The S&P 500 this week suffered its biggest drop in two months as investors fretted about the strength of the economy as earnings season approaches.
The S&P 500 fell 1.2% to2,047.60 this week–its worst decline since the week ending Fe. 5–after rising 0.3% today. The Dow Jones Industrial Average dropped 1.2% to17,576.96 this week after advancing 35 points, or 0.2%, today. The Nasdaq Composite declined 1.3% to 4,850.69 this week after finishing little changed today.
Gluskin Sheff’s David Rosenberg worries that the market is headed for another correction:
It looks very likely that we are entering into another corrective phase for the equity markets. The bounce off the February 11th low has played out and the various factors that propelled risk appetite at the time are now fully priced in and then some.
Top 10 Gas Utility Companies To Invest In Right Now: CA Inc.(CA)
CA Technologies, together with its subsidiaries, designs, develops, markets, delivers, licenses, and supports information technology (IT) management software products that operate on a range of hardware platforms and operating systems. It offers enterprise IT management software for organizations that addresses components of the computing environment, including people, information, processes, systems, networks, applications, and databases. The company provides a portfolio of mainframe and distributed software products with a focus on mainframe, service assurance, security (identity and access management), project and portfolio management, service management, virtualization and service automation, and cloud computing. It serves banks, insurance companies, other financial services providers, government agencies, manufacturers, technology companies, retailers, educational organizations, and health care institutions worldwide. CA Technologies offers its solutions through its d irect sales force and indirectly through global systems integrators, technology partners, managed service providers, solution providers, distributors and volume partners, and exclusive representatives. The company was formerly known as CA, Inc. and changed its name to CA Technologies in May 2010. CA Technologies was founded in 1974 and is based in Islandia, New York.
- [By Jonas Elmerraji]
The chart of CA (CA) doesn’t need much introduction — it’s about as simple as a technical pattern gets. CA is currently bouncing higher in an uptrending channel, a setup that gives us a very high probability range for shares of CA to remain within. Here’s how to trade it.
Trendline support is the price level to watch right now in CA — it’s been the floor that’s kept CA bouncing higher each of the last five times it’s been tested. Even though it generally makes sense to be a buyer anywhere in an uptrend, the ideal time to buy comes on a bounce off of support.
Buying off a support bounce makes sense for two big reasons: It’s the spot where shares have the furthest to move up before they hit resistance, and it’s the spot where the risk is the least (because shares have the least room to move lower before you know you’re wrong). With little room between the trendline support line and CA’s most recent price, this week looks like as good a time as any to start building a position.
Top 10 Gas Utility Companies To Invest In Right Now: BioCryst Pharmaceuticals Inc.(BCRX)
BioCryst Pharmaceuticals, Inc., a biotechnology company, designs, optimizes, and develops small-molecule pharmaceuticals that block key enzymes involved in infectious diseases, cancer, and inflammatory diseases. It uses structure-based drug design, which incorporates multiple scientific disciplines, including biology, crystallography, medicinal chemistry, and computer to develop new therapeutic candidates. The company has three novel late-stage compounds in development, which include Peramivir, a neuraminidase inhibitor for the potential treatment of influenza; BCX4208, a purine nucleoside phosphorylase (PNP) inhibitor for gout; and Forodesine, a PNP inhibitor for cutaneous T-cell lymphoma (CTCL) and chronic lymphocytic leukemia (CLL). Peramivir is being developed under a contract from the Biomedical Advanced Research and Development Authority within the United States Department of Health and Human Services. Forodesine has been granted orphan drug status by the FDA for thr ee indications, which include T-cell non-Hodgkin?s lymphoma, including CTCL; CLL and related leukemias, including T-cell prolymphocytic leukemia, adult T-cell leukemia, and hairy cell leukemia; and for treatment of B-ALL. The FDA has also granted fast track status to the development of forodesine for the treatment of relapsed or refractory T-cell leukemia, and special protocol assessment from the FDA for forodesine to conduct a pivotal clinical trial in CTCL with an oral formulation. The company announced the initiation of a Phase 2b study of BCX4208 as add-on therapy in gout patients who have not responded to allopurinol therapy alone. BioCryst Pharmaceuticals utilizes crystallography and structure-based drug design to discover additional compounds and to progress others through pre-clinical and early development to address the unmet medical needs of patients and physicians. The company was founded in 1986 and is headquartered in Durham, North Carolina.
