Entering text into the input field will update the search result below


Jan. 27, 2014 3:29 PM ETCAT1 Comment
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Long/Short Equity, Portfolio Strategy

Seeking Alpha Analyst Since 2008

Wall Street Strategies has been providing independent stock market research since 1991 to individual, retail and institutional clients through a balanced approach to investing and trading. Charles Payne, our founder and chief analyst, is routinely sought after for his stock market, political, and general opinions by several prestigious news organizations. Currently, Mr. Payne is a contributor to the Fox News Network and Fox Business Network. He also hosts his own radio show on KFIAM 640 every Saturday from 2-4pm PST. Mr. Payne recently released his first book entitled Be Smart Act Fast Get Rich. Our all-star analytical team is called first when the media needs to know. We are regularly featured on several well respected finance-oriented radio and television programs such as Fox, CNBC, BNN, WSJ to name a few and widely recognized in the media as a leaders in the analyst community. In addition, Wall Street Strategies is part of Factset, Jaywalk, and Thomson-Reuters Consensus Estimates. Meet our analysts: Brian Sozzi is an equity research analyst specializing in the softline/hardline goods sectors of the retail industry for Wall Street Strategies Inc. Mr. Sozzi graduated Summa Cum Laude from Dowling College, receiving his Bachelors of Business Administration with a concentration in Finance and Accounting. Routinely sought after as a trusted point of reference for opinions and insight on the global economy and retail sector stock evaluation, Mr. Sozzi is a frequent on air contributor to CNBC, Fox Business Network, and Bloomberg, and is cited regularly by online/print publications that include Forbes, Bloomberg, The Wall Street Journal, Thestreet.com, CBS Marketwatch, Reuters, Seekingalpha, Associated Press, Crain’s NY Business, Fortune, Barron’s, AOL Finance, and the Financial Times. In 2009, Mr. Sozzi became recognized by Starmine as a top-ranked equity research analyst for stocks under coverage in such categories as EPS Estimate Accuracy and Industry Excess Return. David Silver is a Research Analyst for Wall Street Strategies. He is a graduate of Tulane University’s A.B. Freeman School of Business where he received his Bachelor of Science in Management with a dual degree in Finance and Accounting. David actively covers companies in the Transports, Autos, and Beverage sectors. He is routinely invited to appear on business oriented television and radio shows including CNBC, Fox News, Fox Business News, the Business News Network of Canada, WCBS Radio, and the Wall Street Journal Radio. In addition, David has been quoted in major business publications such as the Wall Street Journal, Forbes, Marketwatch, CNN Money, and Autoweek. David Urani is a research analyst with concentrations on the homebuilding, staffing, medical devices, and logistical services industries. Along with providing institutional clients with up-to-date reports of individual stocks within his industry coverage, David assists the rest of the Wall Street Strategies research desk with timely analysis of vital economic data. A graduate of the A.B. Freeman School of Business at Tulane University, David earned a Bachelor of Science in Management while majoring in finance. With prior training experience running small businesses, he has an eye for key fundamentals that keep Companies running efficiently. David’s insight has been featured in several outside sources, including the Fox Business Network, MarketWatch, and SeekingAlpha. Carlos Guillen is an Equity Research Analyst providing coverage of the technology sector for Wall Street Strategies, Inc. Mr. Guillen has had experience working in both the sell side and the buy side. Prior to working as an analyst, he was a Design Engineer for Lambda Electronics. Mr. Guillen holds an M.B.A. from NYU’s Stern School of Business, and he has a B.S. in Electrical Engineering from Manhattan College. Conley Tuner is a Research Analyst with Wall Street Strategies Inc. He is a frequent contributor to a number of media outlets including MarketWatch, Bloomberg, BBC news and Xinhua news. Conley holds a Masters in Business Administration and a Masters in International Affairs from the George Washington University. Jennifer N. Coombs is an Equity Research Analyst at Wall Street Strategies. She previously worked on the buy side as an Associate Equity Research Analyst covering the transportation subsector of the industrials sector at AIG SunAmerica Asset Management Corporation. Jennifer also covered Real Estate Investment Trusts (REITs) and has done broader research for the industrials, financials and consumer sectors. Prior to joining their research department, Jennifer worked as a Trading Assistant for SunAmerica’s index funds. She also worked briefly in the client portfolio management department at Dwight Asset Management Company – a fixed income subsidiary of Goldman Sachs. Jennifer graduated with distinction from Clarkson University where she earned a B.S. in Financial Information Analysis and Political Science, with minors in Economics and Law. Jennifer specialized in international markets, and briefly studied East Asian Economics at Sungkyunkwan University in Seoul, South Korea. Jennifer is currently a member of the New York Society of Security Analysts (NYSSA).

