Stocks finished the week mixed despite volatility surrounding the release of the hawkish minutes from the FOMC’s April meeting.
Spencer Platt/Getty Images
The S&P 500 rose 0.3%% to 2,052.32 this week after rising 0.6% today, while the Dow Jones Industrial Average fell 0.2% to17,500.94 this week after advancing 0.4% today. The Nasdaq Composite climbed 1.1% to4,769.56 this week after jumped 1.2% today.
The week started with volatility galore, as investors fretted that a more hawkish Fed would push the dollar higher and cause the market to fall. Wells Fargo’s Gina Martin Adams and Peter Chung aren’t concerned that a stronger dollar will cause the stock market to fall:
Several warnings that the dollar is poised to recover have been released in recent weeks, and the prevailing assumption seems to be that a recovery in the dollar will present trouble for stocks. While the recent negative relationship between the dollar and stocks looks a bit worrisome on the surface, we are not convinced that the market will suffer more than a modest correction if the dollar recovers in the months ahead…
Top 10 Quality Companies To Invest In 2016: BioDelivery Sciences International Inc.(BDSI)
BioDelivery Sciences International, Inc., a specialty pharmaceutical company, focuses on developing and commercializing products in the areas of pain management and oncology supportive care. The company uses its patented BioErodible MucoAdhesive (BEMA) and Bioral cochleate drug delivery technologies in the development of its products. The BEMA technology is a small erodible polymer film for application to the buccal mucosa; and the Bioral cochleate drug delivery technology encapsulates a selected drug or therapeutic in a cochleate cylinder. Its pain franchise consists of products utilizing the patented BEMA technology, including ONSOLIS, a fentanyl buccal soluble film for the management of pain in opioid tolerant adult patients with cancer; and BEMA Buprenorphine, which is in the development stage for the treatment of moderate to severe chronic pain, as well as for the treatment of opioid dependence. The company also engages in developing product candidates utilizing the B EMA technology for conditions, such as nausea/vomiting. BioDelivery Sciences International, Inc. was founded in 1997 and is headquartered in Raleigh, North Carolina.
- [By Lisa Levin]
In trading on Friday, healthcare shares fell by 0.62 percent. Meanwhile, top losers in the sector included Akorn, Inc. (NASDAQ: AKRX), down 17 percent, and BioDelivery Sciences International, Inc. (NASDAQ: BDSI), down 14 percent.
Top 10 Quality Companies To Invest In 2016: Bunge Limited(BG)
Bunge Limited, together with its subsidiaries, operates as an agribusiness and food company worldwide. It operates through five segments: Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer. The Agribusiness segment engages in the purchase, storage, transport, processing, and sale of agricultural commodities and commodity products, such as oilseeds and grains, including soybeans, rapeseed, canola, sunflower seeds, wheat, and corn to animal feed manufacturers, livestock producers, wheat and corn millers, and other oilseed processors, as well as third-party edible oil processing companies, and biodiesel industries. The Edible Oil Products segment provides packaged and bulk oils, shortenings, margarines, mayonnaise, sauces, pastes, condiments, and seasonings to baked goods companies, snack food producers, restaurant chains, food service distributors, and other food manufacturers, as well as gr ocery chains, wholesalers, distributors, and other retailers. The Milling Products segment produces and sells various wheat flours and bakery mixes; and corn milling products, including dry-milled corn meals, flours, flaking and brewer’s grits, soy-fortified corn meals, corn-soy blend products, and other products, as well as sells rice products. The Sugar and Bioenergy segment produces and sells sugar and ethanol; trades and merchandises sugar; and generates electricity from burning sugarcane bagasse. As of December 31, 2015, this segment had a total installed capacity of approximately 322 megawatts. The Fertilizer segment produces, blends, and distributes nitrogen, phosphate, and potassium fertilizers comprising phosphate-based liquid and solid nitrogen fertilizers; single super phosphate; and ammonia, urea, ammonium thiosulfate, monoammonium phosphate, diammonium phosphate, triple supersphosphate, UAN, ammonium sulfate, and potassium chloride products. Bunge Limited was fo unded in 1818 and is headquartered in White Plains, New York! .