Intrexon Corporation, a biotechnology company, operates in the synthetic biology field in the United States. The company, through a suite of proprietary and complementary technologies, designs, builds, and regulates gene programs, which are DNA sequences that consist of key genetic components. Its technologies include UltraVector gene design and fabrication platform, and its associated library of modular DNA components; cell systems informatics; RheoSwitch inducible gene switch; AttSite Recombinases; protein engineering; mAbLogix; and laser-enabled analysis and processing. Intrexon Corporation has collaboration agreements with ZIOPHARM Oncology, Inc.; Synthetic Biologics, Inc.; Oragenics, Inc.; Fibrocell Science, Inc.; Genopaver, LLC; AquaBounty Technologies, Inc.; S & I Ophthalmic, LLC; Biological & Popular Culture, Inc.; OvaXon, LLC; Intrexon Energy Partners, LLC; Persea Bio, LLC; Janssen Pharmaceutica NV; and strategic coll aboration and licensing agreement with Merck Serono S.A. The company was formerly known as Genomatix Ltd. and changed its name to Intrexon Corporation in 2005. Intrexon Corporation was founded in 1998 and is based in Germantown, Maryland.
- [By Ben Levisohn]
Overvalued companies include MWI Veterinary (MWIV) andStericycle (SRCL), while companies with attractive valuations include Cardinal Health (CAH), Selected Medical (SEM). He’s not a fan of Intrexon (XON) but callsAratana (PETX) a “hidden gem.”
Top 10 Gas Utility Companies To Invest In Right Now: Transcananda Pipelines Ltd.(TRP)
Transcanada Corporation operates as an energy infrastructure company in North America. The company operates in three segments: Natural Gas Pipelines, Oil Pipelines, and Energy. The Natural Gas Pipelines segment develops and operates energy infrastructure, including natural gas pipelines and regulated gas storage facilities. Its network of natural gas pipelines extends approximately 60,000 km tapping into gas supply basins in North America. The Oil Pipelines segment operates Keystone crude oil pipeline system, which includes completed 3,467 km Wood River/Patoka and Cushing Extension phases, and the proposed 2,673 km U.S. Gulf Coast Expansion. The Energy segment engages in the acquisition, development, construction, ownership, and operation of electrical power generation plants; the purchase and marketing of electricity; the provision of electricity account services to energy and industrial customers; and the development, construction, ownership, and operation of non-regulat ed natural gas storage in Alberta. The company was founded in 1951 and is headquartered in Calgary, Canada.
- [By Chad Tracy]
The most obvious is TransCanada (NYSE: TRP), the company that has submitted the proposal for the expansion.
TransCanada's cash flow is derived from natural gas (62%), oil/liquids (16%), and energy (22%), which includes natural gas storage.
Top 10 Gas Utility Companies To Invest In Right Now: Frontier Communications Corporation(FTR)
Frontier Communications Corporation, a communications company, provides regulated and unregulated voice, data, and video services to residential, business, and wholesale customers in the United States. The company offers residential services, such as fiber-to-the-home and fiber-to-the-node broadband, video, and voice over Internet protocol products, as well as traditional copper-based broadband products; and commercial services, including Ethernet, dedicated Internet, multiprotocol label switching, time division multiplexing, data transport services, and optical transport services. It also provides Frontier Secure suite of products for computer security, cloud backup and sharing, identity protection, equipment insurance, and technical support; unified messaging services comprising call forwarding, conference calling, caller identification, voicemail, and call waiting services; long distance network services; and packages of co mmunications services. In addition, the company offers switched access services that facilitate other carriers to use the companys facilities to originate and terminate their local and long distance voice traffic; satellite TV video services; a range of third-party communications equipment to small, medium, and enterprise business customers; and directories. As of December 31, 2014, it had approximately 3,214,800 residential customers; approximately 304,700 business customers; 2,373,900 broadband subscribers; and 586,600 video subscribers. The company was formerly known as Citizens Communications Company and changed its name to Frontier Communications Corporation in July 2008. Frontier Communications Corporation was founded in 1927 and is based in Norwalk, Connecticut.
- [By WilliamBriat]
Frontier Communications Corporation (NASDAQ: FTR) provides phone, Internet, and satellite TV (through a partnership with DISH Network) services to more than 25 states. The company provides an annual dividend of 9.3% and reaffirmed its full-year guidance.
Top 10 Gas Utility Companies To Invest In Right Now: Oaktree Capital Group, LLC(OAK)
Oaktree Capital Group, LLC operates as a global investment management firm that focuses on alternative markets. It manage investments in a number of strategies within six asset classes, including distressed debt; corporate debt, including high yield debt and senior loans; control investing; convertible securities; real estate; and listed equities. The company pursues these strategies through closed-end, open-end, and evergreen funds. Oaktree Capital Group, LLC was founded in 1995 and is headquartered in Los Angeles, California.
