As counter-intuitive as it may seem, the US dollar strengthened for most of last week, despite the nomination of Janet Yellen as Fed chair and the continued partial closure of the US Federal government. While acknowledging the disruptions of the markets by the unprecedented expansion of central bank balance sheets and the new regulatory environment, the markets still appear to be functioning as a large discount mechanism.
The abyss (of a US default) was approached and many institutional investors needed to avoid exposure to short-term US bills. However, we first detected a change in tone on Tuesday, and others did on Wednesday. The collective sigh of relief lifted the S&P 500 by nearly 2.2% on Thursday, the second largest advancing session of the year. The Dollar-Index rose to 2-week highs. The dollar rose to 2-3 week highs against the sterling and yen and the highest in a month against the Canadian dollar.
Nearly no one really expected the US to default, but the risk of ruin had to be avoided. Volume for credit default swap protection from a US default has increased, according to some industry estimates, cited in the Financial Times, to 150 mln euros from 1.6 mln previously. Short-dated bills used for collateral or margin were replaced by some institutional investors with cash.
10 Best Integrated Utility Stocks To Invest In Right Now: Airgas Inc.(ARG)
Airgas, Inc., through its subsidiaries, distributes industrial, medical, and specialty gases, as well as hardgoods in the United States. The company offers various gases, including nitrogen, oxygen, argon, helium, and hydrogen; welding and fuel gases, such as acetylene, propylene, and propane; and carbon dioxide, nitrous oxide, ultra high purity grades, special application blends, and process chemicals. Its hardgoods products comprise welding consumables and equipment, safety products, and construction supplies, as well as maintenance, repair, and operating supplies. The company also engages in the rental of gas cylinders, cryogenic liquid containers, bulk storage tanks, tube trailers, and welding and welding related equipment. In addition, the company manufactures and distributes liquid carbon dioxide, dry ice, nitrous oxide, ammonia, refrigerant gases, and atmospheric merchant gases. It serves repair and maintenance, industrial manufacturing, energy and infrastructure co nstruction, medical, petrochemical, food and beverage, retail and wholesale, analytical, utilities, and transportation industries. The company operates an integrated network of approximately 1100 locations, including branches, retail stores, packaged gas fill plants, specialty gas labs, production facilities, and distribution centers. Additionally, it provides retail solutions to retail customers, such as florists, grocers, restaurants and bars, tire and automotive service centers, and others. The company markets its products through multiple sales channels, including branch-based sales representatives, retail stores, strategic customer account programs, telesales, catalogs, e-business, and independent distributors. Airgas, Inc. was founded in 1982 and is based in Radnor, Pennsylvania.
Advisors' Opinion:- [By Monica Gerson]
Airgas (NYSE: ARG) is expected to report its Q2 earnings at $1.22 per share on revenue of $1.28 billion.
The Boeing Company (NYSE: BA) is estimated to report its Q3 earnings at $1.55 per share on revenue of $21.68 billion.
10 Best Canadian Stocks To Watch Right Now: (AUQ)
AuRico Gold Inc. engages in the exploration, development, and production of gold and silver projects and properties in Canada, Mexico, and Australia. Its principal property includes the Ocampo mine covering approximately 15,000 hectares located in Chihuahua State. The company was formerly known as Gammon Gold Inc. and changed its name to AuRico Gold Inc. in June 2011. AuRico Gold Inc. was founded in 1986 and is based in Toronto, Canada.
Advisors' Opinion:- [By Garrett Cook]
In trading on Tuesday, basic materials shares were relative leaders, up on the day by about 0.02 percent. Top gainers in the sector included AuRico Gold (NYSE: AUQ), up 4.9 percent, and CF Industries Holdings (NYSE: CF), up 6.5 percent.
- [By Garrett Cook]
In trading on Wednesday, basic materials shares were relative leaders, up on the day by about 0.93 percent. Top gainers in the sector included Aluminum Corporation Of China (NYSE: ACH), AuRico Gold (NYSE: AUQ), and Coeur Mining (NYSE: CDE).
10 Best Canadian Stocks To Watch Right Now: Kinross Gold Corporation(KGC)
Kinross Gold Corporation, together with its subsidiaries, engages in mining and processing gold ores. It also involves in the exploration and acquisition of gold bearing properties. The company?s gold production and exploration activities are carried out principally in the Americas, Africa, and the Russian Federation. As of December 31, 2010, its proven and probable mineral reserves were 62.4 million ounces of gold, 90.9 million ounces of silver, and 1.4 billion pounds of copper. The company was founded in 1972 and is based in Toronto, Canada.
Advisors' Opinion:- [By Eric Volkman]
Kinross Gold (NYSE: KGC ) is pulling back a bit on its South American operations. The company announced Monday� that it will not continue to develop its Fruta del Norte project in Ecuador.
