The factors behind why silver prices are down today (Wednesday) stem from the usual suspects: stronger than expected economic data and a rally in the U.S. Dollar Index.
Shortly before noon, spot silver prices were off about $0.40, or 2.4%, to $16.36 an ounce.
Weighing on silver prices today was the Commerce Department report showing that new orders for U.S. manufactured capital goods rebounded sharply in October.
Driven by rising demand for a range of machinery and equipment, durable goods last month rose 4.8%. That was solidly higher that the expected 2.7% rise.
Today’s upbeat durables news provides the U.S. Federal Reserve with one more reason to raise rates at its Dec. 13-14 meeting.
A recent string of solid economic data, improving corporate earnings, and rising share prices have investors preparing for an interest rate hike from the U.S. central bank next month. Market odds for a rate increase in December currently sit at 93.5%, accor ding to CME Group’s FedWatch Tool.
Top 5 Bank Stocks To Buy Right Now: Joy Global Inc.(JOY)
- [By Ben Levisohn]
UBS analyst Steven Fisher and Cleve Rueckert note that Joy Global’s (JOY) “cash flow has helped reduce credit risk,” but still rate it a Sell. They explain why:
We think the near-term credit picture has improved, but we think JOY still needs an earnings recovery to support debt reduction. We still see fundamental risk to coal and broader mining capex for 2017, and with 77% of the implied value based on future growth, we think the shares are pricing in too optimistic a recovery in earnings.
Oil sands booking in 2018 positive, but outlook weak for US coal in 2H16, 2017 JOY’s bookings in FQ2 were better than expected, and it cited some progress on company-specific initiatives. Still, management indicated that bookings are lumpy and likely to come down in 2H vs. 2Q. JOY also noted that a weak mining capex outlook is restraining growth expectations for 2017. While JOY raised its FY16 cash flow outlook by 5-10%, JOY has $1 billion in debt coming due over the next 5 years (2019 and 2021). We don’t expect JOY to pay it down entirely (some likely to be termed out), but we do think JOY needs more cash flow to reduce debt to lower levels in the event that there is an extended mining downturn…
We are raising our price target to $11, from $8, to reflect a slightly higher EV/EBITDA multiple (~8x; was 7.5x; higher commodity price environment and less credit risk) and higher 2017E EBITDA ($225m; was $215m).
Shares of Joy Global have gained 1.2% to $22.49 at 3:39 p.m. today, nearly double Caterpillar’s (CAT) 0.6% rise to $76.91. Deere (DE) has dropped 0.1% to $87.40.
- [By Ben Levisohn]
Baird’s Mircea Dobre and Joseph Grabowski contend that recent coal bankruptcies from the likes of Peabody Energy are, in fact, good news for Joy Global (JOY). They explain why:
- [By Michael Flannelly]
Robert Baird analysts downgraded mining equipment manufacturer Joy Global Inc. (JOY) on Wednesday, noting that the mining downturn is not yet priced into the stock.
The analysts downgraded JOY from “Outperform” to “Neutral” and see shares reaching $55. This price target suggests a 4% upside to the stock’s Tuesday closing price of $52.96.
Joy Global shares were down 52 cents, or 0.98%, during early morning trading on Wednesday. The stock is down 19.76% year-to-date.
- [By Ben Levisohn]
Barclays analysts Robert Wertheimer and Adam Seiden explain why they not only upgraded Joy Global (JOY) to Overweight from Equal Weight, but the entire US Machinery Industry to Neutral from Negative:
- [By Lisa Levin]
On Thursday, basic materials shares climbed by 0.26 percent. Top gainers in the sector included Joy Global Inc. (NYSE: JOY) and Hecla Mining Company (NYSE: HL).
- [By Dan Caplinger]
Income investors appreciate stocks that pay lucrative dividends, and recently, many companies have seen the value in treating shareholders well by boosting their regular payouts. Yet a few holdouts simply don’t show their appreciation for their investors through dividends. For whatever reason, rather than having no dividend at all, Joy Global (NYSE:JOY), Textron (NYSE:TXT), and Global Payments (NYSE:GPN) maintain the tiniest of quarterly payments. Let’s look more closely at these stocks to see why they do what they do with their dividends.
