Stock Market Summary

Stocks finished higher today with the major indexes closing near session highs.  In addition, the DJIA posted another new high.  Investor participation was ok and market breadth was good.  As a result, we are raising the support levels on the DJIA, S&P 500, and Nasdaq Composite (see below).  Also, we are increasing the resistance level for the DJIA but leaving it the same for the S&P 500 and Nasdaq Composite (see below).  Overall, we continue to believe the prudent approach is continue selling into strength and avoid becoming aggressive with opening new positions in stocks based on how far the stock market direction has run without a significant pullback.  Don't let a position turn into a big loss if the market trend suddenly changes.  If you need to own stocks, please see our open watch list below.

 

SUMMARY

 

DJIA: Up 0.9% to 11,981

S&P 500: Up 0.6% to 1,291

Nasdaq Composite: Up 1.0% to 2,718

 

BREADTH FOR NYSE

 

Advancing Issues: 2,143

Declining Issues: 904

Advance/Decline Ratio: 2.4 to 1

 

New Highs: 113

New Lows: 10

High/Low Ratio: 11 to 1

 

SUPPORT/RESISTANCE LEVELS

 

DJIA: 11,706/12,029

S&P 500: 1,274/1,295

Nasdaq Composite: 2,701/2,766

 

SECTOR ANALYSIS

 

Technology was the best performing sectors up 1.4% while Financials and Health Care were the worst performing sectors down 0.1%.

 

Other Sectors:

 

Consumer Discretionary Up 0.4%

Consumer Staples Up 0.2%

Energy Up 0.5%

Industrials Up 1.0%

Materials Up 1.1%

Utilities Up 0.6%

 

OPEN WATCH LIST SYMBOLS (Through Monday, January 22, 2011)

 

(SH: 42.6919 0.00 0.00%) added @ $46.03 on 11/12/10; current price @ $42.69; 7.3% loss

(PSQ: 33.40 0.00 0.00%) added @ $35.05 on 12/8/10; current price @ $33.40; 4.7% loss

(RWM: 32.30 0.00 0.00%) added @ $32.79 on 12/16/10; current price @ $32.30; 1.5% loss

(UUP: 22.44 0.00 0.00%) added @ $22.80 on 1/14/11; current price @ $22.44; 1.6% loss

(EUO: 19.40 0.00 0.00%) added @ $20.30 on 1/14/11; current price @ $19.40; 4.4% loss

(FDO: 43.44 0.00 0.00%) added @ $44.64 on 1/21/11; current price @ $43.44; 2.7% loss

 

CLOSED WATCH LIST SYMBOLS

 

(UUP: 22.44 0.00 0.00%) added @ $22.56 on 10/20/10; removed @ $23.51 on 11/30/10; 4.2% gain

(EUO: 19.40 0.00 0.00%) added @ $19.19 on 10/20/10; removed @ $21.65 on 11/30/10; 12.8% gain

(APOL: 41.87 0.00 0.00%) added @ $37.77 on 10/28/10; removed @ $39.97 on 12/31/10; 5.8% gain

(NUVA: 27.91 0.00 0.00%) added @ $25.11 on 11/12/10; removed @ $26.03 on 12/31/10; 3.7% gain

(DLR: 52.37 0.00 0.00%) added @ $52.22 on 11/26/10; removed @ $53.01 on 12/10/10; 1.5% gain 

(CSCO: 21.17 0.00 0.00%) added @ $19.36 on 12/2/10; removed @ $20.91 on 1/6/11; 8.0% gain 

(UUP: 22.44 0.00 0.00%) added @ $23.14 on 12/8/10; removed @ $23.37 on 1/10/11; 1.0% gain 

(EUO: 19.40 0.00 0.00%) added @ $20.79 on 12/8/10; removed @ $21.73 on 1/10/11; 4.5% gain 

Cellectis Bioresearch First To Launch Revolutionary Custom TAL Nuclease Service

PARIS, Jan. 25, 2011 /PRNewswire/ — Cellectis bioresearch, a specialist in genome customization and a subsidiary of Cellectis (Alternext: ALCLS), has today announced that it will launch gene specific TAL(1) nucleases on February 28, 2011.

Taking advantage of an exclusive license agreement with the University of Minnesota, Cellectis has rapidly integrated TAL effector nucleases into its DNA nuclease production platform. TAL effector nucleases are sequence specific DNA scissors that can be custom engineered to target and modify any gene of interest, in any species. Cellectis is able to produce TAL nucleases in around one week, providing scientists with rapid access to custom-made products.

"This technology has a huge potential and could revolutionize the genome customization world. Being the first to launch TAL nuclease services puts us in an attractive position to gain significant share of the multimillion dollar market for custom DNA nucleases," explained Marc Le Bozec, CEO of Cellectis bioresearch.

"We add yet another asset to our portfolio of important genome customization tools, and invite you to visit our website on February 28, for the official launch of our custom TAL nuclease offer," added Luc Selig, VP Sales and Marketing of Cellectis bioresearch.

