NEW - AEZ - (-0.02) - Time Not Supplied
AMERICAN ORIENTAL BIOENGR INC - AOB - 0.16 - Before Market Open
ASPENBIO INC - APPY - (-0.1) - Time Not Supplied
Athenahealth, Inc - ATHN - 0.17 - After Market Close
BIODELIVERY SCIENCES INTL INC - BDSI - 2.21 - Time Not Supplied
Bionovo Inc. - BNVI - (-0.05) - Time Not Supplied
Biosante Pharmaceuticals, Inc. - BPAX - (-0.11) - Time Not Supplied
BMP Sunstone Corporation - BJGP - 0.01 - After Market Close
Cadence Pharmaceuticals, Inc. - CADX - (-0.3) - After Market Close
Central Vermont Public Service - CV - 0.04 - Before Market Open
Century Casinos - CNTY - (-0.01) - 10:00 am ET
Citizens First Bancorp - CTZN.PK - (-1.74) - Time Not Supplied
Cypress Bioscience - CYPB - (-0.12) - Time Not Supplied
DayStar Technologies - DSTI - (-0.17) - Time Not Supplied
Emeritus Corporation - ESC - (-0.24) - After Market Close
First Citizens Banc Corp - FCZA - 0.03 - Time Not Supplied
FLOTEK INDS INC DEL - FTK - (-0.26) - Time Not Supplied
Gainsco - GAN - 0.19 - Time Not Supplied
GASTAR EXPL LTD - GST - (-0.03) - After Market Close
GEOKINETICS INC - GOK - (-0.22) - After Market Close
GeoMet, Inc - GMET - (-0.04) - Time Not Supplied
GLOBAL SOURCES LIMITED - GSOL - 0.1 - Before Market Open
GRAMERCY CAP CORP - GKK - (-2.78) - Before Market Open
Gray Television, Inc. - GTN - (-0.22) - Time Not Supplied
GTx, Inc. - GTXI - (-0.35) - Before Market Open
HOUSTON AMERN ENERGY CORP - HUSA - 0.01 - Time Not Supplied
Houston Wire & Cable Company - HWCC - 0.11 - Time Not Supplied
HQ SUSTAINABLE MARITIME IND INC - HQS - 0.31 - After Market Close
Jinpan - JST - 0.32 - Before Market Open
Keryx Biopharmaceuticals, Inc. - KERX - (-0.06) - Time Not Supplied
KOHLBERG CAPITAL CORP - KCAP - 0.23 - Time Not Supplied
LADENBURG THALMAN FIN SVCS INC - LTS - (-0.02) - Time Not Supplied
LookSmart Ltd. - LOOK - (-0.05) - Time Not Supplied
MAGNUM HUNTER RES CORP DEL - MHR - (-0.03) - Time Not Supplied
Medivation, Inc. - MDVN - (-0.59) - Time Not Supplied
MEMSIC INC - MEMS - (-0.05) - After Market Close
Michael Baker Corp. - BKR - 0.68 - Time Not Supplied
MiddleBrook Pharmaceuticals, Inc. - MBRK - (-0.16) - Time Not Supplied
Old Second Bancorp - OSBC - (-0.19) - Time Not Supplied
OMEROS CORP - OMER - (-0.27) - Time Not Supplied
ORBCOMM INC - ORBC - (-0.19) - Time Not Supplied
Ore Pharmaceuticals Inc. - ORXE - (-0.2) - Time Not Supplied
Oxygen Biotherapeutics, Inc. - OXBT - (-0.12) - Time Not Supplied
Pharmathene - PIP - (-0.21) - Time Not Supplied
Plug Power - PLUG - (-0.08) - Time Not Supplied
PrimeEnergy Corporation - PNRG - (-0.25) - Time Not Supplied
Progenics Pharmaceuticals - PGNX - (-0.15) - Time Not Supplied
RADNET INC - RDNT - 0.02 - Time Not Supplied
RASER TECHNOLOGIES INC - RZ - (-0.11) - Time Not Supplied
REXAHN PHARMACEUTICALS INC - RNN - (-0.03) - Time Not Supplied
Schawk - SGK - 0.22 - Before Market Open
SCOLR PHARMA INC - DDD - (-0.04) - Time Not Supplied
SEASPAN CORPORATION - SSW - 0.26 - After Market Close
Sequenom - SQNM - (-0.25) - After Market Close
SINOHUB INC - SIHI - 0.14 - Time Not Supplied
Sterling Construction Company, Inc. - STRL - 0.23 - Before Market Open
STONEMOR PARTNERS LP - STON - (-0.04) - Time Not Supplied
Sucampo Pharmaceuticals, Inc - SCMP - 0.02 - After Market Close
Supertel Hospitality Inc. - SPPR - 0.06 - Time Not Supplied
TENGASCO INC - TGC - 0.01 - Time Not Supplied
THE9 LTD - NCTY - (-0.53) - Time Not Supplied
Toreador Resources - TRGL - (-0.02) - Before Market Open
Trubion Pharmaceuticals, Inc - TRBN - (-0.19) - After Market Close
United Western Bancorp - UWBK - (-0.09) - After Market Close
Universal Display - PANL - (-0.14) - After Market Close
Warwick Valley Telephone - WWVY - 0.28 - Time Not Supplied
Williams-Sonoma - WSM - 0.73 - After Market Close
ZAGG INCORPORATED - ZAGG - 0.04 - After Market Close
Zoom Technologies Inc. - ZOOM - 0.2 - Time Not Supplied

