Stock Trading

Global economic bellwether FedEx (FDX) reported earnings today and provided us with a pretty good overview of the state of things. Here are some key pieces of the report: FedEx is revising its earnings guidance practices to focus on full fiscal year projections with quarterly updates. For fiscal 2014, the company projects earnings per share growth of 7% to 13% from fiscal 2013 adjusted results. This assumes the current market outlook for fuel prices, U.S. GDP growth of 2.3% and world GDP growth of 2.7%. Capital spending for fiscal 2014 is expected to be approximately $4 billion. 'We remain focused on improving margins and returns in all of our businesses. The pace of that improvement is expected to be moderate in fiscal 2014 and then accelerate in fiscal 2015,' said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. 'Our profit improvement program is progressing,

We now have Federal Reserve Chairman Ben Bernanke's press conference behind us, and we will be pulling it apart for nuances and insights for days. What I expected going into this presser was this: Bernanke will attempt to detail how exactly the data flow is supportive of scaling back asset purchases in the next few months (I believe the Fed prefers September) while at the same time disassociating asset purchases from interest rate policy. Of course, Bernanke did not say September. But I think he made clear that assuming the Fed's forecasts hold, it sees that asset purchases will be gradually reduced beginning later this year with the expectation that the Fed will draw QE to a close by the middle of next year. He confirmed my suspicion that although the Fed sees the fiscal sector as a drag on overall growth, it does not believe it has harmed

Petroleo Brasileiro – Petrobras (NYSE:PBR): Closing price $14.75 The Brazilian government-run oil company announced late on Tuesday that it might partner with China Petroleum & Chemical Corp. (Sinopec) so as to construct a much-needed refinery that would help to lower heavy imports of gasoline and diesel. Petrobras and Sinopec have signed a letter of intent through which to evaluate a possible joint venture to build the Premium 1 refinery in the northeastern Brazilian state of Maranhao. On June 10th, Petrobras reported a similar joint-venture study to build the Premium 2 refinery in nearby Ceara state, with the GS Energy Corp. Are these stocks a buy or sell? Let us help you decide. Check out our Stock Picker Newsletter now. Imperial Oil (AMEX:IMO): Closing price $39.60 On Wednesday, the Canadian integrated energy firm announced that it will convert its crude-oil refinery in Dartmouth, Nova Scotia, into a terminal operation, having failed to find a buyer that would be willing to operate the refinery. In May 2012, the company began shopping the refinery around, explaining that competition in the area had caused lower-than-anticipated financial returns from the operation. In its statement, Imperial Oil said that the failure to find a buyer shows “the challenges of operating a refinery of Dartmouth’s scale in the competitive conditions of the Atlantic Basin market.” The firm expects to post an after-tax charge of as much as $274 million in the second quarter linked with the conversion. Are these stocks a buy or sell? Let us help you decide. Check out our Stock Picker Newsletter now. Statoil (NYSE:STO): Closing price $21.85 According to Reuters, Statoil has reiterated that it is set to reach an output of 2.5 million barrels of oil equivalent per day in the fiscal year 2020, and that it potentially could surpass that amount. The firm’s production guidance for fiscal year 2013 also remains firm and should be lower than in the previous period, in which  Statoil produced 2,004 million barrels of energy equivalent. Are these stocks a buy or sell? Let us help you decide. Check out our Stock Picker Newsletter now. PetroQuest Energy (NYSE:PQ): Closing price $4.50 PetroQuest reported on Wednesday that it will acquire certain shallow water Gulf of Mexico producing properties for roughly $193 million in cash. The transactions will be effective as of January 1, 2013, and should close in July, subject to the usual closing conditions. Are these stocks a buy or sell? Let us help you decide. Check out our Stock Picker Newsletter now. Don’t Miss: Citigroup’s Unusual Problem: How to Incur More Taxes. Read the original article from Wall St. Cheat Sheet

