• OPEC production fell 411,000 barrels per day to 29,343 million bpd.
• Libya's production fell 343,000 barrels per day, from 1,396,000 bpd.
• Nigeria fell 107,000 barrels per day due to Royal Dutch (RDS) Oil maintenance.

Continue reading Brent Crude Oil Explodes to $120 Per Barrel

Brent Crude Oil Explodes to $120 Per Barrel originally appeared on BloggingStocks on Mon, 04 Apr 2011 15:00:00 EST. Please see our terms for use of feeds.

Continue reading Gold and Silver Hit New Highs

Gold and Silver Hit New Highs originally appeared on BloggingStocks on Fri, 01 Apr 2011 11:40:00 EST. Please see our terms for use of feeds.

Here it is in a nutshell: Prices of grains and cotton have skyrocketed year to date. The United States Department of Agriculture's (USDA) report released Thursday stated that corn and wheat prices have doubled in the past year. Soybeans were up 50% and cotton was up 155%, as reported in the Wall Street Journal.

What has caused these sharp increases? The key mover has been exports. China, India and countries in the Mideast are stockpiling grains over fears that they will not have enough to feed their people. Corn in storage fell 15% on March 1. Corn has been hit doubly hard because 40% of it is used for ethanol production and a large amount goes for livestock feed.

Continue reading USDA's Crop Report Signals Higher Food Prices

USDA's Crop Report Signals Higher Food Prices originally appeared on BloggingStocks on Fri, 01 Apr 2011 10:00:00 EST. Please see our terms for use of feeds.

Continue reading U.S. Stock Futures Gain as Investors Await Economic Data

U.S. Stock Futures Gain as Investors Await Economic Data originally appeared on BloggingStocks on Thu, 17 Mar 2011 08:35:00 EST. Please see our terms for use of feeds.

When it comes to the biggest threat to world economies, oil scarcity is second only to nuclear war. What started in Tunisia, then spread to Egypt has now spreading to Bahrain and Iran, where protesters are clashing with police. In Iran, lawmakers are threatening death to protesters.

The fear of chaos spreading across the Middle East has sent the oil market into overdrive. Brent crude traded at $104 per barrel Tuesday.

Continue reading Brent Crude at $104 per Barrel on Spreading Mideast Unrest

Brent Crude at $104 per Barrel on Spreading Mideast Unrest originally appeared on BloggingStocks on Tue, 15 Feb 2011 11:00:00 EST. Please see our terms for use of feeds.

Continue reading What to Do About the Collapsed Debt Market?

What to Do About the Collapsed Debt Market? originally appeared on BloggingStocks on Thu, 01 Jul 2010 16:00:00 EST. Please see our terms for use of feeds.

Continue reading Before the bell: Investors bullish ahead of new reports

Before the bell: Investors bullish ahead of new reports originally appeared on BloggingStocks on Mon, 28 Sep 2009 07:30:00 EST. Please see our terms for use of feeds.

Continue reading The G-20 meets in Pittsburgh, and expectations are low

The G-20 meets in Pittsburgh, and expectations are low originally appeared on BloggingStocks on Thu, 24 Sep 2009 16:40:00 EST. Please see our terms for use of feeds.

Continue reading No trading today, but plenty of news

No trading today, but plenty of news originally appeared on BloggingStocks on Mon, 25 May 2009 14:15:00 EST. Please see our terms for use of feeds.

Would you believe that oil imports actually rose last month? The increase also caused an increase in the U.S. Trade Deficit to $57.2 billion dollars. Contrary to what you might expect, the US bought more oil last month than the month before. Yes, you heard it right. And people who started using public transportation when the price of gas was about $4.00 per gallon continued to use public transportation to date. It seems that our large refiners were able to sniff out that a cut in Saudi production was coming so they loaded up on inventory to beat the production cuts.

Supposedly the cuts were made. Yet there are some analysts who believe that the Saudi's did not, in fact, cut production and continued to produce the oil at the same levels. There are also those who beleive that even with production cuts by OPEC that they will not be enough to drive up the price of crude oil much higher. In fact some are even predicting that the price of gas will fall to $1.25 per gallon by next spring.

OPEC meets next week. It will be interesting to see exactly what their cuts will be and what effect these cuts will have on the price of crude oil.

Record increase in oil imports originally appeared on BloggingStocks on Fri, 12 Dec 2008 15:20:00 EST. Please see our terms for use of feeds.

• The Dow Jones Euro Stoxx 50 Pr: at 3,132.37, down 83.87 (-2.61%)
• The FTSE 100 Index: at 5,173.10, down 127.30 (-2.40%)
• The DAX 30: at 6,049.42, down 150.83 (-2.43%)
• The S&P/MIB Index: at 27,059.00, down 689.00 (-2.48%)

• Nikkei 225 Average: closed at 12,754.56, down 255.60 (-1.96%)
  
• The S&P/ASX 200 Index: closed at 4,815.70, down 105.30 (-2.14%)
  
• Hang Seng Index: closed at 21,174.77, down 839.69 (-3.81%)

Foreign markets roundup: Global markets unilaterally drop originally appeared on BloggingStocks on Tue, 15 Jul 2008 08:30:00 EST. Please see our terms for use of feeds.

