Stocks finished in the red today, as the market apparently decided it need to take a breather.
Eric Thayer/Bloomberg News
The S&P 500 fell 0.4% to 2,165.17 today, while the Dow Jones Industrial Average dropped 77.80 points, or 0.4%, to 18,517.23. The Nasdaq Composite declined 0.3% to 5,073.90. The Dow’s drop ended its nine-day streak of new highs.
So is this the beginning of the end? It doesn’t look that way. The U.S. economy, for instance, appears to be muddling through, explains Strategas Research Partners’ Don Rissmiller and Erica Halie Comp:
The Philly Fed index fell to -2.9 in July, though the components of this report were stronger than the headline. New orders rose to 11.8 after being negative in June, and shipments moved up to 6.3. Our Strategas Leading Indicator of Mfg (SLIM) also showed continued moderate growth in July. U.S. jobless claims also remained very low this week, falling -1,000 to 253,000 (the U.S. economy looks to be at full employment). Mtg applications for purchase did fall -2.1% w/w this week, but remain in an uptrend. U.S. housing starts rose +4.8% m/m in June, with single-family permits up +1.0%. Existing home sales ticked higher to a 5.6 million SAAR. In general, housing continues to recover, which indicates the U.S. muddle thru is continuing (despite risk from abroad, eg, the plunge in Germanys ZEW survey this week). Also worth noting, the U.S. leading indicator (LEI) rose +0.3% m/m in June, ie, no problem here.
Best Cheapest Companies To Invest In 2016: PacWest Bancorp(PACW)
PacWest Bancorp, incorporated on March 24, 2008, is a bank holding company for Pacific Western Bank (the Bank). The Company is focused on relationship-based business banking to small, middle-market and venture-backed businesses. The Bank offers a range of loan and deposit products and services through approximately 80 branches located throughout the state of California. The Company provides commercial banking services, and deposit and treasury management services to small and middle-market businesses. It offers products and services under the brand names of Pacific Western, as well as its business groups, CapitalSource Inc. and Square 1 Bank. CapitalSource focuses on providing cash flow, asset-based, equipment and real estate loans and treasury management services to middle market businesses. Square 1 Bank focuses on providing a range of financial products to service entrepreneurial businesses and their venture capital and private equity investors. Square 1 Asset Managemen t, Inc., a subsidiary of the Bank, provides investment advisory and asset management services.
The Company conducts a range of commercial lending activities that includes real estate mortgage, real estate construction and land loans, and commercial and industrial (C&I) loans and leases. Its commercial real estate loans are secured by a range of property types. Its C&I loan offerings are diverse and include various asset-secured loans, equipment-secured loans and leases, cash flow loans (leveraged loans) to finance business acquisitions and recapitalizations, and venture loans to support the operations of entrepreneurial companies during the various phases of their start-up operations. Its C&I loans include cash flow loans, asset-based loans, equipment-secured loans and leases, and venture capital loans. Its real estate lending activities focuses on loans to professional developers and real estate investors for the acquisition, ref inancing and construction of commercial real estate. Its con! sumer loans include personal loans, auto loans, home equity lines of credit, revolving lines of credit, other loans made by banks to individual borrowers, and purchased participation interests in student loans originated and serviced by a third-party lender. The Company’s total loans are approximately $14.48 billion.
The Company’s investment securities are classified as securities available-for-sale. The Company’s investment portfolio consists of obligations of states and political subdivisions (municipal securities), the United States Government agency obligations, and government-sponsored enterprise (GSE) obligations. The Company owns approximately $3.6 billion of investment securities available-for-sale.
Sources of Funds
The Company’s main source of funds to support its revenue-generating assets and to provide a source of low-cost funds and deposit-related fee income are deposits. The Company offers deposit products to businesses and other customers with a range of rates and terms, including demand, money market and time deposits. It also provides international banking services, multi-state deposit services, asset management services, as well as product offerings through other correspondent banks. The Company’s total deposits consist of approximately $10.6 billion in core deposits, approximately $4.2 billion in time deposits and over $0.9 billion in brokered non-maturity deposits. The Company borrows funds on a long-term, short-term or overnight basis from the Federal Home Loan Banks (FHLB), the Federal Reserve Bank of San Francisco (FRBSF) or other financial institutions.
