Posts Tagged ‘Retail Jeweler’
Saturday, August 28th, 2010
U.S. Equity Market Diary (August 30, 2010)
The figure below shows the performance of each sector in the S&P 500 Index for the week. Three sectors gained and seven declined. The best-performing sector was utilities, up 2 percent. Other better-performing sectors included telecom services & energy. The three worst-performing sectors were technology, industrials and consumer discretion.
Within the utilities sector the best-performing stock was NiSource Inc., up 6 percent. Other top performers in the sector were CMS Energy Corp., Ameren Corp., TECO Energy Inc. and PG&E Corp
- The industrial real estate investment trust (REIT) group was the top-performing group, up 8 percent on the strength of its single member, ProLogis. A research report by the owner/developer of industrial warehouse facilities stated that the nation’s distribution property leasing markets were showing signs of recovery at midyear 2010.
- The consumer electronics group outperformed, rising 5 percent, led by its single member, Harman International Industries Inc. The maker of high-quality consumer electronics gear was mentioned favorably in an investment blog.
- The education services group outperformed, advancing 4 percent, led by member Apollo Group Inc. The for-profit education firm published a white paper that provided some incremental data points on its students’ loan default rates.
- The specialty stores group was the worst performer, down 5 percent, led by its largest member, Tiffany & Co. The retail jeweler reported second-quarter earnings above consensus and raised earnings guidance for the fiscal year, but second-quarter revenue was below consensus.
- The investment bank & brokerage group underperformed, falling 5 percent. All four members of the group were down, with Charles Schwab Corp. having the largest percentage decline after a major brokerage firm lowered its rating and target price.
- The coal & consumable fuel group underperformed, losing 5 percent. The price of natural gas, a rival fuel for coal in power plants, declined this week, making it somewhat easier for power companies to switch from coal to natural gas for fuel.
- There may be an opportunity for gain in merger & acquisition transactions in 2010. Corporate liquidity is high, thereby providing the means to pursue acquisitions.
- Should investors’ expectations for an improving economy not come to fruition on a reasonable time frame, it could be a threat to stock prices.
- As governments around the world begin to wind-down the monetary and fiscal stimulus programs put in place during the economic crisis, it will likely present a headwind for stocks.
Tags: Ameren Corp, Apollo Group Inc, Brokerage Group, Charles Schwab, Charles Schwab Corp, Cms Energy Corp, Consumer Electronics Gear, Consumer Electronics Group, Education Services Group, Estate Investment Trust, Harman International Industries, Harman International Industries Inc, Loan Default Rates, Natural Gas, Nisource Inc, Percentage Decline, Quality Consumer Electronics, Retail Jeweler, Target Price, Teco Energy, Teco Energy Inc
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