Earnings Announcements for Tuesday

AAR Corp. - AIR - 0.35 - After Market Close
Akorn, Inc. - AKRX - (-0.02) - Before Market Open
Ambac Financial Group - ABK - (-3.34) - After Market Close
ARIAD Pharmaceuticals, Inc. - ARIA - (-0.17) - Before Market Open
AVI BioPharma - AVII - (-0.05) - Before Market Open
Chemspec International Limited - CPC - 0.14 - Time Not Supplied
CHINA FINANCE ONLINE CO - JRJC - (-0.07) - After Market Close
CHINA FIRE & SEC GROUP INC - CFSG - 0.12 - Before Market Open
CHINA HOUSING & LAND DEV INC - CHLN - 0.07 - Time Not Supplied
China Nuokang - NKBP - 0.16 - After Market Close
CHINACAST EDU CORP - CAST - 0.11 - Time Not Supplied
Cloud Peak Energy Inc. - CLD - 0.49 - After Market Close
Discover Financial Services - DFS - 0.09 - After Market Close
DXP Enterprises - DXPE - 0.19 - Time Not Supplied
Electro-Optical Sciences, Inc - MELA - (-0.24) - Time Not Supplied
Emdeon Inc. - EM - 0.19 - After Market Close
Focus Media Holding Ltd. - FMCN - 0.21 - After Market Close
GENERAL STEEL HOLDINGS INC - GSI - (-0.02) - Before Market Open
MDS Inc. - MDZ - (-0.01) - Before Market Open
MERCANTILE BANCORP INC ILL - MBR - (-0.11) - Time Not Supplied
Molecular Insight Pharmaceuticals, Inc - MIPI - (-0.77) - Time Not Supplied
NASB Financial, Inc. - NASB - 0.41 - Time Not Supplied
OUTDOOR CHANNEL HLDGS INC - OUTD - 0.08 - Time Not Supplied
Overstock.com Inc - OSTK - 0.45 - Time Not Supplied
Repros Therapeutics, Inc. - RPRX - (-0.32) - Time Not Supplied
RUE21 INC - RUE - 0.3 - Time Not Supplied
ShengdaTech Inc. - SDTH - 0.09 - Time Not Supplied
TBS International Plc - TBSI - (-0.34) - Before Market Open
Town Sports International Holdings, Inc. - CLUB - (-0.1) - Time Not Supplied