- [By David Sterman]
He subsequently closed that position with a nice profit, and he should now check out rival Bunge (NYSE: BG), which in my view, holds better value. (I'll have more to say about Bunge in a separate column in coming weeks).
- [By Cameron Swinehart]
A diversified agriculture ETF with holdings in a variety of the largest agribusiness companies globally. Holdings include Bunge (BG), Archer Daniel Midland (AMD), PotashCorp (POT) and Deere (DE).
5 Best Valued Stocks To Watch Right Now: Facebook, Inc.(FB)
Facebook, Inc. operates as a mobile application and Website that enables people to connect, share, discover, and communicate each other on mobile devices and personal computers worldwide. Its solutions also include Instagram, a mobile application that enables people to take photos or videos, customize them with filter effects, and share them with friends and followers in a photo feed or send them directly to friends; Messenger, a messaging application for mobile and Web on various platforms and devices, which enable people to reach others instantly, as well as enable businesses to engage with customers; and WhatsApp Messenger, a mobile messaging application. The company also develops Oculus virtual reality technology and content platform, which allow people to enter an immersive and interactive environment to play games, consume content, and connect with others. As of December 31, 2015, it had 1.04 billion daily active users ( DAUs) and 934 million DAUs who accessed Facebook from a mobile device. Facebook, Inc. was founded in 2004 and is headquartered in Menlo Park, California.
- [By Paul Ausick]
Todays IPOs set up the coming Twitter IPO as a potential blockbuster. They also wipe away some of the bad feeling left behind from last years big Facebook Inc. (NASDAQ: FB) IPO. In that one, Facebook got its desired $100 billion valuation and buyers got the shaft. Today, buyers got the money and the companies probably got less than they should have. How will Twitter decide to play it?
- [By Lee Jackson]
Facebook Inc. (NASDAQ: FB) is the epitome of the Wall Street research Titanic voyage. Beloved as the hottest stock ever before a botched IPO, analysts could not stand the stock as it sunk to its high teen lows. Now, at 52-week highs, everybody is a buyer. UBS concedes that despite the hot run, Facebook probably is still under-owned by institutions. The consensus target for the social media giant is $45.
- [By Ant贸nio Costa]
Facebook Inc(NASDAQ: FB) Friday’s action suggested that there is more room for the uptrend to grow on stock before a more significant pullback. On the daily chart, technical indicators are bullish. The stock is regaining momentum with daily MACD back above its signal line and moving up in positive territory. Both the 50-day and 200-day EMAs are rising and the stock is trading well above them. Slow stochastic and RSI are both inside their overbought zones. On the downside, the stock has strong supports at 45.62 and 43.11
- [By Jake Zamansky]
Indeed, the NASDAQ breakdowns follow almost a litany of other technology failures on Wall Street. Those include the recently botched Facebook (FB) IPO, the May 2010 flash crash and, most recently, Goldman Sachs (GS) flooding the U.S. options market with a number of unintended computer-driven trades in companies such as JPMorgan Chase (JPM) and Kellogg (K) Company.
Top 10 Quality Companies To Invest In 2016: Marathon Oil Corporation(MRO)
Marathon Oil Corporation, through its subsidiaries, operates as an international energy company with operations in the United States, Canada, Africa, the Middle East, and Europe. It operates through three segments: Exploration and Production, Oil Sands Mining, and Integrated Gas. The Exploration and Production segment explores for, produces, and markets liquid hydrocarbons and natural gas. The Oil Sands Mining segment mines, extracts, and transports bitumen from oil sands deposits in Alberta, Canada; and upgrades the bitumen to produce and market synthetic crude oil and vacuum gas oil. The Integrated Gas segment markets and transports products manufactured from natural gas, such as liquified natural gas and methanol. The company was formerly known as USX Corporation and changed its name to Marathon Oil Corporation in July 2001. Marathon Oil Corporation was founded in 1887 and is based in Houston, Texas.