- [By Jim Woods]
A day earlier, Kinross Gold (KGC) suspended its semiannual dividend, and it also announced a delay in its decision on future expansion of the mill at the Tasiast mine in Africa. Finally, about a week later, AngloGold Ashanti (AU) — the third-largest producer of the yellow metal — suspended its dividend on poor earnings due to declining gold prices.
10 Best Canadian Stocks To Watch Right Now: United States Steel Corporation(X)
United States Steel Corporation produces and sells steel mill products in North America and Central Europe. It operates in three segments: Flat-rolled Products (Flat-rolled), U. S. Steel Europe (USSE), and Tubular Products (Tubular). The Flat-rolled segment offers slabs, rounds, strip mill plates, sheets, and tin mill products, as well as iron ore and coke. This segment serves service center, conversion, transportation, construction, container, and appliance and electrical markets in North America. The USSE segment offers slabs, sheets, strip mill plates, tin mill products, and spiral welded pipes, as well as heating radiators and refractory ceramic materials. This segment serves the European construction, service center, conversion, container, transportation, and appliance and electrical, as well as and oil, gas, and petrochemical markets. The Tubular segment offers seamless and electric resistance welded steel casing and tubing; and standard, and line pipe and mechanical tubing. It primarily serves customers in the oil, gas, and petrochemical markets. The company also provides transportation services, including railroad and barge operations. In addition, it owns, develops, and manages various real estate assets, which include approximately 200,000 acres of surface rights primarily in Alabama, Illinois, Maryland, Michigan, Minnesota, and Pennsylvania; participates in joint ventures that are developing real estate projects in Alabama, Maryland, and Illinois; and owns approximately 4,000 acres of land in Ontario, Canada. The company was founded in 1901 and is headquartered in Pittsburgh, Pennsylvania.
Advisors' Opinion:- [By Dan Caplinger]
The entire steel industry has experienced sluggish performance in light of the slowdown in China and weak conditions in Europe and elsewhere around the world. Already, we've seen U.S. Steel (NYSE: X ) report much worse-than-expected earnings as well as project further challenges for the industry ahead. Given ArcelorMittal's particularly large exposure to Europe, it stands to lose the most from austerity measures that have brought the European economy to the brink of recession.
- [By Eric Volkman]
For the second quarter in a row, and the fifth over its last seven frames, metallurgy giant U.S. Steel (NYSE: X ) has posted a net loss. The company's Q2 saw it record net sales of $4.4 billion, down from $5.0 billion in the same period the previous year. Net loss was $78 million ($0.54 per diluted share), compared to Q2 2012's profit of $101 million ($0.62).
- [By Ben Levisohn]
Goldman Sachs boosted its rating on US Steel (X) to Buy from Sell, along with that of AK Steel (AKS) and Steel Dynamics (STLD). Axiom Capital Management’s Gordon Johnson responds with a great big “huh?” in regards to the US Steel upgrade, especially as it relates to OCTG–oil country tubular goods.
ReutersHere is what Goldman’s�Sal Tharani and Chelsea Bolton write about US Steel and OCTG:
…we see continued strength in the flat rolled markets in the upcoming seasonally strong steel demand period as another driver of the stock in the near term. By our estimate, closure of three steel plants owned by bankrupt RG Steel, and the permanent shut down of Hamilton plant by US Steel, has more than offset the new capacity additions in the flat rolled market since 2008. As demand improves through continued recovery in auto and industrial markets, and new OCTG capacities under construction in the US begin to ramp up, we see a market improvement in flat rolled steel demand making this market tight in the coming months, from over-supplied just a few months ago.
Now, here’s Johnson’s “huh.” He writes:
Goldman argument ��added OCTG capacity creates OCTG demand: Huh? Again��Huh? This is also among the most confusing/perplexing of the arguments made. One of X�� largest earnings contributors is its OCTG segment. The GS report argues that more OCTG capacity will create more OCTG demand. Huh? Rig counts create demand, not the build-out of OCTG capacity (this makes absolutely NO sense to me ��someone please correct me if I�� wrong here). Further, if more OCTG capacity is built, this is be a negative for X�� most profitable segment. Thus, I don�� see how this is a positive. This is one of the points I just did not get at all.
Any thoughts?
10 Best Canadian Stocks To Watch Right Now: CF Industries Holdings Inc. (CF)
CF Industries Holdings, Inc., through its subsidiary, CF Industries, Inc., manufactures and distributes nitrogen and phosphate fertilizer products, serving agricultural and industrial customers worldwide. It operates in two segments, Nitrogen and Phosphate. The Nitrogen segment principally offers ammonia, granular urea, urea ammonium nitrate solution, urea liquor, diesel exhaust fluid, and aqua ammonia. The Phosphate segment primarily offers diammonium phosphate and monoammonium phosphate. The company also owns 50% interests in the GrowHow UK Limited, a nitrogen products producer in the United Kingdom; Point Lisas Nitrogen Limited, an ammonia producer; and KEYTRADE AG, a global fertilizer trading company. CF Industries Holdings� customers include cooperatives and independent fertilizer distributors primarily in the midwestern United States. The company was founded in 1946 and is headquartered in Deerfield, Illinois.