Earnings Announcements for Wednesday

Abraxas Petroleum - AXAS - (-0.01) - After Market Close
Actuant Corporation - ATU - 0.16 - Before Market Open
Aeterna Zentaris Inc. - AEZS - (-0.18) - Time Not Supplied
CHINA SKY ONE MEDICAL, INC. - CSKI - 0.57 - Time Not Supplied
CLARCOR Inc. - CLC - 0.31 - After Market Close
Connecticut Water Service - CTWS - 0.16 - Time Not Supplied
Consolidated Water - CWCO - 0.15 - Time Not Supplied
Crimson Exploration, Inc. - CXPO - (-0.28) - Before Market Open
DANAOS CORP - DAC - 0.26 - Time Not Supplied
Dara Biosciences - DARA - (-0.02) - Time Not Supplied
EUROBANCSHARES INC - EUBK - (-0.65) - Time Not Supplied
Federal Agricultural Mortgage Corporation - AGM - 0.93 - Time Not Supplied
Guess - GES - 0.81 - After Market Close
Herman Miller - MLHR - 0.18 - After Market Close
IHS Inc. - IHS - 0.62 - After Market Close
Interstate Hotels & Resorts, Inc. - IHR - (-0.06) - Time Not Supplied
Portec Rail Products Inc. - PRPX - 0.06 - Time Not Supplied
Schiff Nutrition International, Inc. - WNI - 0.14 - Time Not Supplied
Somanetics Corporation - SMTS - 0.07 - Time Not Supplied
STR Holdings, Inc. - STRI - 0.22 - After Market Close
Tootsie Roll - TR - 0.18 - Time Not Supplied
Towerstream Corporation - TWER - (-0.06) - After Market Close
Tsakos Energy Navigation Limited - TNP - (-0.04) - Time Not Supplied
VAALCO ENERGY INC - EGY - 0.1 - Time Not Supplied
WPCS International Inc - WPCS - 0.06 - After Market Close
ZST DIGITAL NETWORKS INC - ZSTN - 0.29 - Time Not Supplied

Earnings Announcements for Thursday

ADDUS HOMECARE CORP - ADUS - 0.2 - After Market Close
AURIZON MINES LTD - AZK - 0.02 - Time Not Supplied
BioLase Technology - BLTI - 0.10 - 6:00 am ET
Casual Male Retail Group, Inc. - CMRG - 0.05 - Before Market Open
Charles River Associates - CRAI - 0.27 - Time Not Supplied
Cintas Corporation - CTAS - 0.3 - After Market Close
Concord Medical Services Holdings Limited - CCM - 0.14 - Before Market Open
DIGITAL ALLY INC - DGLY - 0.06 - Time Not Supplied
FedEx - FDX - 0.72 - Time Not Supplied
Gamestop Corp. - GME - 1.28 - Before Market Open
ICOP DIGITAL INC - ICOP - (-0.09) - Time Not Supplied
ICX TECHNOLOGIES INC - ICXT - (-0.03) - After Market Close
K-Tron - KTII - 1.46 - Time Not Supplied
KID BRANDS, INC - KID - 0.15 - Time Not Supplied
New York & Company Inc. - NWY - 0.06 - Before Market Open
Oncothyreon Inc. - ONTY - (-0.13) - Time Not Supplied
Palm, Inc. - PALM - (-0.42) - After Market Close
Quigley - QGLY - (-0.01) - Time Not Supplied
Ross Stores, Inc. - ROST - 1.16 - 08:30 am ET
Shoe Carnival - SCVL - 0.12 - Before Market Open
SouthWest Water - SWWC - 0.05 - Time Not Supplied
Stein Mart, Inc. - SMRT - 0.17 - Before Market Open
SunPower Corporation - SPWRA - 0.49 - Time Not Supplied
The Cato Corporation - CATO - 0.22 - Before Market Open
The Marcus Corporation - MCS - 0.05 - Time Not Supplied
Vimpel Communications - VIP - 0.41 - Time Not Supplied
Winnebago - WGO - (-0.09) - 07:00 am ET
WIRELESS RONIN TECHNOLOGIES INC - RNIN - (-0.1) - Time Not Supplied

Earnings Announcements for Friday

Eldorado Gold Corporation - EGO - 0.09 - Before Market Open
NeurogesX, Inc. - NGSX - (-0.34) - Time Not Supplied
Perry Ellis Internationa - lPERY - 0.59 - Before Market Open
Star Scientific, Inc. - CIGX - (-0.03) - Time Not Supplied

Weekly Review Of The Dow, Shanghai Stock Exchange And Hang Seng

Dow Jones Index

For this week's stock index move, Dow Jones broke 10440 and advanced on high volume. This increased volume signifies strength  in the advance. The index should pull back on immediate resistance of 10730 for a breather. This leg of recovery is a continued inbound trend from 9954.

 

Shanghai Stock Index

Shanghai index has a very interesting formation. On the day chart, it seems to be forming a small cup and handle. A break above the 3100 would be breakout from cup and handle. On the weekly chart, a major symmetrical triangle is forming. The end result depends on the breakout direction from the symmetrical triangle.

 

Hang Seng

Hang Seng Index is on uptrend channel as indicated. Watch out for resistance around 22000 to 22164 region.