Energy Shares Fell on Wall Street on Tuesday
Posted on April 20, 2012, by admin, under Finance.
Energy shares slipped on Wall Street on Tuesday April 3, 2012 because of escalating tensions between Israel and Iran.
Crude oil futures slipped over 2%. Peabody Energy fell 6.5% and Exxon Mobil slipped 0.6%.
Decline in energy shares caused a loss of 1.1% to the S&P 500 energy sector index.
The Dow Jones Industrial Average dipped 2.73 points and the S&P 500 slipped 4.46 points.
Tuesday’s strongest gainer was telecommunications, which shares increased by 0.5%. AT&T gained 0.8% and Verizon Communications gained 0.6%.
todd genger
“The Standard & Poor’s 500-stock index gained 9% since the beginning of 2012, but tensions between Iran and Israel and European debt issues are still weighing on the market,” says Todd Genger a financial consultant in New York.
Market analysts are quite anxious about increasing oil prices, as energy prices may again create trouble for the U.S. economy. With Obama’s reelection campaign about to swing into full force during the late summer and fall the economy will be an area of close scrutiny by the American public and the eventual Republican nominee.
“Overall, the day to day swings in energy prices or energy shares will not matter much, but the more important takeaway is that we will likely see a lot of market volatility for the foreseeable future,” says Todd Genger.
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Will 2012 Be More Difficult Than 2011?
Posted on January 23, 2012, by admin, under Finance.
By Todd Genger
What do you expect from 2012? Will it be better than 2011 or will the economic situation deteriorate further? German Chancellor Angela Merkel expects that 2012 will be worse than 2011. Most of the economists and European politicians were stunned by her statement, as she is widely considered among the most optimistic European politicians. So, we need to take her statements seriously. This is why. The size of the European economy is larger than the combined economies of the U.S. and China. EU has more Fortune 500 companies than the United States of America, shares Todd Genger. The European banking system is far larger than the U.S. So, the crisis in Europe can spread and endanger the recovering U.S. economy.
At present, The U.S. economy is improving, which is boosting confidence among investors all over the world. And stock markets all over the world are rising in anticipation, stats Todd Genger. A worsening European debt crisis is something that U.S. and other economies fear.
As we reached the end of 2011, things looked much better for the U.S. economy, a positive job report and consumer borrowing numbers encouraged investors. Now many economists can claim that the U.S. economy will recover soon. But, predictions about the market are never easy and we need to keep our eyes on Europe.
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ICSC Reported 3.5% Gain in Retail Sales
Posted on January 11, 2012, by admin, under Finance.
By Todd Genger
International Council of Shopping Centers recently released its report that sales in retail stores grew by 3.5% in in December 2011. The International Council of Shopping Centers (ICSC) is the global trade association of the shopping center industry.
As shoppers in the U.S. are going through a tough time because of continued high unemployment and the legacy of a stock market downturn, the gain during the final month of the calendar year can be said to be a good sign for retail business. Brands like Macy’s and Nordstrom witnessed strong revenue gains that beat analysts’ estimates, stats Todd Genger.
According to the Chief Economist at the International Council of Shopping Centers, Michael Niemira said, “The holiday season was OK. But because of the extremely competitive environment, stores had to do whatever it took to get those sales, and that affected profits.”
Kohl’s Chairman Kevin Mansell said, “Our December sales results were short of our expectations, although much improved over November’s results.”
Luxury retailers enjoyed a strong season as Nordstrom had an 8.7% increase in revenue and Saks posted a 5.8% increase, while Kohl’s, and J.C. Penney witnessed a decline in sales.
Many business analysts associated with retailers have insisted on discounts and offers to tempt customers, as the market is experiencing a tough time and people do not want to spend their money unless they see a substantial discount, shares Todd Genger.
The ICSC report indicates that people are ready to spend but only for special occasions and for the right offers. This report may boost consumer confidence and raise future expectations for retail business owners.
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Last Months of 2011 Boosted US Investor Confidence
Posted on January 6, 2012, by admin, under Finance.