About Cellectis bioresearch

Cellectis bioresearch was incorporated as a subsidiary of Cellectis (Alternext: ALCLS) in June 2008. It provides life science researchers with ready- and easy-to-use tools for genome customization.  These tools, based on sequence specific endonucleases, enable the engineering of cells with optimized features for drug discovery, protein production and gene function studies. The genome customization products and services can be purchased online from www.cellectis-bioresearch.com.

About Cellectis

Cellectis improves life by applying its genome engineering expertise to a broad range of applications, including agriculture, bioresearch and human therapeutics. Cellectis is listed on the NYSE-Euronext Alternext market (code: ALCLS) in Paris.

 

Disclaimer

This press release and the information contained herein do not constitute an offer to sell or subscribe, or a solicitation of an offer to buy or subscribe, for shares in Cellectis in any country. This press release contains forward-looking statements that relate to the Company's objectives based on the current expectations and assumptions of the Company's management only and involve unforeseeable risk and uncertainties that could cause the Company to fail to achieve the objectives expressed by the forward-looking statements above.

Speculators Exit Gold & Silver, But Remains Heavily Long Other Markets

There are many ways to measure market sentiment. We use surveys, put-call ratios, fund flows data and for commodities especially, the commitment of traders reports (COT). Lately, we've noted the improving sentiment picture for Gold. As a market weakens sentiment will naturally become less bullish. In this case, sentiment has weakened considerably yet Gold is only 6% off its high.

Most interesting in particular is the divergence between the COT data for Gold and Silver and the rest of the commodities. The speculators (non-commercials) according to the COT data are positioned more bullishly in Copper, Oil, Corn and Wheat while they've cut back long positions in Gold and Silver.

First we see the chart of Gold and the commercial traders' net short position at the bottom. The commercials' short position is down 32% in the last several months. In other words, the speculative long position in Gold is down 32% and is at its lowest point since the middle of 2009.

The COT picture is equally as encouraging for Silver bulls. Net non-commercial long positions are down about 30% in the last several months. The last time commercial traders held a similar position, Silver rallied from $17 to $20, $18 to $24 and from $26 to $31.

Meanwhile, let's take a look at Copper. Back in mid 2010 when Copper fell below $3.00/lb, the commercials' net position was neutral. Now their net short position is the highest in at least several years.

The same can be said for Crude Oil.

And Corn.

Meanwhile, the commercials are somewhat net-short of Wheat. Yet, about 95% of the time during the last three years, commercials were net-long Wheat.

It is not shown in the charts but open interest in these markets remains near recent highs while open interest in Gold and Silver are 10% and 14% off recent highs. This is another sign that speculation in Gold and Silver has diminished but not in the other commodities.

We'd also note that per sentimentrader.com, public opinion has declined from 73% bulls to 62% in Gold and from 86% to 72% in Silver.

In the larger picture, Gold and Silver are in an enviable position. While they've been in corrective mode, they've only declined marginally while shedding the speculative "hot" money that in fact, continues to reside in other markets. Moreover, as the economic recovery stagnates and more monetization is forced on the US and other governments, Gold and Silver will reassert their leadership. Money will come out of bonds in favor of the premier hard assets, Gold and Silver.

Asia Stocks Broadly Higher On Earnings Optimism; Nikkei Up 1.15%

Forex Pros – Asian stocks were broadly higher on Tuesday as market sentiment was boosted by upbeat corporate earnings reports from Wall Street, while Japanese exporters advanced amid optimism over the global economic recovery.

During late Asian trade, Hong Kong's Hang Seng Index climbed 0.33%, South Korea's Kospi Composite added 0.22%, while Japan's Nikkei 225 Index jumped 1.15%.

Shares in many of the big name Japanese exporters advanced amid optimism over the global economic recovery, boosting the outlook for export earnings.

Shares in electronics giant Sony surged 2.31%, rival Toshiba saw shares climb 1.23%, while shares in Nissan Motor, which gets approximately 60% of its revenue abroad rose 1.93%.

Meanwhile, shares in the world's third largest maker of computer memory chips Elpida Memory rallied 2.29%, while rival Tokyo Electron saw shares gain 0.93% after chip manufacturing giant Texas Instruments reported better-than-expected fourth quarter earnings on Monday.

Earlier in the day, the Bank of Japan kept its benchmark interest rate and the size of its asset-buying fund unchanged, in line with expectations.

In Hong Kong, shares in the energy sector led gains after the nation's largest oil and gas producer PetroChina saw shares jump 1.14% after it said that it was targeting a 1.5 billion metric tons increase in proven oil reserves between 2011 and 2015 at its Changqing field, the nation's second largest oil field.

Shares in rival Sinopec surged 1.53%, China Shenhua Energy saw shares gain 0.57%, while shares in the nation's largest offshore oil producer Cnooc climbed 0.52%.