- [By Joshua Bondy]
The smaller players
Marathon Oil (NYSE: MRO ) recently spun off its downstream assets into Marathon Petroleum. Marathon Oil’s development of the Bakken and Eagle Ford are the main changes boosting its production volumes. Year-over-year, its second quarter U.S. volumes increased 38%. The Eagle Ford alone averaged 80 Mboepd and the Bakken averaged 39 Mboepd.
- [By Matt Egan]
Before Tuesday, Big Oil’s credit ratings had been left largely intact by S&P. But with oil sinking back to $30 a barrel, the ratings firm took action by downgrading Chevron (CVX), EOG Resources (EOG), Apache (APA), Devon Energy (DVN), Hess (HES), Marathon Oil (MRO), Murphy Oil (MUR), Continental Resources (CLR) and Southwestern Energy (SWN).
Top 10 Quality Companies To Invest In 2016: iShares MSCI Europe Financials Sector Index Fund(EUFN)
iShares MSCI Europe Financials ETF, formerly iShares MSCI Europe Financials Sector Index Fund (the Fund), is an exchange traded fund. The Fund seeks investment results that correspond generally to the price and yield performance of the MSCI Europe Financials Index (the Index). The Index is a free float-adjusted market capitalization weighted index designed to measure the combined equity market performance of the financials sector of developed market countries in Europe. Component securities include those of banks, diversified financial companies, insurance companies and real estate companies. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. The Funds investment adviser is BlackRock Fund Advisors. Advisors’ Opinion:
- [By Wayne Duggan]
Investors looking to set up a pair trade to capitalize on the divergent paths of U.S. and European banks should consider going long the iShares Dow Jones US Financial (ETF) (NYSE: IYF) and short the Ishares MSCI Europe Fincls Sctr Indx Fd (NASDAQ: EUFN).
Top 10 Quality Companies To Invest In 2016: Biogen Idec Inc(BIIB)
Biogen Idec Inc. discovers, develops, manufactures, and markets therapies for the treatment of neurodegenerative diseases, hemophilia, and autoimmune disorders in the United States and internationally. Its marketed products include the AVONEX for the treatment of relapsing multiple sclerosis (MS); RITUXAN for treating relapsed or refractory, CD20-positive, and B-cell Non-Hodgkin?s lymphoma (NHL); TYSABRI to treat relapsing MS; FUMADERM for the treatment of severe plaque psoriasis in adult patients; and FAMPYRA, an oral compound for the improvement of walking in adult patients with MS with walking disability. Biogen Idec Inc.?s products under Phase III consist of PEGylated interferon beta-1a designed to prolong the effects and reduce the dosing frequency of interferon beta-1a; BG-12 for the treatment of MS; Daclizumab, a monoclonal antibody in relapsing MS; Long-lasting factor IX and VIII fusion protein for the treatment of hemophilia B; GA101, a monoclonal antibody for t h e treatment of chronic lymphocytic leukemia and NHL; and Dexpramipexole, an orally administered small molecule for the treatment of amyotrophic lateral sclerosis. The company?s Phase I clinical trial products include Anti-LINGO for use in multiple sclerosis, Neublastin for use in neuropathic pain, CD40L for use in systemic lupus erythematosus, ANTI-TWAEK humanized monoclonal antibody for TWEAK, and BIIB037 for use in Alzheimer’s disease; and Phase II clinical trial product comprises OCRELIZUMAB, a humanized monoclonal antibody for treating CD20. It has collaboration agreements with Genentech, Inc.; Elan Pharma International, Ltd; Acorda Therapeutics, Inc.; Portola Pharmaceuticals, Inc.; Swedish Orphan Biovitrum AB; Abbott Biotherapeutics Corp; and Vernalis plc. The company was formerly known as IDEC Pharmaceuticals Corporation and changed its name to Biogen Idec Inc. in November 2003. Biogen Idec Inc. was founded in 1985 and is headquartered in Weston, Massachusetts.