Continue reading What Jerome Kerviel demonstrated, MIT proves

What Jerome Kerviel demonstrated, MIT proves originally appeared on BloggingStocks on Thu, 31 Jan 2008 10:58:00 EST. Please see our terms for use of feeds.

To say the least, this has been one interesting and turbulent week for the stock market. We saw international markets crash for two days, severe down action, a three-quarter point emergency interest rate cut by the Fed, a $7 billion mistake in France and work on a rebate package in Congress.

It can be a little hard to understand international markets and how they all work. But allow me to use an analogy to explain their interaction.

We all grew up in a family, and one of the most important people in the family is Mom. Mom does a lot of work -- making meals, doing laundry, cleaning the house and even working outside of the house. Families can have very complicated interpersonal dynamics in them. There is a saying that "if Mama ain't happy ... nobody's happy." And I think there is some major truth to it.

But it applies to international markets as well. The U.S. market is the "mama" and the most important player. The $13 trillion U.S. economy is bigger, stronger and more dynamic than each of the other markets, and if it has troubles, other markets have troubles as well.

Continue reading If Mama ain't happy: Understanding the global market meltdown

If Mama ain't happy: Understanding the global market meltdown originally appeared on BloggingStocks on Fri, 25 Jan 2008 16:10:00 EST. Please see our terms for use of feeds.

While the euro has risen by as much as 40% against the dollar since 2002, emerging market currencies have only seen gains of 17%.

The FT says, "Fear is part of the answer. Investors haven't forgotten the emerging market currency devaluations of the 1990s and early 2000s. For them it's 'no thanks, too risky.'"

Investors already hold emerging market equities in their portfolios, and according to the FT, investors might feel that these equity positions suffice for currency exposure.

Continue reading Opportunity to take advantage of currency fluctuations?

Opportunity to take advantage of currency fluctuations? originally appeared on BloggingStocks on Wed, 09 Jan 2008 08:25:00 EST. Please see our terms for use of feeds.

I have been wondering lately if the sagging value of the dollar is actually going down through economic gyrations or being pushed down by design.

There are many repercussions. No one less than Rodrigo Rato, head of the International Monetary Fund, warned Monday of a potential "abrupt fall" in the US dollar that could roil the global economy. "There are risks that an abrupt fall in the dollar could either be triggered by, or itself trigger, a loss of confidence in dollar assets," Rato said at the close of annual meetings here of the IMF and the World Bank, according to news reports.

Here is what is really on his mind: Europe may take steps to temper the strong appreciation of the Euro, which is weighing on exports from the 13-nation bloc. "There is a risk that exchange rate appreciation in countries with flexible exchange rates -- including the Euro area -- could hurt their growth prospects, and that in these circumstances protectionist pressures could worsen," he said.

From my perspective I have wondered if the Bush administration is at least applauding the weak dollar as it improves U.S. trade imbalances, helps prop up the stock market and worried investment bankers, and strengthens American companies in many regards.

Continue reading Bush administration pushing dollar down or allowing it to fall? IMF chief sounds alarm

Bush administration pushing dollar down or allowing it to fall? IMF chief sounds alarm originally appeared on BloggingStocks on Wed, 24 Oct 2007 16:45:00 EST. Please see our terms for use of feeds.

Multi-purpose lubricant, cleaning, and consumer products company WD-40 (NASDAQ: WDFC) is posting such good earnings that CEO Garry Ridge recently announced the company has revised FY guidance upwards. Net sales are predicted to grow 7-9% to $307-$313 million. FY EPS are predicted to be $1.70-$1.75 with net income of $29-$30 million. Ridge maintains these are viable numbers despite the capital expenditures necessary for WD-40 to open a direct sales operation in China by late 2007. WD-40 has posted these numbers despite increases in the cost of goods due to increases in the cost of raw materials, and a 10% increase in administrative expenses in 3Q 2007. Advertising and sales expenses are also on the increase by 12% as WD-40 moves into new markets outside the U.S.

WD-40 has no choice but to seek new international markets. Sales in Europe are up 23% in 3Q 2007 and up 17% in Asia/Pacific, not yet including China. These double-digit increases make up for the fact that sales in North America are down 2.5% in 3Q 2007. This decline is caused primarily by a 15% drop in sales of household products, which makes very little sense considering the company's flagship product, WD-40, posted a sales increase of just under 16%, and hand-cleaning products posted an impressive 12% increase. WD-40 makes well-known and widely respected cleaning products such as X-14 for cleaning soap scum and Carpet Fresh for removing spots in carpet. Granted, these products are a bit more expensive than competing brands, but these products unarguably work well and are found in the cleaning cabinets of many U.S. homes. After getting its China facility up and running full speed, perhaps WD-40 needs to turn its attention to convincing American consumers of the value of WD-40 products, not just their price.