With shares of News Corp. (NASDAQ:NWSA) trading around $32, is NWSA an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework: T = Trends for a Stock’s Movement News Corp. is a diversified global media company that operates in six segments: Cable Network Programming; Filmed Entertainment; Television; Direct Broadcast Satellite Television; Publishing; and Other. The company is involved in programming distribution through cable television systems and direct broadcast satellite operators; live-action and animated motion pictures distribution and licensing; operation of broadcast television stations and the broadcasting of network programming and in direct broadcast satellite business through its subsidiary, SKY Italia. News Corp. distributed information and entertainment through just about every medium possibe which reinforces a powerful presence. As companies and consumers continue to search for entertainment and information at increasing rates, look for companies like News Corp. to see rising profits. T = Technicals on the Stock Chart are Strong News Corp. stock been on a bullish run for the last several years. The stock is now pulling back a bit so it may need some time before it gets going again. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, News Corp. is trading slightly above its rising key averages, which signal neutral to bullish price action in the near-term. NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW! (Source: Thinkorswim) Taking a look at the implied volatility (red) and implied volatility skew levels of News Corp. options may help determine if investors are bullish, neutral, or bearish. Implied Volatility (IV) 30-Day IV Percentile 90-Day IV Percentile News Corp. Options 25.36% 60% 57% What does this mean? This means that investors or traders are buying a very significant amount of call and put options contracts, as compared to the last 30 and 90 trading days. Put IV Skew Call IV Skew July Options Flat Average August Options Flat Average As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a very significant amount of call and put option contracts and are leaning neutral to bullish over the next two months. On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion. E = Earnings Are Improving Quarter-Over-Quarter Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on News Corp.’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for News Corp. look like and more importantly, how did the markets like these numbers? 2013 Q1 2012 Q4 2012 Q3 2012 Q2 Earnings Growth (Y-O-Y) 221.05% 140.48% 235.71% 273.83% Revenue Growth (Y-O-Y) 13.54% 5.01% 2.22% 3.87% Earnings Reaction 4.48% -2.33% 1.60% -0.21% News Corp. has seen improving earnings and revenue figures over the last four quarters. From these numbers, the markets have had mixed feelings about News Corp.’s recent earnings announcements. P = Excellent Relative Performance Versus Peers and Sector How has News Corp. stock done relative to its peers, Time Warner (NYSE:TWX), Viacom (NASDAQ:VIA), Walt Disney (NYSE:DIS), and its sector at large? News Corp. Time Warner Viacom Walt Disney Sector Year-to-Date Return 27.13% 22.30% 26.98% 30.59%

By Karl Smith I like to keep an eye out for scenarios that may be unlikely, but if they unfold will come on fast and without the types of warning signs that people expect. Here is one. Steel prices are already moving downward. Slower growth out of the developing world continues to support that trend. Slower developing world growth will also drive down margins for heavy equipment manufacturers like Caterpillar (CAT). Increasing interest rates are slowing the housing recovery and lessen the demand for construction workers. This current rate rise is a bit of a conundrum, but for now let's assume that it makes sense and is not simply based on the market misreading the Fed's intentions or the Fed itself being stuck in some sort of odd policy trap. This gives us a scenario where steel, earthmovers, and construction workers are all relatively cheap. That implies that building pipeline

Best Buy (NYSE:BBY): SunTrust says that Best Buy is in the process of sweetening the terms of its loyalty program, including the removal of point expiration, increasing credits, and lowering prices. The firm continues to recommend shares given store and website efforts, a better defined strategy, and improving macro tailwinds, among other reasons. It keeps a Buy rating on the shares, with a $35 price target. NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW! IMAX (NASDAQ:IMAX): B. Riley is confident that IMAX shares should be bought on any weakness ahead of the Q3 results, as the firm reports that tough comps have historically not impeded the company’s results. It thinks the 18 percent year-over-year increase in commercial IMAX screens should help offset any risk to the company, and reiterates a $17 price target and Buy rating on the shares. NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW! Qualcomm (NASDAQ:QCOM): Recent supply checks by William Blair indicate that Qualcomm has picked up meaningful content in Samsung’s (SSNLF) Galaxy S4 platform and recommends using the recent weakness in Qualcomm shares as a buying opportunity, saying the stock is near the low end of its historical trading range. The firm has an Outperform rating on the shares. NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW! FedEx (NYSE:FDX): Citigroup sees the company’s FY14 guidance as being conservative, resting at 7 percent to 13 percent growth for earnings, or about $6.67-$7.04 per share. Citi says the company’s Q4 results were better than expected, and has a Buy rating on the stock. NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW! Don’t Miss: How Much Did This Tax Credit Boost Corporate Earnings? Read the original article from Wall St. Cheat Sheet

General Motors (NYSE:GM): GM has said that it has no further plans to invest more money in PSA Peugeot Citroen, which the company shares costs to jointly manufacture cars in Europe. Peugeot Citroen has lost substantial amounts of money in the flailing European automotive market, amounting to $6.74 billion in 2012. ”We don’t have any intentions of investing additional funds into PSA at this time,” said GM Chairman and Chief Executive Dan Akerson on the sidelines of an event in Shanghai. “If we see something change, we’ll evaluate that. But right now we have a joint purchasing endeavor that is going to yield significant saving for us, and we are sharing platforms at three different architectures,” he said. NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW! Tesla Motors (NASDAQ:TSLA): Tesla has issued a partial recall of its Model S sedans, stemming from a weakened mounting bracket on models built and delivered between May 10th and June 8th. CEO Elon Musk — who wrote the recall statement — pointed out that there have not been any customer complaints or injury due to the issue and no regulatory body has brought it to the company’s attention, but that the fault “reduces our confidence that the left hand seat back will be properly retained in the event of a crash.” NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW! Honda Motor Co. (NYSE:HMC): Honda has settled its lawsuit over engines that failed to meet emissions standards, and has agreed to pay $580,000 over the matter, which involved 437,000 nonroad engines. Additionally, the company also sacrificed some of its carbon credits. The case was settled to avoid the costs of litigation, “as well as the business distractions that litigation brings,” Honda said in a statement. NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW! Don’t Miss: Cadillac From the Future Pays Jay Leno a Visit. Read the original article from Wall St. Cheat Sheet

