Markets fluctuate ahead of ECB meeting

Dow inched up 11, decliners slightly ahead of advancers & NAZ lost 5.  The Financial Index did little in the 203s.  The MLP index was off a fraction in the 396s & the REIT index fell a fraction to 268.  Junk bond funds were mixed & Treasuries pulled back a tad.  Oil was flat & gold declined for the first time in 3 sessions as a ECB plan to buy bonds as part of an economic-stimulus program lowered demand for the precious metal as a hedge against inflation.

AMJ (Alerian MLP Index tracking fund)

Click below the latest Daily update:

Treasury yields:

U.S. 3-month	0.101%
U.S. 2-year	0.234%
U.S. 10-year	1.589%

CLV12.NYM

...Crude Oil Oct 12

...95.36

... 0.06

(0.1%)

Motorola is broadening the use of its Razr brand to a family of smartphones in its first major product launch under new owner Google (GOOG).  Verizon Wireless (VZ) starts to take pre-orders for the first of the new phones, the Droid Razr M.  It's a cheaper, smaller phone than the Razr that Motorola Mobility launched last year.  The Razr is the name of the wildly popular clamshell phone launched in 2004 but Motorola hasn't had a hit since then.  The $99 Razr M will be in stores next week which will be followed with the launch of 2 high-end models, the Razr HD & Razr Maxx HD, later this year.  It's emphasizing long battery life, up to 21 hours of talk time for the Maxx HD or 10 hours of video streaming.

Motorola Unveils New Verizon Phones, Including a $99 Razr

Speaking of technology, Amazon (AMZN) is readying an updated Kindle Fire tablet, seeking to revive demand for the 10- month-old device as the market crowds with competing machines.  AMZN is holding an event tomorrow where it is expected to announce the newest versions of its line of Kindle e-readers & the Kindle Fire tablet.  The company said it sold out of the Kindle Fire last week.  Last year’s holiday shoppers helped vault its share of the market to 17% in the Dec period, according to IDC.  But demand for the Kindle Fire has since stalled when the Q1 share slumped to 4%. The stock slipped $2.

Amazon Readies Kindle Fire Update to Keep Up in Tablets

Amazon (AMZN)

After Nokia revealed its first smartphones to run the next version of Windows, Microsoft (MSFT), a Dow stock, will have a lot of catching up in the phone world.  Android & Apple (AAPL) devices dominate in smartphones, with 85% of the worldwide market combined, according to IDC   Companies making Android devices include Samsung Electronics, HTC & Motorola Mobility, part of GOOG.  Samsung also makes phones running Bada, which is based on Linux.

Here are the figures for worldwide smartphone unit sales & market share in Q2, by operating system.
— Android (Google) — 104.8M units, 68.1% share (46.9% a year earlier)
— iOS (iPhone) — 26.0M units, 16.9% share (18.8% a year earlier)
— BlackBerry (Research in Motion.) — 7.4M units, 4.8% share (11.5% a year earlier)
— Symbian (mostly Nokia) — 6.8M units, 4.4% share (16.9% a year earlier)
— Windows (Microsoft) — 5.4M units, 3.5% share (2.3% a year earlier)
— Linux — 3.5M units, 2.3% share (3.0% a year earlier)
— Others — 0.1M units, 0.1% share (0.5% a year earlier)

Worldwide market share for smartphones AP


Traders don't want to take on new positions as eyes watch for the outcome of the ECB meeting tomorrow & then the big jobs report on Fri.  The ECB meeting has the potential for disappointment because hopes for a super bailout for the € have been raised so high.  Any bond buying program would have to wait for a ruling by the German court next week.  Dow remains above 13K, not far from its center line for more than 7 months.

Dow Jones Industrials

Get Trend Analysis 

Click Here

Markets rise on M&A activity

Dow gained 109, advancers over decliners 5-1 & NAZ was up 17.  Bank stocks are leading the way up but the chart for the Financial Index still looks dismal (down YTD & over the last 12 months).

S&P 500 Financials Sector Index

Value	175.31
Change	3.56    (2.1%)

The MLP index rose 5+ to the 356s, taking it above the critical 350 support level & the REIT index was up almost 5 to 223.  Junk bond funds rose about 1% & Treasuries were marginally lower.  Oil rose on news that Japan's economy contracted less than estimated in Q2.  Gold inched higher looking to build a base for another advance..

ALERIAN MLP Index (^AMZ)

Treasury yields:

U.S. 3-month	0.005%
U.S. 2-year	0.191%
U.S. 10-year	2.242%

CLU11.NYM

...Crude Oil Sep 11

...86.89

... 1.51

(1.8%)

GCQ11.CMX

...Gold Aug 11

....1,741.40

.... 1.20  (0.1%)

Get the latest market update below:






Photo:   Yahoo

Google is buying cell phone maker Motorola Mobility for $12½B ($40 per share, 63% above the Fri close), by far its biggest acquisition & a sign GOOG is serious about expanding beyond its core internet business.  MMI was separated from the rest of Motorola in Jan & the company has remade itself as a maker of smartphones based on Android.  "Motorola Mobility's total commitment to Android has created a natural fit for our two companies," said Google CEO Larry Page. "Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers."  GOOG dropped 15 & MMI shot up 13.78 to 38.25.

