Month: July 2012

In trading on Wednesday, airlines shares were relative leaders, up on the day by about 2.1%. Leading the group were shares of Skywest (SKYW), up about 14.1% and shares of Allegiant Travel (ALGT) up about 5.1% on the day.

The Daily Ticker’s Aaron Task talks to Josh Brown about Apple’s mega-lineup of products.

Voxx International (VOXX), a maker of audio equipment, announced that it lost $4.7 million, or 20 cents per share, during the first quarter, versus a profit of $2.5 million, or 11 cents per share, in the same period last year. Earnings were hurt by a patent settlement charge, and costs related to the acquisition of car-audio maker Hirschmann.

It’s July, which means that the Volcker Rule should be going into effect. Proposed by former FEDERAL RESERVE CHAIRMAIN, Paul Volcker, the Volcker rule is an addendum to the DODD-FRANK WALL ST REFORM AND CONSUMER PROTECTION ACT aimed to regulate how big banks use money their customers have invested. Endorsed by Obama in January 2010, the ban on proprietary trading, would prevent banks from using deposits to trade on their own accounts. This is not how it’s been happening, and Volcker sites that such speculative activity played a key role in the financial crisis of 2007-2010. As it applies to the Libor scandal, we are seeing new evidence surface in the form of emails from traders asking banks to LOWER their lending rates, not raise them. According to CNN MONEY, this is pandemic, and speaks to the rotten core of our Wall Street woes. Too much emphasis might be placed on the profits banks turn from trading, rather than from lending. It’s a matter of what it means to be the best bank out there: is it the most profitable bank? or the institution that works hardest for their consumer base? While both are optimal for a top financial firm, we haven’t been seeing much balance in their behavior. Hopefully, when July 21 rolls around, balance will start to be maintained. But there are already dozens of exceptions to this new regulation, and once it is imposed, even more will surface. It’s not the end of market manipulation, but its a step in the right direction.

Intel (NYSE:INTC) making a big bet this morning to potentially speed up chip production and promote growth. The world’s largest semiconductor maker announced it agreed to invest as much as $4.1 billion in Dutch chip-equipment maker ASML holding. The investment will potentially shave off two years of development on an advanced chipmaking technique known as extreme ultraviolet lithography. The technique is costly and is used to make semiconductors more powerful even as they become tinier. Intel will also be helping ASML transition to a new chipmaking standard that relies on 450-millimeter disks of silicon which will allow manufacturers to produce more chips faster.These two advances toward the next-generation semiconductor will potentially bring faster growth to both Intel and ASML. Under the terms of the deal Intel will invest $1 billion in research into the two technologies and use the other $3.1 billion to acquire an initial 10% stake in ASML. Potentially, Intel will acquire an additional 5% once shareholders approve of the deal.ASML is skyrocketing on the news of the deal, up close to 10% in New York trading. Intel is fairly well too, up almost 1%.

The giant Moody’s Cut has created ripples around the financial world. The increasing debt issues coming out of Europe took the stage during Moody’s evaluations, and as a result, the Euro has lost some strength, again. In fact, it has fallen the most in months, trading now at 1 euro to 1.256 dollars. With a 1.3 percent drop, The Euro wasn’t the only hit this morning . The yen dropped .9 percent to 80.42 yen per dollar, an unexpected turn for Japanese Financiers.

T. Rowe Price (TROW) was upgraded today by Bank of America/Merrill Lynch to buy with a $24 price target due to the outperformance of the company’s funds versus the broad market.

Optimism over the German court hearing on the euro bailout was overshadowed by a disappointing outlook from the US technology sector, as the markets added to their losses in the afternoon. In economic news, the National Federation of Independent Business is reporting a sharp decline in small business optimism in June.

Eurozone leader concluded the summit on Jun 29th with 3 main agreements. First, they are making the initial step towards a banking union. They plan to create a single supervisory mechanism for banks in the Eurozone by the end of this year and it will involve the ECB. The European Stability Mechanism could then have the capability to recapitalize banks directly. Second, they are allowing the European Financial Stability Mechanism to inject capital directly into Spanish banks without gaining the preferred creditor status. This means the Spanish government will not be overloaded with pressure that came with the rescue package. Third, the leaders confirmed the commitment to use European Financial Stability Mechanism instruments to purchase government securities to stabilize the market. Euro rebounded above 1.26 against the dollar, Euro Stoxx up 4.96%, DAX up 4.33%, giving the rest of the world a break heading into the week of July 4th.

Boeing (BA) has completed assembly of an American Airlines Next-Generation 737-800 to be used as a flying testbed for validating environmentally progressive technologies. The airplane, known as the ecoDemonstrator, is being outfitted with the advanced technologies and test equipment before it begins a month of intense flight testing in Montana.