By
Todd Genger
2011 will be known in economic history, as a year spreading uncertainty and fear across the world market. Last year many strong economies faltered and a few are still severely stressed and at risk of default. The beginning of 2011 was not good for the US stock market. It was struggling to regain its footing while people around US and the world warned of the risk of a double dip recession because of heavy losses in US and European markets. But the ending months of 2011 gave a relief to the US economy and brought confidence back to US investors — that is a good sign for not only the US but also all for economies all over the world, as the volatility of the US markets have a significant impact around the globe.
The US housing industry, small businesses, and the manufacturing sector showed some signs of life in the fourth quarter, says Todd Genger. They boosted the US economy by hiring a large number of people and ramping up production. It is expected that in 2012, these sectors will continue to rebound and play a significant role in the growth of the economy. They can be given credit to bring confidence back to investors shaken by a difficult recession and a slow recovery.
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US Firms See Better Opportunities Emerging from the European debt Crisis
Posted on January 3, 2012, by admin, under Finance.
By
Todd Genger
Many United States corporations are seeing the European economic crisis as a chance to increase their hold on the European market. To accomplish this goal, they are offering loans and investing in sinking European organizations.
European banks are scrambling to raise capital and shrink their balance sheets according to the orders of their regulators. According to estimates, European financial institutions may unload up to $3 trillion in assets during the next 18 months.
American firms are taking interest in a worried Europe notwithstanding problems of their own. In the last quarter, JPMorgan Chase and Morgan Stanley have suffered from exposure to European borrowers.
Google is also taking advantage of investment opportunities across the pond and purchased the Montevetro building in Dublin this year from Ireland’s National Asset Management Agency, says Todd Genger.
KKR executive Nathaniel Zilkha said, “If no one is willing to turn over the rocks that’s when you can make extraordinary investments. The market dislocation in Greece is creating significant opportunities that wouldn’t be otherwise available.”
According to many American economists, investing in Europe is not without risk. It is a big bet on European sovereign debt. American firms are hesitant about investing in European companies, but recognize the rewards outweigh the risk. According to an economic expert, investing in good European companies will be a long term benefit for investors, because when the market gets back on track, they will again perform and earn millions of dollars for their shareholders.
Seeing the present situation, it can be said that despite domestic economic uncertainty, American firms are taking interest in distressed European companies as a way to spark growth in coming years.
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U.S. Lawmakers Have Decided to Expand Federal Role in Mortgages
Posted on January 1, 2012, by admin, under Finance.
By
Todd Genger
Lawmakers, who were previously arguing vociferously to shrink the U.S. government’s role in mortgage finance, are now looking at several new initiatives expanding the government’s role in mortgage finance.
A payroll tax cut extension signed into law will divert funds from the two mortgage-finance companies Fannie Mae and Freddie Mac to pay for general government expenses.
Lawmakers have permitted a tax break on private mortgage insurance to expire and to raise loan limits for mortgages insured by the FHA.
Edward Pinto, a resident fellow at the American Enterprise Institute, a Washington-based research organization said, “The goal was, at the beginning of the year, how do we wind these down? And at the end of the year we have further entrenched them and made it more difficult to wind them down, which is classic Washington.”
The Federal Housing Finance Agency, which supervises Fannie Mae and Freddie Mac, instructed the companies to raise fees on new mortgages by an average of 10 basis points from April 1.
FHFA Acting Director Edward J. DeMarco recently said in a written statement: “The average guarantee fees charged in 2012 need to be at least 10 basis points greater than the average guarantee fees charged in 2011 with the additional revenue remitted to the U.S. Treasury Department.”
A Banking Consultant Bert Ely said, “In effect, this is a tax on Fannie and Freddie mortgages. When you go to privatize or take any action to wind them down, you have a budget effect that you didn’t have before.” In short, it can be said that US lawmakers did not find that shrinking the government’s role in mortgage finance improved the housing market or stabilized mortgage financing opportunities.
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FedEx Delivers Smiles on Wall Street
Posted on December 20, 2011, by admin, under Finance.