Intro George Economou, the CEO of Dry Ships, Inc. (DRYS), made his fortunes in the shipping industries and understands how the market drives profits. Economou received his degrees from the Massachusetts Institute of Technology in Maritime Management before going on to work for several shipping companies before branching off and beginning to establish his empire. Over the years he has built several companies, to include spinoffs, which he has used to buy and sell assets in order to protect his wealth.Prior to the global recession, Economou sat on top of an empire that was raking in huge profits and then suffered a massive net worth loss when trade came to a halt. Since then he has continued to navigate the rough economy and prepared for the eventual recovery. How he charted his course During the early 2000s, when shipping rates were growing, Economou aggressively grew DRYS from six ships

Verizon (NYSE:VZ): Verizon is exploring the idea of purchasing Canada’s Wind Mobile, as the company has been engaging in exploratory talks with the carrier to the north. Wind Mobile is “one of many” options under consideration, Bob Varettoni, a spokesman for Verizon, said on Wednesday in an e-mail. “We constantly evaluate a wide variety of business opportunities.” VimpelCom (NYSE:VIP), Wind’s largest owner, wants around $500 million, although Verizon may then have to pump in another $1-2 billion for spectrum purchases, network upgrades and consolidation costs. NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW! Sprint (NYSE:S): Janco’s calculations indicate that Sprint shareholders will receive $7.51 per share upon the closing of the deal with SoftBank, which the firm expects to happen on Tuesday, June 25th. The firm views upside to $7.51 from current levels as attractive, and keeps a Buy rating on Sprint shares. NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW! T-Mobile (NYSE:TMUS): Lost in the Verizon-Canada shuffle and Sprint’s ongoing fiasco with its suitors was the new that T-Mobile will be the exclusive seller of the Sony (NYSE:SNE) Xperia Z smartphone, which has been making waves internationally, including taking a sizable chunk from Japan’s high-end smartphone market. Exact availability and pricing were not offered. The interesting part? The Xperia Z is waterproof, and can be fully submerged and still function. NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW! Don’t Miss: The FOMC: We Can’t Taper QE Yet, Economy Slower Than Expected in 2013 Read the original article from Wall St. Cheat Sheet

The Boeing Company (NYSE:BA): Current price $102.25 Perhaps wishing to avoid the old stereotype of grossly overpaying for simple parts, the Pentagon’s purchasing agency says that Boeing must recompense the Defense Department $13.7 million from excessive prices charged on spare parts, among which include a $10 device for which it charged $2,286 each. In an emailed statement, spokeswoman Michelle McCaskill of the Defense Logistics Agency said that it “is seeking a refund from Boeing. The refund will be for the full $13.7 million identified” and will be requested by July 31st. The Agency overpaid roughly $1.3 million for 573 of the aluminum “bearing sleeves” used on an aircraft’s main landing-gear door that should have cost $10 apiece, according to the Pentagon’s inspector general in an audit labeled “For Official Use Only.” NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW! Bank of America Corporation (NYSE:BAC): Current price $13.19 A watchdog report filed in federal court on Wednesday said that four of the biggest domestic mortgage providers have failed to comply with an agreed-upon resolution. Bank of America Corp., J. P. Morgan Chase & Co., Citigroup, and Wells Fargo & Co. each  have failed one or more of the 29 metrics set forth in the landmark $25-billion national mortgage settlement between banks, federal agencies and 49 of the 50 state attorneys general. NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW! AT&T (NYSE:T): Current price $35.25 On Wednesday, AT&T and NEC Corporation of America  announced the upcoming intro of the ‘ultimate workhorse’ among ruggedized 4-gigabyte LTE smartphones, the NEC Terrain. The device’s design is meant to break productivity bottlenecks in order to keep workforces moving forward, while at the same time keeping up with daily life outside of work. The NEC Terrain, available exclusively through AT&T Business Solutions channels, and online beginning June 21st, will go for $99.99 with a two-year agreement, and can be bought at www.ATT.com/necterrain. NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW! Don’t Miss: Is Boeing Poised to Dominate Military Transportation? Read the original article from Wall St. Cheat Sheet