Month: April 2012

The concerns about government transitions explain a lot of today’s sharp fall in European stocks. The French elections continue to cause market jittery because many perceive the opposition leader Hollande as lack of international experience and may reopen the wounds on healing financial system and fiscal compact if elected. The first round results in the French presidential race showed that President Sarkozy was trailing the opposition candidate. In the next two weeks, it is so important to see whether Sarkozy or Hollande could successfully absorb the votes on other candidates in the first round. But the latest polls indicate it remains to be a very tight event.In the Netherlands, Prime Minister Rutte offered his resignation following the withdrawal of support by the far-right party leader in the coalition government over the planned budget cuts to meet the EU target. Political uncertainty has raised the uncertainty over fiscal condition in the country. At this stage, it remains unclear when elections will be held and how parliament can conclude a budget without a government.

Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned cash to make a purchase, is that they expect to make money. Today we look at two noteworthy recent insider buys.

3M (MMM) announced that net income increased by four percent in the first quarter due to strong sales in its automotive and aerospace sectors. The company earned $1.13 billion, or $1.59 per share, beating analyst estimates of $1.48 per share.

Shares of Chesapeake Energy (NYSE:CHK) are trading 4% lower on a downgrade to Hold from Morgan Stanley.MS cited concerns about declining natural gas prices.MS lowered its 2012 natural gas composite spot estimate to $2.40 per MMBtu, and sees more downside risk than upside risk.They echoed that commentary for its 2013 estimate as well.

The Albanian government is preparing to sell 99-year leases for about 40 of its historic castles and ancient monuments to ease the burden of their costly upkeep.

Bank of America (NYSE:BAC) is seeing a high volume today on Wall Street, trading close to 1% higher with over 141 million shares actively moving on the floor.This is because of Bank of America’s earnings release scheduled for this Thursday April 19th. Analysts are expecting the bank to post an EPS of $0.12 with revenues of $22.51 billion.Bank of America is also topping the news today after Ambac Assurance announced they will be suing the bank in New York state court on a breach of contract over a mortgage-backed securitization. Ambac claimed fraudulent inducement and breach of contract in the suit and asked for unspecified punitive and compensatory damages.

The Commerce Department reported better than expected retail sales on Monday, saying sales increase 0.8 percent, more than the 0.3 percent analysts were expecting.This gives optimism to investors who have been discouraged due to higher unemployment claims and fewer jobs added in March. The report also shows the economy grew at an annual rate of 3.0 percent in the fourth quarter and growth in the January to March period was at a rate of 2.5 percent.This could also prompt analysts to raise their forecasts for first quarter consumer spending which is a main driver of the economy.

Two of the world’s largest oil producers announced a mutual agreement Monday on multiple projects around the world.Rosneft will acquire 30% stakes in three North American projects belonging to Exxon Mobil (NYSE:XOM). In return, Exxon will get access to Russia’s offshore fields which Rosneft has control over.The two companies will also form joint ventures to manage an exploration program in the Kara and Black Seas. The initial cost of the preliminary exploration will be over $3.2 billion.Under the deal, Rosneft and Exxon will continue to share technology and expertise as well as jointly explore for and develop oil and natural gas in Russia.

The trial of two-time presidential candidate John Edwards is underway to determine whether he broke campaign finance law.

WW Grainger (NYSE:GWW) reported Q1 EPS of $2.57, topping estimates of $2.52.Revenues in the quarter came in at $2.19 billion, vs. estimates of $2.20 billion.The company said it sees sales growth of 12% – 14%, vs. its prior guidance of 10% – 14%, and estimates of 13%.The company sees 2012 EPS of $10.40 – $10.80, up from its prior guidance of $9.90 – $10.65, vs. estimates of $10.60.