- [By Igor Greenwald, Financial Columnist, The Energy Strategist]
Oaktree Capital Group (OAK) raises most of the funds it invests in companies, credit, and real estate from institutional investorsincluding public pension fundsand charges them hedge-like fees for the privilege.
Top 10 Gas Utility Companies To Invest In Right Now: Credit Suisse Group(CS)
Credit Suisse Group AG, together with its subsidiaries, operates as a financial services company. The company operates in three segments: Private Banking, Investment Banking, and Asset Management. The Private Banking segment offers advisory services and a range of wealth management solutions, including pension planning, life insurance products, tax planning, and wealth and inheritance advice for the high-net-worth and ultra-high-net-worth individuals. This segment also supplies banking products and services to affluent, high-net-worth and ultra-high-net-worth clients, and corporates and institutions. The Investment Banking segment provides investment banking and securities products and services to corporations, governments, pension funds, and institutions. Its products and services include debt and equity underwriting, sales and trading, mergers and acquisitions advice, divestitures, corporate sales, restructuring, and investment research. The Asset Management segment offe rs integrated investment solutions and services to institutions, governments, foundations and endowments, corporations, and individuals. It provides access to a range of investment classes across alternative investment, asset allocation, and traditional investment strategies. The company operates in Switzerland, Europe, the Middle East, Africa, the Americas, and the Asia Pacific. Credit Suisse Group AG was founded in 1856 and is headquartered in Zurich, Switzerland.
- [By Wayne Duggan] Related DB Deutsche Bank In The Tank Mike Khouw Sees Unusual Options Activity In Deutsche Bank 33 Large Banks On The Federal Reserve's Radar In 2016 (Seeking Alpha) Related CS Earnings Scheduled For February 4, 2016 Blockchain Moves Forward In The Financial Industry Credit Suisse Group AG (CS) Tidjane Thiam on Q4 2015 Results – Earnings Call Transcript (Seeking Alpha)
The latest credit default swap (CDS) data from BMO Capital Markets indicate a number of investors are growing increasingly concerned about the one-year outlook for capital markets. In a new report, analyst Mark Steele discussed the recent surge in one-year CDS activity, and what it means for the market.
- [By Paul R. La Monica]
European banks worse off than 2008? Lamensdorf is concerned about the exposure to bad loans (especially energy company debt) held by big banks such as Royal Bank of Scotland (RBS), Credit Suisse (CS) and Deutsche Bank (DB). He’s shorting all three.
Top 10 Gas Utility Companies To Invest In Right Now: Williams-Sonoma Inc.(WSM)
Williams-Sonoma, Inc. operates as a specialty retailer of home products. It offers culinary and serving equipment, including cookware, cookbooks, cutlery, informal dinnerware, glassware, table linens, specialty foods, and cooking ingredients; and bridal and gift items under the Williams-Sonoma brand name. The company also provides home furnishing categories, including furniture, textiles, decorative accessories, lighting, and tabletop items under the West Elm brand name; bed and bath products under the Pottery Barn brand name; and children?s furnishings and accessories under the Pottery Barn Kids brand name. Williams-Sonoma, Inc. sells its home products through four retail store concepts, which include Williams-Sonoma, Pottery Barn, Pottery Barn Kids, and West Elm; six direct-mail catalogs that comprise Williams-Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Bed and Bath, PBteen, and West Elm; and six e-commerce Websites, which consist of williams-sonoma.com, potte rybarn.com, potterybarnkids.com, pbteen.com, westelm.com, and wshome.com. As of January 30, 2011, it operated 592 stores, including 260 Williams-Sonoma, 193 Pottery Barn, 85 Pottery Barn Kids, 36 West Elm, and 18 outlet stores located in 44 states of the United States; Washington, D.C.; Canada; and Puerto Rico. The company was founded in 1956 and is headquartered in San Francisco, California.
- [By Monica Gerson]
Wall Street expects Williams-Sonoma, Inc. (NYSE: WSM) to post its quarterly earnings at $1.58 per share on revenue of $1.62 billion. Williams-Sonoma shares declined 0.14 percent to $58.13 in after-hours trading.
- [By Monica Gerson]
Williams-Sonoma, Inc. (NYSE: WSM) is projected to post its quarterly earnings at $1.58 per share on revenue of $1.62 billion.
CLARCOR Inc. (NYSE: CLC) is estimated to post its quarterly earnings at $0.40 per share on revenue of $310.87 million.
