CME Raised (Again) Margins on Gold and Silver Contracts– September 24

Following the sharp falls in the precious metals prices, there was another news
item that helped gold and silver prices to fall the flight of stairs: the CME
(Chicago Mercantile Exchange) announced it will raise margins on gold and silver
contracts again. The CME (Chicago Mercantile Exchange), the world's largest
future market, announced it will raise the maintenance

Gold and Silver Plummeted | CME Margin Hike Fueled Drop –September 23

Gold and silver prices closed the week with very dramatic falls; the recent
announcement by CME of a raise in margins requirements for gold and silver
trading didnt help precious metals traders. Gold and silver prices suffered the
sharpest single day drop since 1983 (according to Bloomberg). Crude oil prices
slightly declined yesterday; natural gas prices (Henry Hub) had a mixed trend.
Here is a summary of the price movements of precious metals and energy
commodities for September 23rd: Precious Metals prices: Gold price sharply
plummeted yesterday by 5.85% to $1,639; it fell back to its price level from
August 1st; Silver price also plummeted by 17.71% to $30.10 – the lowest price
level since February 11th, 2011. During September, gold prices decreased by
10.5% and silver price lost 27.9% of its value. The EURO to US Dollar exchange
rate bounced back yesterday and slightly inclined by 0.27% to 1.3501 i.e. the
USD depreciated against the EURO. The USD also depreciated yesterday against
other currencies including the AUD and CAD. During September, the EURO to US
Dollar declined by 6.04%. Oil and Gas prices: WTI spot oil price slightly
declined yesterday by 0.85% to $79.58 per barrel; Brent oil

3 Stocks Ripe for Lower Profit Estimates

Stocks are in full retreat mode again. Since the Federal Reserve announced
Operation Twist, the Dow has dropped by more than 600 points. Hardly a ringing
endorsement of current policy, investors are firmly convinced that the economy
spiraling downward. Thursdays earnings report from FedEx (NYSE: FDX ) is not
helping matters. The overnight shipping company beat analyst estimates for the
quarter by a penny per share but reduced guidance for the full year. Confirming
suspicions of a slower economy, FedEx now expects full-year profits to range
from $6.25 to $6.75 per share. The previous estimate for the year was $6.35 to
$6.85 per share. That slight reduction was all it took for the bears to pounce.
FedEx shares fell 10% during the trading day after the news was released. But
are there other stocks in the market set up for a similar profit reduction and
subsequent declines in stock value? I would think so. FedEx is a leading
indicator. To the extent shipping slows, profits for a broad spectrum of
companies could be at risk. It would be prudent but painful in the short term
for management to lower profit forecasts. Here are three companies that could
get hit hard by weaker outlooks: DuPont Not only is the economy slowing, but oil
prices have held relatively firm during this recent bout of selling in the
market. Oil is a key ingredient in many of the products made by DuPont (NYSE: DD
). Without the ability to pass along higher prices to consumers, profit margins
are likely to shrink. In the most recent quarter, DuPont beat analyst
expectations. That performance might lull investors to sleep for the coming
reduction in profit forecast. Wall Street has increased the average estimate for
the current quarter and fiscal year during the past 90 days. For the full year,
the average Wall Street estimate is for DuPont to make $3.99 per share. If
DuPont reduces guidance, that average estimate could drop by 5% or more. A
single-digit multiple of earnings would be appropriate. At nine times the
current estimate, the price of DuPont would be $35 per share. With the stock
trading for $41.27 per share, there is plenty of downside risk on DuPont.
Lockheed Martin The budget battle is in full gear. Headlines about spending cuts
only going to increase as the November super-committee deadline draws near. At
risk are defense spending dollars that flow directly to some of the largest
stocks in the market. Lockheed Martin (NYSE: LMT ) is front and center for the
battle. While the company is ramping up lobbying efforts to defend spending, the
reality of the economy and budget deficit suggest those efforts will fail. It is
reasonable to assume that the higher likelihood of budget cuts will result in
Lockheed ratcheting down profit expectations. As it stands, the average Wall
Street estimate for the current year is $7.51 per share. With the company having
made $7.34 per share in 2010, growth for the year is an anemic 2%. Shares trade
for 10 times current estimates. Any reduction in earnings is likely to be
greeted by a significant selloff in share price. Norfolk Southern After the
FedEx report, alarm bells should be ringing for any stock related to
transportation. Fewer goods and services shipped mean lower profits across the
board in the sector. Ripe for a reduction in profit guidance, then, is train
company Norfolk Southern (NYSE: NSC ). So far, losses have been modest thanks to
current operating performance that has exceeded Wall Street forecasts. If we are
indeed at a tipping point, investors might not be able to rely on such stellar
results in the future. For the current year, the average Wall Street estimate is
$5.14 per share. Last year, Norfolk Southern made a profit of $4 per share. The
current estimate for 2011 represents a 28% improvement in profits. The challenge
will be in 2012. For now, the 2012 Wall Street profit estimate is for the
company to make $5.85 per share or 14% higher than 2011 expectations. With
shares trading for 12 times current-year estimates, shares are appropriately
priced. A reduction in 2011 numbers likely will push the 2012 estimates lower,
too. Should expectations slip to single-digit profit growth, look for shares to
sell off accordingly.

