Morning Coffee with TradingMarkets

  • January 25, 2008
  • David Penn

Good Morning!

Stocks Follow-Through To Upside… Honeywell Announces 18% Profit Growth… Stimulus Package Heads Toward Senate… Caterpillar Beats… Porsche Revenues Up… Soros: Current Financial Crisis Worst in 60 Years… Poll Shows Voters Trust Dems Over GOP To Fight Recession… Harley Davidson’s Q4 Profits Slip…

Asian stocks up… European stocks up… U.S. dollar moved higher against the Euro overnight… And the futures are trending higher in the hour against the bell.

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TradingMarkets 5 Business Stories You Need to Know

Stock Rally Continues Into Friday – The Wall Street Journal

Futures are pointing to another positive open today as signs of panic and capitulation at the Fed, White House and Congress help forge a bottom in the stock market’s current correction.

Caterpillar Beats By a Penny – MarketWatch

International demand drives net income in fourth quarter up 11%.
Caterpilar is a stock that is likely to perform as well as the average stock over the next year. But while Caterpillar belongs to an industry that is likely to outperform, there are a number of stocks in that group that investors should avoid. Find out what thost stocks are at PowerRatings.net.

Honeywell Profit Up 18% – Bloomberg

Demand for security systems, airplane parts helps Honeywell meet analyst expectations for the fourth quarter. Honeywell is an average stock, according to our PowerRatings, in an industry that should be among the best performers going forward. And in that industry group, we’ve found seven stocks that statistically are more likely than Honeywell to be higher one year from now.

Stimulus Package Deal Reached – Bloomberg

$150 billion economic stimulus package to include rebates of up to $600 per person, plus $300 per child. February 15th deadline set to send bill to President’s desk. Republicans concede on extending Bush tax cuts, while Democrats concede on extending unemployment benefits, food stamp assistance.

The Sovereign Wealth Fund Debate – New York Times

Are government-run funds from Asia and the Middle East the perfect antidote for capital-hungry American banks? Or are critics correect in fearing the potential influence of foreign investment on geopolitical issues?

For more stories as they happen, go to our Breaking News section.

TradingMarkets 7 Stocks You Need to Know for Today

Here are 7 stocks for traders for today from TradingMarkets.com:

For a list of today’s highest PowerRating stocks, click here.

TradingMarkets 5 Top PowerRatings Stocks for Today

Company
 Symbol PowerRatings
Hill International HINT 9
UltraShort Financial ProShares SKF 8
OSI Pharmaceuticals OSIP 8
Millenium Pharmaceuticals MLMN 8
Elan ELN 8

View More Stocks

TradingMarkets Tracking the Wizards

Up 1,000% in 07, Already Gaining in 98 – FINalternatives

Lahde Capital’s two Residential Real Estate funds, as well as the company’s Commercial Real Estate and Short Credit Funds are already up in 2007, to the tune of 17%, 23%, 61% and 15%, respectively.

Rogue Traders Causes Biggest Trading Losses in European History – The Wall Street Journal

Huge unauthorized trades for no personal gain? The mystery of Societe General’s rouge trader, Jerome Kerviel continues to puzzle investors and investigators alike as the French bank struggles to assess the total damage.

Fraud Insurance for Hedge Fund Investors? – New York Times

Protean Investment Risks is a new company that offers a different type of hedge for hedge fund investors: insurance against misrepresentation of assets, fraud, or theft.

View Portfolios of Prominent Investors

TradingMarkets Playbook

The follow-though we had been looking for has arrived as the markets moves higher yesterday. A strong close today will do that much more to convince traders and investors that the market’s mood–at least in the short-term–has shifted back toward the positive. The market is now setting up to rally into the FOMC meeting next week, where the Fed funds rate is expected to be lowered by at least 50 basis points.

The Dow, S&P 500, Nasdaq and Russell 2000 still remain below their 200-day moving averages. This means that Larry Connor’s primer, “Five Mistakes to Avoid in a Market Trarding Below Its 200-day Moving Average” (available for free at TradingMarkets.com) remains our best guide going forward: buying strong stocks on pullbacks above the 200-day moving average, and selling weak stocks on bounces below the 200-day moving average.

David Penn is Senior Editor at TradingMarkets.com.

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