Nov 14, 2011
By: Anthony Rivieccio, MBA, PFA
So what is happening to our economy and the stocks within United States companies?
Our Economy in short, right now, is subject to the ups and downs of the European community.
US Banks fell, following declines in European lenders, as Italian bond yields rose to levels that drove Ireland, Portugal and Greece to seek international bailouts.
Morgan Stanley declined 5.5 percent . Citigroup Inc. slid 5 percent. JPMorgan Chase & Co. slumped 3.7 percent. Bank of America Corp. fell 3.8 percent. Goldman Sachs Group Inc. lost 3.5 percent.
So when Banks fall, according to US analysis, The US Economy falls with it-or does it?
This week, we believe the following stocks will have tremendous movement.
Activision Blizzard Inc.
The world’s largest video-game maker posted third- quarter profit that beat analysts’ estimates and raised its full-year forecast, citing new titles including the eighth “Call of Duty.”
Adobe Systems Inc.
The largest maker of graphic-design software shares said it will cut 750 jobs as it lessens its focus on older products and shifts investment to programs for digital publishing and Web advertising.
Blue Nile Inc.
The online retailer of diamonds and fine jewelry forecast fourth- quarter earnings to be between 41 cents and 43 cents a share, missing the average analyst estimate of 45 cents. The Seattle- based company also said Chief Executive Officer Diane Irvine will resign.
Dean Foods Co.
The biggest U.S. dairy processor reported third-quarter earnings excluding some items of 18 cents a share, beating the average analyst estimate of 15 cents.
General Motors Co.
The automaker reported that Europe operations lost $292 million before interest and taxes in the third quarter and said it no longer expects to achieve its target to break even in the region, citing “deteriorating economic conditions.”
The oil and gas exploration company reported loss excluding some items in the first quarter of 3 cents a share, missing the average analyst estimate of a loss of 2 cents.
Maidenform Brands Inc.
The maker of women’s undergarments cut its full year earnings forecast to $1.77 at most, below the average analyst estimate of $2.17, citing slowing consumer traffic and higher costs.
Prudential Financial Inc.
The second-biggest U.S. life insurer raised its dividend 26 percent to $1.45 as profit increased and rival MetLife Inc. was denied regulatory approval to boost its payout.
Rite Aid Corp.
The drugstore chain was raised to “outperform” from “neutral” at Credit Suisse Group AG, which said the company is “well positioned to capitalize” on the dispute between Walgreen Co.and Express Scripts Inc. and growing presence of generic drugs.
The maker of technology for home-entertainment systems had its rating cut at Collins Stewart LLC, Brean Murray Carret & Co., and Credit Agricole Securities USA. Collins Stewart cited “disappointing results” and 2011 and 2012 forecasts that were “well below expectations.”
Salix Pharmaceuticals Ltd.
The Morrisville, North Carolina-based drugmaker said it will acquire privately held Oceana Therapeutics for $300 million in a deal that it says will add to earnings “modestly” in 2012.
SodaStream International Ltd.
The producer of soda makers reported third-quarter earnings excluding some items of 37 euro cents a share, topping the average analyst estimate of 27 cents. The company boosted its 2011 net income forecast to 24 million euros from 20 million euros.
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The maker of flash-memory drives forecast fourth-quarter revenue to be no more than $57 million, falling shorting of the average analyst estimate of $72.1 million.
Universal Display Corp.
The developer of technologies used in flat-panel displays reported third-quarter earnings excluding some items of 12 cents a share, topping the average analyst estimate that the company would break even.
Alibaba Group Holding Ltd. and Softbank Corp. are talking with private-equity funds about making a bid for the Web portal without the company’s blessing. Separately, Yahoo, Microsoft Corp. and AOL Inc. , the three largest Web portals in the U.S., formed a partnership that lets advertisers buy ad space on the sites using a single exchange to ease the buying process and to boost demand.
What a week!
Anthony Rivieccio is the founder & The CEO of The Financial Advisors Group, celebrating their 10th year as a fee only financial planning firm specializing in solving one’s financial problems. Anthony has been a recognized financial expert since 1986. He has been seen, heard or read by many national and local media outlets including: Klipingers Personal Finance Magazine, The New York Post, News12 The Bronx, Bronxnet Channel 67 TV, The Norwood News, The West Side Manhattan Gazette, Financial Planning Magazine, WINS1010 Radio andThe Bronx News newspaper.