- [By Ben Levisohn]
Piper Jaffray’s Joshua Schimmer and team offer their take on the Biogen (BIIB) takeover speculation that sent shares of the biotech giant soaring this afternoon:
Bloomberg News/Scott Eisen
Biogenshares are trading higher on a WSJ report which indicates the company may have interest from prospective pharma buyers. The WSJ is one of the more credible sources for such speculation and is often a publication used to put companies ‘in play’, we believe. Because of its higher bar for sourcing M&A interest such as this, we think the report is a strategy being used to catalyze a potential deal. That said, we believe there are a number of challenges to be overcome for any transaction to materialize. As we have noted recently our outlook on BIIB is more optimistic, and there is now a new dynamic to the investment opportunity…
Makes sense, mostly: One of our bigger frustrations withBiogen has been the R&D investments which we see as a poor use of capital. A potential acquirer would have the potential to leverage theBiogen cash flows more productively. Timing of the announcement relative to the CEO departure is a bit awkward as one wouldn’t want to switch horses in midstream of a potential acquisition but we assume the interest emerged in response to SMA data in the broader context of a frustrated investor base…
Still biding our time: While it’s too dangerous to be UnderweightBiogen given the potential upside opportunities, we are still gauging whether the stock’s reaction to this news has limited upside substantially or represents too high a move given the challenges in consummating a transaction…For now we remain Neutral on shares as we wait to see how this plays out.
RBC’s Michael Yee and team argue that Biogen “remains undervalued” and has “huge upside potential.” They explain why:
The WSJ is reporting today that Biogen has drawn info
- [By Ben Levisohn]
We explained why Tesla Motors (TSLA) needs to raise money and why it doesn’t matter, why General Electric (GE) might be running out of juice, and how a potential Biogen (BIIB) takeover would be different than most.
- [By Johanna Bennett]
The earnings season for Big Biotech kicks of later this month when Biogen (BIIB) unveils second quarter financial results on July 21. But will those reports be enough to reverse the negative sentiment surrounding the sector?
The biotech analyst team at Cowen expects strong earnings driven by ,solid demand, an open pricing environment in the U.S. and a currency tailwind. But, they warn, the sector may lack sizzle.
Steady financial performance in the absence of an exciting new product cycle may not be enough to overcome negative sentiment toward the groupInvestors are increasingly of the view that biotech fundamentals have deteriorated. They cite disappointing drug launches, a lack of pipeline catalysts, heightened payor pressures, and earnings growth that appears more dependent on financial engineering. While we admit that biotech is lacking an exciting new product cycle, we are not aware of any changes to the drug development process or commercial landscape that could have altered the industry’s fundamental value proposition. Rather we suspect that poor stock performance and investor sentiment may be engendering a “glass half empty” view toward fundamentals that are largely unchanged relative to a year ago when investors were touting biotech for its innovation cycle and increased R&D productivity. Earnings are the most objective metric for gauging perfor mance, and we expect Q2 to support the notion that biotech’s growth outlook and value proposition remain favorable relative to other sectors. As such, Q2 should provide the sector with a firmer level of support. However, more substantial upside is likely to be dependent on a change in sentiment, which is subjective and always difficult to predict in terms of timing.
Which names are the best plays?
According to Cowen, names with the potential to report Q2 results in excess of consensus include Acorda Therapeutics (ACOR), Alexion (ALXN), Biogen,
Top 10 Quality Companies To Invest In 2016: Statoil ASA(STO)
Statoil ASA, an energy company, explores for, produces, transports, refines, and markets petroleum and petroleum-derived products, and other forms of energy in Norway and internationally. The company operates through Development and Production Norway; Development and Production International; Marketing, Midstream and Processing; and Other segments. It owns exploration licenses in Norway, North America, South America and sub-Saharan Africa, North Africa, Europe and Asia, and the Oceania. The company also transports, processes, manufactures, markets, and trades oil and gas commodities, such as crude, condensate, gas liquids, products, natural gas, and liquefied natural gas (LNG); markets and trades electricity and emission rights; and operates refineries, gas processing plants, LNG plant, methanol plant, and crude oil terminals. In addition, the company develops offshore wind, and carbon capture and storage projects, as well as offers other renewable energy and low-carbon energy solutions. As of December 31, 2015, it had proved reserves of 5,060 million barrels of oil equivalent. The company was formerly known as StatoilHydro ASA and changed its name to Statoil ASA in November 2009. Statoil ASA was founded in 1972 and is headquartered in Stavanger, Norway.