Elsewhere, Australia's S&P/ASX 200 Index rose 0.46% as market sentiment was boosted after official data showed that inflation in the fourth quarter rose by 0.4%, compared with economists' expectations for a 0.7% increase.

Meanwhile, shares in the financial sector performed strongly, with shares in the nation's largest lender National Australia Bank rising 0.69%. Shares in rival Commonwealth Bank of Australia added 0.54%, while Westpac Banking Group saw shares gain 0/49%.

The outlook for European equity markets, meanwhile, was mixed. The EURO STOXX 50 futures pointed to a gain of 0.15%, France's CAC 40 futures indicated an increase of 0.05%, the FTSE 100 futures pointed to a drop of 0.04%, while Germany's DAX futures were up 0.05%.

Later in the day, the U.S. was to produce data on consumer confidence, as well as a report on house prices.

Aggressive Growth Stock: Caliper Life Sciences

Caliper Life Sciences (CALP: 6.36 0.00 0.00%) recently announced preliminary financial results that breathed some life into the stock. Estimates are moving higher as a result.

CALP currently has a Zacks #1 Rank (Strong Buy) and continues to expand into new markets.

Company Description

Caliper Life Sciences develops advanced instruments and outsourcing services for pharmaceutical, biotech and other research institutions and companies.

Positive Announcement

On Jan 13 Caliper released preliminary fourth-quarter results that made investors quite happy. Revenue came in at $36 million, which brings the full-year mark to $124 million. That is a 10% organic growth rate.

Caliper's gross margin expanded by over 800 bps, allowing them to surpass goals for 2010. The company raised its 2011 guidance and is now expecting the top line to improve 12-20%.

Estimates Move Higher

Both analysts polled by Zacks raised their full-year estimates for this year on the news. Caliper is expected to break even this year; up from a 9-cent loss they were expecting 3 months ago.

Next year's forecasts are averaging 3 cents, up from a 2-cent loss. While the earnings figures are not impressive on the surface, the upward momentum is encouraging. In 2009 Caliper lose 12 cents.

M&A Activity

On Dec 21 Caliper said it completed a previously announce deal to acquire Cambridge Research & Instrumentation, Inc for $20 million in cash, assumed debt and common stock. The move will help Caliper break into the tissue imaging and digital pathology market.

The Chart

The recent news and raised guidance gave shares of CALP a jolt. There is a level of resistance here, but given the upward estimate revisions there is a good chance that we see a new high soon.

Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Small Cap Trader service

Growth & Income Stock: B&G Foods, Inc.

Earnings estimates have been rising for B&G Foods, Inc. (BGS: 13.78 0.00 0.00%) after the company reported a solid third quarter in which EPS beat the Zacks Consensus Estimate by 11%. Despite a modest increase in sales, the company was able to grow its margins significantly, leading to a 20% increase in operating income year-over-year.

The stock has risen more than 20% since its latest earnings surprise, but shares remain reasonably priced. The company also pays a dividend that yields an attractive 5.0%. It is a Zacks #2 Rank (Buy) stock.

Company Description

B&G Foods, Inc. manufactures various shelf-stable foods, including hot cereals, fruit spreads, spices, seasonings, salad dressings, Mexican food, pickles and other specialty foods products. Its brands include Cream of Wheat, Cream of Rice, Emeril's, Las Palmas, Ortega and Red Devil.

The company is headquartered in Parsippany, New Jersey and has a market cap of $647 million.

Third Quarter Results

B&G reported third quarter earnings per share of 20 cents, beating the Zacks Consensus Estimate by 11%. It was a 43% increase over the same quarter in 2009.

Net sales increased a modest 1.0% due in part to slightly higher prices and volumes. The gross margin expanded from 29.2% of sales to 31.3%, leading to an 8.2% increase in gross profit. The margin increase was due to a reduction in coupons and a decrease in commodity and ingredient costs.

Meanwhile, operating income grew 19.6% as the company lowered its selling, general and administrative expenses.

Outlook

Earnings estimates have been climbing recently, as seen in the company's Price & Consensus chart:

The Zacks Consensus Estimate for 2010 is 81 cents, representing a 40% increase over 2009 EPS. The 2011 estimate is currently 90 cents, equating to 11% growth. It is a Zacks #2 Rank (Buy) stock.

Dividend

B&G Foods pays a dividend yielding an attractive 5.0%. Back in 2008, however, the company cut its quarterly dividend from 21.2 cents to 17 cents per share. It hasn't moved it since.

Its payout ratio of 91% is relatively high too, so don't expect a dividend increase anytime soon.

Valuation

Shares are up more than 20% since its latest earnings surprise, but valuation still remains in check. The stock trades at 15.1x forward earnings, a discount to the industry average of 16.5x. Its price to book multiple of 2.9 is higher than the peer group at 2.1, however.

Todd Bunton is the Growth & Income Stock Strategist for Zacks.com.