Weekly Stock Trader Newsletter, 10 November 2008
The Week Ahead: With unemployment numbers up ten consecutive months, momentum appears to be gaining as August and September figures were revised upward. Markets will key in on President Elect Barrack Obama's choices for economic positions in his administration. Bond markets are closed Tuesday for Veterans Day. Watch for further increases in the jobless claims numbers on Thursday as well as the trade balance. An important retail sales report for October is due Friday along with business inventories.
Stocks to Watch: Fluor Corp. (FLR) surprised traders by nearly doubling earnings for Q3 and beating estimates. The stock could be near resistance. The CEO of Autonation, Inc. (AN) is showing confidence in his business making more space for foreign vehicles, cutting debt, and meeting loan covenants. OSI Pharmaceuticals (OSI) had a late stage trial of Tarceva improve the survival rate in lung cancer patients as the stock gapped up from a recent low. Delta Petroleum (DPTR) declined significantly after Tracinda Corp. withdrew its tender offer.
Special Note: Dividend yields on many blue chip stocks have recently become more attractive relative to the recent past. The Dow Industrials and S&P 500 were down as much as 45% from their 2007 highs and reached a 3.7% dividend yield. This appears to be a good yield, but historically this level was considered low during most of the 1900's and near market tops. Since 1995 though yields reached the low 1% area indicating an extreme overvaluation in stocks. The average bear market bottom on the DJIA historically yields 6.5%.
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.
Click here to open an account.
NobleTrading Direct Access Trading
email: info@nobletrading.com
phone: 877.872.3311
web: http://www.nobletrading.com
Stocks to Watch: Fluor Corp. (FLR) surprised traders by nearly doubling earnings for Q3 and beating estimates. The stock could be near resistance. The CEO of Autonation, Inc. (AN) is showing confidence in his business making more space for foreign vehicles, cutting debt, and meeting loan covenants. OSI Pharmaceuticals (OSI) had a late stage trial of Tarceva improve the survival rate in lung cancer patients as the stock gapped up from a recent low. Delta Petroleum (DPTR) declined significantly after Tracinda Corp. withdrew its tender offer.
Special Note: Dividend yields on many blue chip stocks have recently become more attractive relative to the recent past. The Dow Industrials and S&P 500 were down as much as 45% from their 2007 highs and reached a 3.7% dividend yield. This appears to be a good yield, but historically this level was considered low during most of the 1900's and near market tops. Since 1995 though yields reached the low 1% area indicating an extreme overvaluation in stocks. The average bear market bottom on the DJIA historically yields 6.5%.
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.
Click here to open an account.
NobleTrading Direct Access Trading
email: info@nobletrading.com
phone: 877.872.3311
web: http://www.nobletrading.com
posted by Daniel Pipitone at
5:33 AM
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