- [By Ben Levisohn]
We believe that the equity market has neutralised much of its underweight energy positioning in 4Q/1Q, but was caught by the sharp rally in crude from end-January. Our base-case sees oil prices still higher by end-2016 (we see >$50/bbl), albeit with a choppy 2Q likely ahead. In this scenario a modest, rather than fully-fledged price-recovery we continue to place a lot of importance on self-help in driving ROE expansion (as opposed to relying simply on oil-leverage). Value-adjusted, we like the self-help stories around Total, Chevron, Statoil (STO), Royal Dutch Shell and Eni (E) in the group. Total is on the Citi European Focus list.
Top 10 Quality Companies To Invest In 2016: Inphi Corporation(IPHI)
Inphi Corporation provides high-speed analog and mixed signal semiconductor solutions for the communications, datacenter, and computing markets worldwide. The companys analog and mixed signal semiconductor solutions offers high signal integrity at data speeds while reducing system power consumption. Its semiconductor solutions are designed to address bandwidth bottlenecks in networks, maximize throughput and minimize latency in computing environments, and enable the rollout of next generation communications, datacenter, and computing infrastructures. Its solutions provide a high-speed interface between analog signals and digital information in high-performance systems, such as telecommunications transport systems, enterprise networking equipment, datacenters and enterprise servers, storage platforms, test and measurement equipment, and military systems. The company also provides 10G/40G, 100G, and beyond 100G high-speed anal og semiconductor solutions for the communications market and high-speed memory interface solutions for the computing market. Its products perform a range of functions, such as amplifying, encoding, multiplexing, demultiplexing, retiming, and buffering data and clock signals at speeds up to 100 Gbps. Inphi Corporation sells its products directly through its sales force, as well as through a network of sales representatives and distributors to original equipment manufacturers. The company was formerly known as TCom Communications, Inc. and changed its name to Inphi Corporation in February 2001. Inphi Corporation was incorporated in 2000 and is headquartered in Santa Clara, California.
- [By Roberto Pedone]
Inphi (IPHI) provides high-speed analog and mixed signal semiconductor solutions for the communications, datacenter and computing markets. This stock closed up 4.7% at $13.25 in Monday’s trading session.
Monday’s Volume: 838,000
Three-Month Average Volume: 202,080
Volume % Change: 378%
From a technical perspective, IPHI jumped higher here right above some near-term support at $12.44 with heavy upside volume. This stock has been uptrending strong for the last five months, with shares soaring higher from its low of $8.62 to its intraday high of $13.85. During that uptrend, shares of IPHI have been consistently making higher lows and higher highs, which is bullish technical price action. That move briefly pushed shares of IPHI into breakout territory, since the stock flirted with some near-term overhead resistance at $13.50.
Traders should now look for long-biased trades in IPHI as long as it’s trending above some near-term support at $12.44 and then once it sustains a move or close above its new 52-week high at $13.85 with volume that hits near or above 202,080 shares. If we get that move soon, then IPHI will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are its next major overhead resistance levels at $14.79 to $16.94, or possibly even $18.