Advisors' Opinion:- [By Alex Planes]
CF Industries (NYSE: CF ) was the real standout for the S&P 500 today and was the only stock to end up higher by double digits. The diversified fertilizer manufacturer soared 11.8% in the afternoon, after superinvestor Dan Loeb's Third Point Management revealed its stake in a quarterly investor letter. Third Point asserts that CF is cheaper than its peers and could afford to pay out a lot more in dividends. Loeb is right -- just take a look:
- [By Ben Levisohn]
Potash has dropped 1.6% to $31.23 at 12:59 p.m., and its dragging down other potash companies with it. Mosaic has fallen 2.3% to $45.21, Intrepid Potash (IPI) has dipped 0.5% to $15.14 and CF Industries (CF) has declined 1.2% to $204.47. Agrium has buckled the weakness by gaining 0.6% to $82.85.
10 Best Canadian Stocks To Watch Right Now: Everest Re Group Ltd.(RE)
Everest Re Group, Ltd., together with its subsidiaries, underwrites reinsurance and insurance in the United States (the U.S.), Bermuda, and international markets. The company operates in five segments: U.S. Reinsurance, U.S. Insurance, Specialty Underwriting, International, and Bermuda. The U.S. Reinsurance segment writes property and casualty reinsurance, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies within the United States. The U.S. Insurance segment offers property and casualty insurance primarily through general agents, brokers, and surplus lines brokers in the U.S. The Specialty Underwriting segment writes accident and health, marine, aviation, and surety business within the U.S. and worldwide through brokers and directly with ceding companies. The International segment offers non-U.S. property and casualty reinsurance. The Bermuda segment provides reinsurance and insurance to worldwide property and cas ualty markets and reinsurance to life insurers through brokers and directly with ceding companies, as well as offers reinsurance to the United Kingdom and European markets. The company was founded in 1973 and is based in Liberty Corner, New Jersey.
Advisors' Opinion:- [By John Emerson]
Last August, I purchased Everest Re (RE) when it fell within the value parameters outlined in today's article. I wrote an article about the stock titled: Everest Re: Low Risk High Reward http://www.gurufocus.com/news/143388/everest-re-low-risk-high-reward
- [By Marc Bastow]
Reinsurance and insurance underwriters Everest Re Group (RE) raised its dividend 56% to 75 cents per share, payable on Dec. 18 to shareholders of record as of Dec. 4.
RE Dividend Yield: 1.92%
10 Best Canadian Stocks To Watch Right Now: FMC Corporation (FMC)
FMC Corporation, a chemical company, provides solutions, applications, and products for agricultural, consumer, and industrial markets. The company operates in three segments: Agricultural Products, Specialty Chemicals, and Industrial Chemicals. The Agricultural Products segment develops, markets, and sells a portfolio of crop protection, pest control, and lawn and garden products. It produces insecticides, herbicides, and fungicides to protect crops, including cotton, sugarcane, rice, corn, soybeans, cereals, fruits, and vegetables from insects and weed growth; and for non-agricultural applications, including pest control for home, garden, and other specialty markets, as well as for turf and roadside applications. The Specialty Chemicals segment focuses on food ingredients, pharmaceutical excipients, biomedical technologies, and lithium products. It produces microcrystalline cellulose that is used as drug dry tablet binder and disintegrant, and food ingredient; carrageena n, which is used as food ingredient for thickening and stabilizing; encapsulant for pharmaceutical and nutraceutical applications; alginates that are used as food ingredients, and for pharmaceutical excipient, wound care, orthopedic uses, and industrial uses; and lithium that is used in pharmaceuticals, polymers, batteries, greases and lubricants, air conditioning, and other industrial applications. The Industrial Chemicals segment produces inorganic materials, such as soda ash for glass, chemicals, and detergents; specialty peroxygens for pulp and paper, chemical processing, detergents, antimicrobial disinfectants, environmental applications, electronics, and polymers; and zeolites and silicates for detergents, car tires, pulp, and paper. It has operations in North America, Latin America, the Asia Pacific, Europe, the Middle East, and Africa. The company was founded in 1884 and is headquartered in Philadelphia, Pennsylvania.
Advisors' Opinion:- [By Ben Levisohn]
Timing of the transaction completion is mid 2015, following final approval of the BoD, receipt of favorable opinion on tax free status from IRS, shareholder approval, & all regulatory approvals. As a point of interest we have seen several announcements recently where an announcement of the split drives the stocks up 10% and quickly fades as timing sets in and market risk still exists. recent examples [Hertz (HTZ), FMC Corp (FMC), Agilent (A), Noble (NE), CBS (CBS)]. I would expect the stock to fade hard from these levels
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