Google to Buy Motorola Mobility for $12.5 Billion

Motorola, Inc. (MMI)

Google Inc. (GOOG)

Photo:   Bloomberg

Lowe's reported weaker-than-expected sales & cut its fiscal-year outlook for the 2nd time in 3 months as homeowners put off big renovations in an anemic US economy.  LOW is a victim of the ailing economy, weak housing market as well as cut-throat competition from larger rival Home Depot (HD).  US homebuilder sentiment remained stuck near historic lows in Aug & consumer sentiment worsened sharply in early Aug, falling to the lowest level in more than 3 decades.  "The volume of negative news and the unsettling impact on equity markets is having a significant effect on already fragile consumer mindset," CEO Robert Niblock said. "Consumers continue to focus on small ticket, less than $500, repair and maintenance items and projects."  Lowe's sales rose 1.3% to $14.5B in Q2, missing estimate of $14.75B & EPS was 64¢ ahead of 58¢ last year.  "Despite some recovery in our seasonal business, our performance for the quarter fell short of our expectations," Niblock said.  LOW fell 27¢ after having a tough time in 2011.

Lowe’s Reduces Profit Forecast on Sales Drop

Lowe's Companies, Inc. (LOW)

Markets opened the weak stronger, they are feeling good.  Of course, they remain in an oversold condition, so bargain hunters can be expected to be shopping.  The MLP index has rebounded over 40 off its lows last Mon.  But fundamental problems have not gone away.  There are growing worries about the European economy sliding & the US economy doesn't look so good.  European sovereign debt problems have brought many of their biggies back off holiday to do some patching & budget deficit problems continue in the US.as it adds $4B every day.to the annual deficit.  Bulls are happy with the bounce by the Dow off its lows last week. & a sense of calm in the markets.  

Dow Jones Industrial Average (^DJI)

Find out what's inside Trend TV 

Click Here

Get your favorite symbols' Trend Analysis TODAY! 

Click Here

Markets sold off on disappointing forecasts

Stocks sank at the beginning & were never able to break into the black. Dow fell 115 to another YTD low, decliners ahead of advancers 5-2 & NAZ dropped 42 on gloomy tech announcements. Banks drifted lower in late day trading. It's been 6 months since the Financial Index was able to make any headway.


S&P 500 FINANCIALS INDEX

Value 192.29

Change -0.78

% Change -0.4%

The Alerian MLP Index fell almost 1, taking it below 290 while the REIT index fell 1½. Junk bond funds were slightly lower today & down along with the stock markets YTD. The VIX was little changed in the 23s. The yield on the 10-year Treasury bond rose another 1+ basis point to 3.66%.


Alerian MLP Index --- YTD




Dow Jones REIT Index --- YTD





Oil & gold each inched up. It's surprising that the cold weather hasn't had more of an impact on oil.

CLH10.NYM

..Crude Oil Mar 10

..73.72

.. 0.05 ......(0.1%)

GCG10.CMX

..Gold Feb 10

..1,088.00

.. 3.50 ......(0.3%)

Gold video that redirects to the Course landing url! Click Here

Photo: Bloomberg




Apple (AAPL) is getting only lukewarm response on its new iPad. The thinking is it will will need more apps (beyond just gaming) & that may take time, 1+ years. For the same price, somebody can buy 2 netbooks which are useful on day 1. Apple was down 8½ to the 199s, this may be the start of significant selling in the stock.

Apple’s IPad May Take Year to Become Breakout Product


Apple --- 1 year





Qualcomm (QCOM) sounded a cautious note on the economy when it said a "subdued" recovery forced it to slightly dial back expectations for 2010 based on a lagging recovery in Europe & Japan plus greater demand for cheap phones. QCOM had expected sales of $10.5B - $11.3B for the fiscal year, which ends in Sep. It's new guidance is for $10.4B - $11B. But it's keeping the full-year earnings estimate at $1.56 - $1.76 per share. In addition QCOM gave a forecast for the current quarter that came in under the expectations with earnings of 49¢ - 53¢ excluding items & revenue between $2.4B - $2.6B. Analysts had been expecting earnings of 57¢ per share, excluding items, on revenue of $2.75B. The stock plunged almost 7 to prices not seen since Apr. Motorola also had a dreary report, down 92¢ (12%).

Qualcomm stock tumbles on cautious forecast
AP


Qualcomm --- 1 year




Motorola --- 1 year










Jan has been a difficult time for stocks, a bad sign for the rest of the year. Ben Bernanke is expected to get a 2nd term starting next week, but the vote will be fairly close. Tech stocks, MLPs & junk bonds have one thing in common, after a red hot year they are sinking this year. OK, MLPs are up YTD but they look like they could break into the red soon. The bears out there are getting more attention!

Dow Jones Industrials --- YTD




Nasdaq --- YTD

Stocks slump again

Jobless claims declined, normally a boost for stocks. But a another terrible housing report & cautious earnings comments sent stocks lower. Dow is down 31, decliners over advancers 2-1 & NAZ down 11. Tough day. The housing report is dismal. Sales of new homes are at a 17 year low. Factory orders for big-ticket goods fell for a 3rd straight month in Mar, the longest string of declines since the 2001 recession. The Commerce Dept said demand for durable goods dropped by 0.3% last month, worse-than-expected. The last time orders fell for three consecutive months was Feb-Apr, 2001, when the country was sliding into the last recession.

Stanley Works (SWK), a member of the S&P Dividend Aristocrat list & a favorite of mine as shown on the right widget, was down 2.50 on tough earnings. They squeezed out higher profits & EPS was up 5¢ on fewer shares, but SWK remains cautious for the rest of the year. They feel the depressed housing market & are going to have to squeeze costs harder to make their guidance range of 4.20-4.40 for EPS. MMM (MMM), a Dow company & another member of the S&P Div Aristoctat list, was down 2.51 on so-so earnings. They reported the same story, lower earnings but beating analyst expectations. Overseas business is solid helped by currency gains adding 7¢ to EPS. Now they have to hunker down for a difficult year. While Ford (F) had a good report, earnings for Starbux (SBUX) & Motorola (MOT) were not favorable sending their stocks lower.