Todays gold price per ounce spot Gold prices per gram; Spot silver price per ounce; Gold and Silver Price Drops Today

Gold and silver contract prices finished off in the red once again during the
last trading session. Stocks fell off during the majority of the week and
commodities like gold and silver precious metals followed. Trends in the U.S.
market place moved decisively lower throughout the week. The primary onset for
the stock sell-off initiated mid-week after the Feds announced that another QE3
would not be forthcoming. The news had global ramifications that were broad in
stroke. Stocks ended on the negative side of break-even for the week, as did
precious metals gold and silver. Contract gold for December delivery moved lower
by 5.85 percent to close out the last session at 1639.80 per troy ounce. Silver
contract for December delivery closed out the last trading session lower by
17.71 percent at 30.10 per troy ounce. The one month change for gold and silver
continues to drop more negative. Golds current one month change status is
negative by 10.18 percent. Silvers one month change status is negative by 26.62
per troy ounce. After last session close, spot gold price per gram and spot
silver price per ounce continued to move into negative territory. Spot gold
price per gram was lower by 2.68 at 53.24 and spot silver price per ounce was
lower by 5.44 at 31.09. Despite the negatively skewed economic news that has
been transpiring on a global scale, golds safe haven appeal has attracted little
attention. The drop in price for Gold last session was greater than any seen in
decades. The economic uncertainty is not enough to stall the precious metal
price correction. Camillo Zucari

Todays DJIA Dow JOnes Index DJX DJI, Nasdaq, S&P 500 Stock Market Investing News Today

XCSFDHG46767FHJHJF

dow2664 The primary stock indices struggled to right themselves during the last trading session of the week. Significant stock sell-offs occurred during mid-week and indices plummeted on Thursday. Trends attempted to rebound on Friday. Futures indicated the higher open yesterday and by the mid-day mark in the trading session, the three primary indices in the U.S. were posting green. The Dow Jones , Nasdaq and S&P 500 were just above break-even at this point. Commodities continued to trend back and the dollar lost strength to the euro and British pound as well. Global market trends added some negative weight to the trading session though. Primary indicators in Europe and Asia closed out red. The Shanghai Composite, Hang Seng and Nikkei closed out below break-even in Asia and European stocks finished weaker as well. Stocks in the U.S. were able to stay afloat however. The primary indices managed to close green. The Dow Jones Industrial Average finished green by .35 percent at 10,771.48. The Nasdaq finished higher by 1.12 percent at 2,483.23 and the S&P 500 finished out higher by .621 percent at 1,136.43. The dollar dropped lower to the euro and the British pound. Gold and silver contracts finished lower. The week ended negative overall for stocks in the U.S. The Dow Jones Industrial Average closed out lower by 6.4 percent for the week. The Nasdaq finished out the week lower by 5.6 percent. The S&P 500 finished off the week lower by 6.5 percent overall. Frank Matto

