Interesting developments to come - See what made the cut...
Company Share Buyback...
Investors are always looking for bargains and when companies take action to buy
back their own shares, frequently at deep discounts, investors are likely to
follow the trend. During the second quarter the following initiated Share
buybacks: Dell (DELL) shelled out $400 million on stock buyback; Hewlett-Packard
(HPQ) bought back $365 million worth of stock; Aetna (AET) shelled out $581
million on its stock buy-back; L-3 Communications (LLL) spent $315 million on
share buyback; Northrop Grumman (NOC) spent $295 million on share buyback;
GameStop (GME) bought back shares to the tune of $136 million. Never invest
money you cannot afford to lose. Investors are urged to do your due diligence on
any investment you make.
Fresh Talk of a New U.S. Stimulus Plan…
Gainers on the S&P 500 on Friday were let by mining and steel companies as fresh
talk of a new U.S. stimulus plan, paved the way. The odds of a new QE program is
almost imminent which could give a boost to overseas infrastructure spending
which will adversely affect the mining and steel companies. High fliers ending
the week last Friday were Alpha Natural Resources (ANR), Cliffs Natural
Resources (CLF), Peabody Energy (BTU), Consol Energy (CNX) and Joy Global (JOY).
Mining and steel companies could be a trading leader, in upcoming trading
Gold Futures on the Move…
For the third consecutive week, Gold prices are on the move again, higher last
week by 3.1%. On Friday, Gold for December delivery (CNS:GCZ2) moved higher by
$34.90 or 2.1%, to settle at $1,740.50 an ounce on the Comex division of the New
York Mercantile Exchange striking Gold's highest settlement since late February.
Negative jobs report is thought to hasten additional U.S. economic stimulus
measures, giving Gold a boost. European Central Bank chief Mario Draghi detailed
plans to help struggling euro-zone economies through bond purchases lead the
precious metal, toward newer highs. In the week to come, Gold traders are likely
to cash in on some profits which could move the precious metal, off its recent
Crude-Oil Futures Heading Higher…
On Friday, Crude for October delivery (NMN:CLV2) rose 42 cents or 0.5% to $95.96
a barrel on the New York Mercantile Exchange. Traders playing the Black-Gold
will be monitoring upcoming potential comments from European Central Bank chief
Mario Draghi which could potentially, move oil prices, still higher. Drivers
across the country could definitely use a break at the pumps. Average price at
the pump here in Florida, $3.76
China’s Economic Planners...
After announcement last week that China’s economic planners signed off on an
economic stimulus package roundly estimated at $150 billion, gave a surge to
commodities stocks such as coal and iron ore companies who sell their output to
steel mills. With China preparing to upgrade and expand its roads, bridges,
railways, subways, airports and ports, their going to need a lot more steel than
its own mills can crank out. Pending orders for steel from China could be huge
for U.S. coal and iron ore companies. The rally last Friday in coal and steel
stocks could be premature and overdone, considering the time involved before
China makes its move.