By Todd Genger
After the international package delivery service giant FedEx reported 76% earnings growth (in comparison to the last year’s results) for the period of three months ended on November 30, 2011, Wall Street saw the earnings report and news of a purchase of more Boeing aircraft as a sign of very good news for the future of the domestic economy, as the U.S. continues to struggle with a low-growth, high-unemployment recovery.
Reflecting on the impressive numbers, Mr. Donald Broughton at Avondale Partners stated, “Management were clear that incremental volume increase in ground shipping is due to a surge in ecommerce orders.”
Thanks in large part to e-commerce leaders (thanks Amazon and Apple) FedEx reported fiscal second-quarter profit of $497 million, or $1.57 a share, up 76% from the $283 million, or 89 cents a share, reported a year ago. Analysts had been expecting a profit of $1.52 a share, shares Todd Genger.
FedEx also reported that they had reached an agreement with Boeing to buy 27 new 767-300F aircraft, to help Santa ensure all deliveries will be on-time over the next several years.
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Central Banks Take Action to Avoid a Financial Crisis
Posted on December 8, 2011, by admin, under Finance.
By Todd Genger
Earlier this week, the Federal Reserve, the European Central Bank and the Bank of Canada, the Bank of England, the Bank of Japan and the Swiss National Bank announced a plan of coordinated action to bolster liquidity in financial markets to avoid a repeat of the 2008 financial meltdown. The goal of the central bank action is to lower the price for banks to borrow overnight dollars. The liquidity swap arrangements will reduce by nearly half the price that central banks offer short term funds to the U.S. dollar overnight index swap rate.
This action does not address the underlying debt and budget crisis facing much of Europe, but it provides some short-term relief to allow some of these issues to work their way through the legislative and policy process that moves interminably slow across the pond. Although China did not participate in the action, they did make a move to ease lending stress by reducing the amount of reserves Chinese banks need to hold with their central banking institutions.
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Securities and Exchange Commission Takes On Conflict Minerals
Posted on October 22, 2011, by admin, under Finance.
The Securities and Exchange Commission (SEC) recently announced that it will host a public roundtable discussion forum next month to discuss the agency’s required rulemaking under Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which relates to reporting requirements regarding conflict minerals originating in the Democratic Republic of the Congo and adjoining countries.
Specifically, under proposed rulemaking, companies would be required to disclose annually whether they use “conflict minerals” that are “necessary to the functionality or production” of a product that they either manufacture or contract to be manufactured that originate from the Democratic Republic of the Congo or adjoining countries. The conflict minerals are cassiterite, columbite-tantalite, gold, wolframite or their derivatives. These minerals are critical to many products of consumer interest — from jewelry to mobile phones to jet engines.
The event will take place on October 18, 2011 and will provide an opportunity for various stakeholders to exchange views and provide input on issues related to the SEC’s required rulemaking. The panel discussions will focus on key regulatory issues such as appropriate reporting approaches for the final rule, challenges in tracking conflict minerals through the supply chain, and due diligence and other requirements related to the rulemaking.
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How to Fix Mistakes or Errors on Broker Check
Posted on October 17, 2011, by admin, under Finance.
BrokerCheck is a free online service offered by the Financial Industry Regulatory Authority, Inc. (FINRA) to help investors research the professional backgrounds of current and former FINRA-registered brokerage firms and brokers. According to Todd Genger, a leading independent compliance consultant, the information made available on BrokerCheck is derived from the Central Registration Depository (CRD), a securities industry online registration and licensing database. BrokerCheck provides background information on approximately 1.3 million current and former FINRA-registered brokers and 17,000 current and former FINRA-registered brokerage firms.
According to Todd Genger, Mistakes can and do happen and FINRA Rule 8312(e) allows eligible individuals and member firms to dispute or update the accuracy of information that is disclosed in their own Broker Check reports.
Any current or former FINRA firm or associated or formerly associated person of a FINRA firm for whom a BrokerCheck report is available may submit a dispute resolution form to report the inaccuracy, says todd genger.
With respect to former FINRA firms, a dispute must be submitted by an individual who served as the former FINRA firm’s Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Chief Legal Officer or Chief Compliance Officer, or a person with similar status or function, as identified on Schedule A of Form BD at the time the former FINRA firm’s registration with FINRA terminated.
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