Todays DJIA Dow JOnes Index DJX DJI, Nasdaq, S&P 500 Stock Market Investing News Today

The primary stock indices struggled to right themselves during the last trading
session of the week. Significant stock sell-offs occurred during mid-week and
indices plummeted on Thursday. Trends attempted to rebound on Friday. Futures
indicated the higher open yesterday and by the mid-day mark in the trading
session, the three primary indices in the U.S. were posting green. The Dow
Jones, Nasdaq and S&P 500 were just above break-even at this point. Commodities
continued to trend back and the dollar lost strength to the euro and British
pound as well. Global market trends added some negative weight to the trading
session though. Primary indicators in Europe and Asia closed out red. The
Shanghai Composite, Hang Seng and Nikkei closed out below break-even in Asia and
European stocks finished weaker as well. Stocks in the U.S. were able to stay
afloat however. The primary indices managed to close green. The Dow Jones
Industrial Average finished green by .35 percent at 10,771.48. The Nasdaq
finished higher by 1.12 percent at 2,483.23 and the S&P 500 finished out higher
by .621 percent at 1,136.43. The dollar dropped lower to the euro and the
British pound. Gold and silver contracts finished lower. The week ended negative
overall for stocks in the U.S. The Dow Jones Industrial Average closed out lower
by 6.4 percent for the week. The Nasdaq finished out the week lower by 5.6
percent. The S&P 500 finished off the week lower by 6.5 percent overall. Frank
Matto

Tech’s Outperformance Driven by the Big Boys

Quick what's the one stock you feel comfortable owning right now? If you
said Apple (NASDAQ: AAPL ), you're not alone. Among large-cap stocks, there
aren't many that offer the combination of Apple's massive balance sheet,
strong organic growth and promise of future catalysts in the form of hot new
products in the pipeline. It's no surprise, then, that the stock has
outperformed both the S&P 500 and the broader tech sector since the market
started going south at the beginning of May. While Apple garners all the
headlines, it isn't the only tech stock to outshine its large-cap peers in
recent months. A look at the numbers shows meaningful outperformance for seven
of the eight largest tech stocks since the April 29 top: Looking at this, one
would think that the tech sector as a whole has been a safe haven through the
market downturn. In fact, that's been anything but the case. Beneath the $50
billion market-cap cut-off, the numbers are not nearly as positive. In fact, 14
out of the next 20 largest U.S.-domiciled tech stocks have failed to keep up
with the S&P 500 since the market started to roll over. Granted, some of these
companies are stock-specific stories that would have underperformed in any
market. Hewlett-Packard (NYSE: HPQ ), Research In Motion (NASDAQ: RIMM ) and
Yahoo (NASDAQ: YHOO ) are names that jump out from the list. Still, the table
below shows that it isn't necessarily accurate to talk about "technology's
outperformance." So what's driving the outperformance of the largest tech
stocks? The simple answer is, of course, fundamentals. In terms of their
earnings, balance sheets and market positions, these companies are much better
equipped to deal with macroeconomic headwinds than most stocks in the financial
or cyclical sectors. How long stocks like Apple, Amazon (NASDAQ: AMZN ), and
Google (NASDAQ: GOOG ) remain immune to a slowing economy is up for debate, but
for now it has paid handsomely to stick with what's working. There's more to
this story than just fundamentals, however. If an equity-only fund manager needs
a hiding place, he or she doesn't have the option to buy gold or Treasuries.
The logical safe haven is large-cap, cash-rich companies with stories that have
a demonstrated ability to keep growing despite the slow economy. More to the
point, there's no "career risk" to holding Apple in your portfolio right
now. In short, these stocks have become a safe haven for dedicated-equity
managers that have nowhere else to hide. The result is that the large-cap tech
trade has become very crowded. In the short term, that doesn't matter as long
as the markets remain weak, this trade can keep working. But once the market
stabilizes and managers move back to the "risk-on" trade, these
outperforming stocks likely will represent a source of funds. The bottom line:
Ride this wave of remarkable outperformance for the largest tech stocks as far
as it will go. But recognize it for what it is, and be ready to look elsewhere
for opportunities once the VIX makes it back to the mid-20s.