Top 10 Quality Companies To Invest In 2016: Schnitzer Steel Industries, Inc.(SCHN)
Schnitzer Steel Industries, Inc. recycles ferrous and nonferrous scrap metals; and manufactures finished steel products worldwide. It operates through two segments, Auto and Metals Recycling (AMR) and Steel Manufacturing Business (SMB). The AMR segment buys, collects, processes, recycles, sells, and brokers scrap metals, as well as processes mixed and large pieces of scrap metal into smaller pieces by crushing, torching, shearing, shredding, and sorting. This segment offers ferrous scrap metal, a feedstock used in the production of finished steel products; and nonferrous products, including aluminum, copper, stainless steel, nickel, brass, titanium, lead, high temperature alloys, and joint products. It sells ferrous and nonferrous recycled metal products to steel mills, foundries, and smelters. This segment also procures salvaged vehicles and sells serviceable used auto parts from these vehicles through its 55 self-service aut o parts stores in the United States and Western Canada, as well as sells auto bodies and parts containing ferrous and nonferrous materials, such as engines, transmissions, and alternators to wholesalers. The SMB segment produces various finished steel products using recycled metal and other raw materials. It offers semi-finished goods, which include billets; and finished goods consisting of rebar, coiled rebar, wire rods, merchant bars, and other specialty products. This segment serves steel service centers, construction industry subcontractors, steel fabricators, wire drawers, and farm and wood products suppliers. Schnitzer Steel Industries, Inc. was founded in 1906 and is headquartered in Portland, Oregon.
- [By Monica Gerson]
Darden Restaurants, Inc. (NYSE: DRI) is estimated to report its quarterly earnings at $1.08 per share on revenue of $1.81 billion. ConAgra Foods Inc (NYSE: CAG) is expected to report its quarterly earnings at $0.52 per share on revenue of $2.89 billion. Paychex, Inc. (NASDAQ: PAYX) is projected to report its quarterly earnings at $0.49 per share on revenue of $751.52 million. Micron Technology, Inc. (NASDAQ: MU) is expected to post a quarterly loss at $0.09 per share on revenue of $2.95 billion. McCormick & Company, Incorporated (NYSE: MKC) is estimated to report its quarterly earnings at $0.74 per share on revenue of $1.06 billion. Constellation Brands, Inc. (NYSE: STZ) is expected to report its quarterly earnings at $1.51 per share. Schnitzer Steel Industries, Inc. (NASDAQ: SCHN) is estimated to report its quarterly earnings at $0.18 per share on revenue of $356.41 million. Franklin Covey Co. (NYSE: FC) is expected to post its quarterly earnings at $0.08 per share on revenue of $49.89 million. Lindsay Corporation (NYSE: LNN) is projected to report its quarterly earnings at $0.99 per share on revenue of $148.43 million.
Posted-In: Earnings scheduleEarnings News Pre-Market Outlook Markets
Top 10 Quality Companies To Invest In 2016: 8×8 Inc(EGHT)
8×8, Inc. develops and markets telecommunications services for Internet protocol (IP), telephony, and video applications. The company offers 8×8 Virtual Office Business Telephone Service, an alternative to traditional private branch exchange systems that offers automated attendants to assist callers; extension-to-extension dialing services; direct inward dial; conference bridge, 3-way calling, music on hold, call park/pick-up, call transfer, hunt groups, and do not disturb services; voice mail, including email alerts and direct transfer to mailbox; call waiting/caller-ID; distinctive tone ringing; and optional receptionist console applications. Its products also include 8×8 Complete Contact Center, an integrated hosted call center solution that consists of skill-based routing, multi-media management, real time monitoring and reporting, voice recording and logging, historical reporting, interactive voice response, CRM integration, and contact and case management tools; 8×8 IP Telephones; 8×8 Virtual Meeting, a video Web conferencing service; and 8×8 Managed Hosting and Cloud-Based Computing Solutions. In addition, the company offers 8×8 Virtual Office Pro Unified Communications that allows subscribers to manage business communications functions online and delivers various tools, such as Microsoft Outlook contacts and corporate directory integration; virtual meeting; Virtual Office Mobile extension; fax; call recording; presence management; and a view of voicemails, recordings, FAX messages, calls, and chat history. The company markets its services under 8×8 brand to end users through direct sales force, Web site, and third party resellers primarily in the United States. As of June 30, 2011, it had approximately 25,000 business customers. 8×8, Inc. was founded in 1987 and is headquartered in Sunnyvale, California.
- [By Lisa Levin]
On Thursday, telecommunications services shares gained by 0.42 percent. Meanwhile, top gainers in the sector included 8×8, Inc. (NASDAQ: EGHT), up 4 percent, and NQ Mobile Inc (ADR) (NYSE: NQ), up 2 percent.