It seems the Europeans finally agreed to agree on something with the big news this morning being that they will use their bailout fund to nurse their banks back to health. We like it as it finally puts to use the funds already set aside and does not put anymore pressure upon Germany to bailout the southern states. Asian markets were up big and so too are European markets. It appears that we will have a big day here in the US with futures already up 2%. Going into the weekend this does make us bullish, which is a big move.
We are getting a late start to actually getting this written this morning, due to some computer issues, so we can actually report some economic numbers to readers for once. Personal Spending came in under the consensus with the number being a big 0%. Personal Income rose 0.2% which was above the consensus of 0.1%. The PCE Prices - Core came in at 0.1% which was below the 0.2% consensus number. So nothing to rock the ship, but we still have the Chicago PMI (Consensus 53.0) and the Michigan Sentiment - Final (Consensus 74.1) due out today.
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Looking at Asian markets we see markets are higher:
All Ordinaries - up 1.22%
Shanghai Composite - up 1.35%
Nikkei 225 - up 1.50%
NZSE 50 - down 0.04%
Seoul Composite - up 1.91%
In Europe markets are higher:
CAC 40 - up 3.30%
DAX - up 2.96%
FTSE 100 - up 1.66%
OSE - up 2.07%
Sprint (S) rose $0.13 (4.15%) to close at $3.26/share yesterday on volume of 44.6 million shares. This is a deleveraging play and we think it offers the most upside in the industry. We would really like to see the company carry the iPad, as the unlimited data plans would be excellent recruiting tools for those devices. The competition among its competitors for pricing data plans is a joke and we think that Sprint has an opportunity to really gain traction offering unlimited 4G service. It will be something to watch moving forward, and we think that the next generation iPad will be sold via Sprint too.
Arena Pharmaceuticals (ARNA) fell $1.16 (10.18%) to close at $10.23/share on volume of 53 million shares. The volume here remains strong, and it is clear now that most of the gains were had prior to the FDA approval. It appears now that traders are moving into the other players trying to get drugs approved by the FDA and rotating out of Arena. With the approval in hand, we would be buyers of Arena on any serious pullbacks for long-term investing.
Anthera Pharmaceuticals (ANTH) closed just above the day's low yesterday as shares fell $1.9435 (70.67%) to close at $0.8065/share. Volume was 19.2 million shares as investors fled following the company's news that the lupus drug that was in clinical trials failed to meet the goals the company had for it. This is the second failure for the company and sadly for shareholders this was an $8/share stock earlier this year.
Best Buy (BBY) has been beaten down over the past few months with bad news all the way down. Yesterday the stock turned in a solid day rising $1.08 (5.45%) to close at $20.88/share on volume of 14.5 million shares. Looking ahead it will be interesting to see if the shares can move through the $22/share level as that appears to be the next bit of resistance the shares might find, but the $25/share level is where the real showdown will take place. This is one we will stay away from, for as we have said before we think the customer service is awful at their stores and the product offering seems to get smaller and smaller (and oddly enough that does not translate into them having what you want in stock either).
Regions Financial (RF) is creeping back up into the level where we last recommended buying shares. We still believe that investors should be invested in the regional banks rather than the national banks, as has been our belief for months now. With volume of 26.9 million shares traded yesterday the shares rose $0.13 (2.03%) to close at $6.54/share. Regions will test the 52-week high before the year is over and we think that it actually sets new highs, possibly around the $8/share level. We see earnings increasing and losses from bad loans decreasing further with the economy picking up in the states that Regions operates in. If that trifecta holds, then shareholders will once again come out on top here.