Overall, 3Q net sales were up 6.2% and up 8.1% for 1Q-3Q 2007 inclusive. In addition to raising FY guidance, the company announced a $0.25 per share dividend.

WD-40 (WDFC) updates FY guidance originally appeared on BloggingStocks on Sat, 25 Aug 2007 15:10:00 EST. Please see our terms for use of feeds.

Contrary to expectations, the dollar has staged a strong rally in recent days. If history is any guide, a rising greenback will also have implications for U.S. share prices.

According to Bloomberg, the recent uptick has been spurred by "a worldwide rush for dollars as banks and fund managers scramble to pay back loans used to buy risky mortgage securities." Short-covering by bearish speculators has added further fuel to the fire.

Given the impact that currency moves can have on cross-border investment flows and the bottom lines of publicly-listed U.S. companies, many of which have significant exposure to export markets, it makes sense to try and figure out which sectors may benefit from further dollar appreciation and which may lose out.

Continue reading The dollar and relative sector performance

The dollar and relative sector performance originally appeared on BloggingStocks on Wed, 15 Aug 2007 17:15:00 EST. Please see our terms for use of feeds.

Lately, sentiment towards the U.S. dollar has grown increasingly negative and American investors have continued to weight portfolios in favor of overseas markets.

Yet, despite all the bearishness, the greenback has managed to recover smartly from its April lows.

In fact, on a technical basis, the U.S. Dollar Index, which reflects the unit's value against a basket of six other major currencies, has made what appears to be an important bottom. With the recent move upward through a key downtrend, the currency seems poised to rally even further.

One reason for the turnaround may be the prospect that U.S. interest rates will continue rising instead of falling, as many marketwatchers had been expecting only a short time ago.

Nervous profit-taking by some holders of foreign securities looking to lock in substantial paper profits, as well as short-covering by frustrated short-sellers among the large contingent of dollar bears, may also be contributing factors.

Finally, there may be "safe haven" buying of the greenback taking place on worries that global markets and geopolitical conditions are becoming increasingly unsettled.

Whatever the reasons, it's time to reconsider an overly negative stance on the U.S. currency.

Michael Panzner is a 25-year veteran of the global stock, bond, and currency markets and the author of Financial Armageddon: Protecting Your Future from Four Impending Catastrophes and The New Laws of the Stock Market Jungle: An Insider's Guide to Successful Investing in a Changing World.

U.S. dollar poised to move...upward? originally appeared on BloggingStocks on Wed, 13 Jun 2007 17:10:00 EST. Please see our terms for use of feeds.

More than a few optimistic reports have been written as the Dow Jones Industrial Average (DJIA) continues to climb to new highs. Given my value perspective and having run a few stock screens, some of the 30 stocks in the Dow have actually floated to the top. I will be reviewing the entire Dow in search of deep value and summarizing on my top three (10%) from a value perspective. The following is my view of the first five Dow stocks.

3M Company (NYSE: MMM) appears to be fairly valued from my perspective. I like the low debt ratio of 0.3 and higher than average yield of 2.19%. Given the price-to-book of 5.94 though, I think 3M will have to continue to expand its earnings overseas to interest me further. This is a quality stock, with good margins and good returns on equity, assets, and investment that are all higher than its lower than average P/E of 15. I view this stock as a good investment but not a great investment, and one that provides some downside protection.

Alcoa Aluminum (NYSE: AA) is on everyone's watch list, and for good reason. It reminds me of a line from the long-running TV show Married with Children, where Al Bundy shouts out to his wife Peg after a long day at the shoe store, "Either feed me, or feed me to something, I just want to be part of the food chain." There have been rumors galore that Alcoa might fall prey to a buyout from BHP Billiton Ltd ADR (NYSE: BHP) or another large player wanting to expand its North American presence. In the meantime, Alcoa has announced that it has an interest in acquiring Alcan Aluminum (NYSE: AL).

At 2.28, the price-to-book ratio of Alcoa is less than half that of 3M, and the price-to-sales is half too at 1.14. The debt levels are low and the price-to-cash-flow is low. Alcoa pays a lower than average (for the DJIA) yield of 1.75, but still respectable. For whatever reason, investors may be looking for soft pricing in aluminum related to concerns about a slowing world economy. While this may be a concern in the U.S., international growth does not seem to be slowing down. Alcoa is up about 35% from last year's lows, but only a couple of dollars from its highs of two years ago, so its path has been erratic. The low metrics, expanding international markets, and the high probability of consolidation in the market should create future pricing power. This does seem like a value play to me.

Continue reading Serious Money: Whittling away at the Dow -- MMM, AA, MO, AXP, & AIG: Part 1

Serious Money: Whittling away at the Dow -- MMM, AA, MO, AXP, & AIG: Part 1 originally appeared on BloggingStocks on Tue, 29 May 2007 09:30:00 EST. Please see our terms for use of feeds.