Top 5 Bank Stocks To Buy Right Now: URS Corporation(URS)
- [By Ben Levisohn]
Fidelty’s John Mirshekaritook a look at URS(URS) today at the Value Investing Congress.His takeaway: The stock could double in two years.
Agence France-Presse/Getty Images
His analysis started with URS’s use of its free cash. During the past, it hasn’t been pretty. They spent 6.3 billion on eight acquisitions, they’ve bought companies at valuations higher than own stock and return-on-equity has dropped from high teens to just 6%.
The problem hasn’t been its business: Its return on tangible capital is 17%. Instead, the problem is that its management hasn’t maximized value through capital allocation. URS has lowest valuation: 9x 2013 cash earnings in its industry.
Part of the problem: Management incentives are based on net income. This year, however, relative total shareholder return was added., something Mirshekari calls”a step in the right direction.” In May, URS filed an amended proxy which says it will look to change incentives from net income to return on equity and earnings per share. More importantly, it said acquisitions would end.
If all goes right, URS could double in two years,Mirshekari says, comparing it to AECOM Technology (ACM).
Looks a lot like AECOMM, which did something similar and rallied.
- [By Ian Wyatt, Publisher & Chief Investment Strategist, Wyatt Investment Research]
Fund manager John Mirshekari, of the Fidelity Low-Priced Stock Fund, recommended shares of URS (URS), an engineering and construction contractor.
Top 5 Bank Stocks To Buy Right Now: Franklin Resources, Inc.(BEN)
- [By WWW.THESTREET.COM]
Franklin Resources (BEN) : “I’d rather see you in Morgan Stanley (MS) or E*TRADE Financial (ETFC) .”
Kinder Morgan (KMI) : “They are OK now, but there are better ones.”
- [By Craig Jones]
Jim Strugger recommended on Bloomberg Markets a long position in Franklin Resources, Inc. (NYSE: BEN).
He said the company is in the assets management sector and he added that the market is probably getting into the period of higher dispersion, which is usually favorable for active managers. Speaking on the positive catalysts for the stock, Strugger said Franklin Resources is going to benefit from the cash repatriation.
- [By Mike Deane]
On Thursday, Franklin Resources (BEN) announced that it was declaring a quarterly dividend of 10 cents, a 2.6% cent increase from its previous quarterly payout.
The San Mate0, CA-based investment management company previously paid a quarterly dividend of 9.75 cents, or 39 cents annually. The new dividend is payable on October 11th, 2013 to all shareholders of record on September 30th, 2013. The ex-dividend date is September 26th, 2013.
BEN shares were down 10 cents, or .21%, at Thursday’s market close. The company’s stock is up over 11% YTD.
Top 5 Bank Stocks To Buy Right Now: SuperValu Inc.(SVU)
- [By Demitrios Kalogeropoulos]
As for individual stocks, SUPERVALU (NYSE:SVU) and MSC Industrial (NYSE:MSM) stood out with big pricing moves after announcing quarterly business updates.
- [By Peter Graham]
The Q3 2017 earnings report for small cap grocery store stock SUPERVALU Inc (NYSE: SVU) is scheduled for before the market opens on Wednesday (January 11th). A few years ago, SUPERVALU was struggling as the most shorted grocery stock on the market; but just before the last earnings report, the Company announced that it has entered into a definitive agreement whereby an affiliate of ONEX Corporation (TSE: ONEX) will acquire itsSave-A-Lot business for $1.365 billion in cash. The President/CEO stated:
Top 5 Bank Stocks To Buy Right Now: Abeona Therapeutics Inc.(ABEO)
- [By Jim Robertson]
On Thursday, our Under the Radar Moversnewsletter suggested shorting small cap rare disease stock Abeona Therapeutics Inc (NASDAQ: ABEO):
Abeona Therapeutics is clearly a timing trade – we think today’s something of a blowoff top, marked by a volume surge and the fact that the stock’s already peeling back from its peak; the profit-takers are already going to work. We saw a similar surge on Tuesday, and though that one didn’t end up kick-starting a pullback, it helped set up today’s reversal bar (by virtue of luring in the last of the would-be buyers). There’s just not a lot of room left for more upside.