By Carlos Guillen

Equity markets attempted this morning to recover some of the massive losses from the prior week but, unfortunately, are headed south once again. Better than expected results from Caterpillar Inc. (CAT) served to enthuse investors early in the session, but that was short lived, as worse than expected housing data did not serve to give markets the support they so desperately needed today.

Before the opening bell, there were strong signs of a bounce in stocks as upbeat results from Caterpillar lifted Dow futures. The company delivered fourth quarter earnings per share of $1.54, which were $0.26 above the Street's consensus estimate. And while revenues of $14.4 billion did decline on a year-over-year basis, they were still better than the Street's consensus calling for $13.6 billion. More encouraging, however, was the guidance for the full year; the company said it sees earnings per share of $5.85, above the Street's consensus $5.80, and revenues are forecasted to be in the range of $53.2-58.8 billion, which have a midpoint of $56.0 billion, higher than the Street's expectation of $55.18 billion. As we know, Caterpillar is viewed by many as an economic bellwether for global activity, so these better than expected forecasts served to offset some of the malaise from the prior week.

But around 10 a.m. investors got a glimpse at housing data, which was not very inspiring to put it mildly. As it stands, sales of new single-family homes fell in December by 7 percent mostly as a result of harsh winter weather. On a positive note, however, a bird's eye view of 2013 in its entirety showed that new home sales reached its highest sales level in five years; more on this below.

Making things worse for equities today was resurging chatter about emerging market weakness, particularly from Latin America. Later this week, investors will be focusing on the Fed as it is scheduled to meet and give its target rate directive. As we recall, investors had been spooked by Fed tapering actions, and expectations at the moment are for another round of tapering to the tune $10 billion, bringing asset purchases down to $65 billion per month.

After the close of today's session, Apple will report financial results for its most recently completed quarter, and given its massive market cap, it is sure to shake markets tomorrow, let's sit tight as it is likely to continue being a rough trading week.

New Home Sales Freeze Up
By David Urani

The Census Bureau reported its December new home sales result and it came in at an annual rate of 414k for the month, well below the 450k consensus and the revised 445k (revised down from 464k) November result. That's a 7% month to month decline, and the second drop in succession. Decreases in the Northeast, South and West offset a gain in the Midwest. Inventory also came down, by 3% for the month and is down 5.5% since September.

That said, I don't want to sugar coat it too much but the new home sales report tends to be a volatile data set to begin with, especially during the winter months when seasonal adjustments can skew the results. That goes double this year, which of course has been unusually cold, and cycles over an unusually warm 2012. Take for instance the Northeast, which showed a 36% month to month decline; the result was surely impacted by the freezing conditions in the region, exacerbated by seasonal adjustments.

In the end the result was weak, and there's not much to be taken positively from it, even if it's a little dubious due to the weather. Likewise, homebuilder stocks held up initially but have turned decisively south. The Dow Jones US Home Construction Index, which tracks related stocks, is down more than 1% on the day.

The data is worth being cautious over, but I'd like to see a couple more months (note: January has also been quite cold) to get a trend, especially as it warms up into the spring selling season.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.