- [By Ben Levisohn]
The twenty stocks in Worth’s basket are: Ameriprise Financial (AMP) Bank of America, Banner (BANR), Citigroup, Citizens Financial Group (CFG), East West Bancorp (EWBC), First NBC Bank Holding (FNBC), HFF (HF), KeyCorp(KEY), Legacy Texas Financial Group (LTXB), Lincoln National (LNC), Morgan Stanley, Old National Bancorp (ONB), PacWest Bancorp (PACW), PNC Financial Services Group (PNC), Principal Financial Group (PFG), Stifel Financial (SF), SVB Financial Group (SIVB), TCF Financial (TCB), and Wells Fargo.
Best Cheapest Companies To Invest In 2016: World Energy Solutions Inc(DE)
World Energy Solutions, Inc. provides a range of energy management solutions to commercial and industrial businesses, institutions, utilities, and governments. It offers technology-enabled solutions, such as online audits of facilities to identify retrofit options and project management services for retrofit implementation, as well as cross-selling opportunities for commodity auctions. The company primarily focuses on retail and wholesale energy procurement clients via its online auction platforms, including the World Energy Exchange, the World Green Exchange, and the World DR Exchange. The World Energy Exchange enables energy consumers in North America to negotiate for the purchase or sale of electricity, natural gas, and other energy resources from energy suppliers who have agreed to participate on auction platform. The World Green Exchange enables buyers and sellers to negotiate for the purchase or sale of environmental commodities, such as renewable energy certificates , verified emissions reductions, and certified emissions reductions. The World DR Exchange enables curtailment service providers and energy consumers to negotiate in structured auction events designed to yield price transparency. The company was formerly known as World Energy Exchange, Inc. World Energy Solutions, Inc. was founded in 1996 and is headquartered in Worcester, Massachusetts.
- [By Lee Jackson]
Deere & Co. (NYSE: DE) was started as Underweight with a $72 price target (versus $84.48 close) by Morgan Stanley.
Dollar General Corp. (NYSE: DG) was raised to Buy with a $66 price target at Sterne Agee.
- [By Lisa Levin]
Deere & Company (NYSE: DE) reported upbeat earnings for its fourth quarter, but the company lowered its fiscal-year guidance.
Deere said that it earned $0.80 per share in the first quarter on revenue of $5.525 billion. Wall Street analysts were expecting the company to earn $0.70 per share on revenue of $4.94 billion.
Top 5 Heal Care Stocks To Invest In Right Now: Fortinet, Inc.(FTNT)
Fortinet, Inc. provides cyber security solutions for enterprises, service providers, and government organizations worldwide. The company offers FortiGate physical and virtual appliances products that provide various security and networking functions, including firewall, intrusion prevention, anti-malware, virtual private network, application control, Web filtering, anti-spam, and wide area network acceleration; FortiManager product family to provide a central management solution for FortiGate products comprising software updates, configuration, policy settings, and security updates; and the FortiAnalyzer product family, which provides a single point of network log data collection. It also offers FortiAP secure wireless access points; FortiWeb, a Web application firewall; FortiMail email security; FortiDB database security appliances; FortiClient, an endpoint security software; and FortiSwitch secure switch connectivity product s. In addition, the company provides FortiSandbox advanced threat protection solutions; and FortiDDos and FortiDB database security appliances. Further, it offers security subscription, technical support, training, and professional services. The company was founded in 2000 and is headquartered in Sunnyvale, California.
- [By Lee Jackson]
Deutsche Bank also listed Expedia Inc. (NASDAQ: EXPE), Fortinet Inc. (NASDAQ: FTNT) and Informatica Corp. (NASDAQ: INFA) as the three most controversial stocks. These three literally generated the most hallway, and probably bar-stool, debates at the conference.