Top 10 Gas Utility Companies To Invest In Right Now: Wendy’s/Arby’s Group Inc.(WEN)
The Wendy’s Company operates as a quick-service hamburger company in the United States. The company, through its subsidiary, Wendy’s International, Inc., operates as a franchisor of the Wendy’s restaurant system. As of December 26, 2011, the Wendy’s system comprised approximately 6,500 franchise and company restaurants in the United States and the United States territories, as well as in 26 other countries worldwide. The company was formerly known as Wendy’s/Arby’s Group, Inc. and changed its name to The Wendy’s Company in July 2011. The Wendy’s Company was founded in 1884 and is headquartered in Dublin, Ohio.
- [By Jim Jubak, Senior Markets Editor, MoneyShow.com]
It’s hard for any company to raise prices in the current non-inflationary environment. But it’s especially hard right now for operators of fast food restaurants, given the intense price competition in a very crowded marketplace. McDonald’s sales growth in recent quarters has been driven by the success of its Dollar Menu, so raising prices in that segment are a big deal for the company. In addition, pushback from franchisees who say they can’t afford to refurbish their stores, given higher charges from McDonald’s hits at one of McDonald’s key advantages in its market—it’s ability to refresh stores more frequently than competitors. A McDonald’s refresh at $600,000 on average, according to the company, costs substantially more than a remodel at Burger King (BKW) at $300,000 or Wendy’s (WEN) at $375,000 for the least expensive version. McDonald’s restaurants average $2.5 million in annual sales.
- [By Michael Flannelly]
Argus Research upgraded fast food restaurant operator The Wendy’s Co (WEN) on Thursday, noting that the company’s store remodeling and new menus should help drive higher sales.
The analysts upgraded WEN from “Hold” to “Buy” and see shares reaching $10. This price target suggests a 21% upside to the stock’s Wednesday closing price of $8.25.
Wendy’s shares were up 24 cents, or 2.91%, during early morning trading on Thursday. The stock is up 54.19% year-to-date.
Top 10 Gas Utility Companies To Invest In Right Now: Nu Skin Enterprises Inc.(NUS)
Nu Skin Enterprises, Inc. develops and distributes anti-aging personal care products and nutritional supplements worldwide. The company sells its personal care products under the Nu Skin brand; and nutritional supplements under the Pharmanex brand. Its personal care product line includes core systems, targeted treatments, total care, cosmetic, and Epoch, a product formulated with botanical ingredients. The company?s nutritional supplements product line comprises micronutrient supplements, targeted solution supplements, and weight management products. It also sells Vitameal, which are nutritious meal products for starving children or purchased for personal food storage. In addition, the company offers other products and services consisting of digital content storage, water purifiers, and other household products. It sells its products primarily through a network of independent distributors in north Asia, the Americas, Greater China, Europe, and the south Asia/Pacific. The c ompany also operates retail stores to sell its products in China. As of December 31, 2010, Nu Skin Enterprises operated 40 stores throughout China. The company was founded in 1984 and is headquartered in Provo, Utah.
- [By Ben Levisohn]
Citigroup’s Beth Kite calls Nu Skin Enterprises’ (NUS) earnings and guidance “awfully disappointing.” She explains why:
“Frustrating” Describes 4Q15 & 2016 Guidance:Nu Skin (i) reported 4Q15 EPS of $0.62, 11 cents below consensus and us, and (ii) lowered 2016 EPS guidance, from $3.25-$3.40 to $2.40-$2.60.Nu Skin had three LTO’s in 4Q152 succeeded and 1 failed. The failure had far less to do with the product than with the sales strategy…
Is Guidance Too Conservative or Is It Really This Bad? We get that Me failed to sell well in South Korea with the 12-month cartridge commitment. But given the strength in reps globally, the strength of Youth from its two LTOs in 2H15, and good results from Me when sold in Japan without the 12-month commitment, we wonder if guidance is aggressive to the downside. Indeed, the word “conservative” was said a lot by mgmt on the brief earnings call when describing guidance revisions.
Maintaining Buy: While we now have less confidence in mgmt, from an external perspective, to forecast its results accurately, and from an internal perspective, to course correct quicklyi.e., why didn’t they drop the 12-month plan for Me in South Korea when it so obviously wasn’t workingwe are still confident in Youth & Me. The rep growth in South Asia/Pacific from Youth in 3Q led to better 4Q sales than we’d expected, Youth’s Americas LTO in 4Q drove lc sales up 26% YoY, and Me not only sold through in Japan in 4Q but also drove reps higher. We imagine that investors may have little patience or confidence in Nu Skin for a while, understandably. But the bar seems set fairly low now, so we are cautiously optimistic that Nu Skin can dig itself out of this hole as we go through 2016 and Me & Youth roll out more fully.
Shares of Nu Skin have tumbled 13% to $27.31 at 2:11 p.m. today.