As the company behind the prestigious New York Stock Exchange, NYSE Euronext (NYSE: NYX ) makes money when people trade any stock. Yet for its own part, NYSE Euronext stock has soared in anticipation of its pending $8.2 billion acquisition by rival IntercontinentalExchange (NYSE: ICE ) . With European regulators having approved the deal earlier this week, the transaction appears to be on track to close during the second half of the year, although the SEC and other regulators have yet to weigh in. Let's take a closer look at the exchange industry and what shareholders in NYSE Euronext can expect going forward.
Understanding the ICE deal
If you own NYSE Euronext stock, the ICE buyout gives you choices about what you'll receive in exchange for your shares. With the transaction valued at $33.12 per share at the time of the offer in late December, shareholders will have the election of receiving cash or ICE shares, with 25.81 shares of ICE stock for every 100 shares of NYSE Euronext stock you own. The election is subject to maximum cash and stock requirements that ICE set, with an overall mix of two-thirds stock and one-third cash. Due largely to the fact that ICE shares have posted strong gains, the stock price for NYSE Euronext has climbed well above the $33.12 level.
Top 5 Diversified Bank Stocks To Invest In 2015: Schlumberger N.V.(SLB)
Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.
Advisors' Opinion:- [By Rick Aristotle Munarriz]
Bloomberg via Getty Images You can never know in advance all the news that will move the market in a given week, but some things you can see coming. From a parade of bankers' earnings to a pizza giant rolling out a new crust, here are some of the things that will help shape the week ahead on Wall Street. Monday -- X Marks the Spot: Data storage is a big part of businesses in the modern age; companies have massive amounts of information to manage and keep secure. Xyratex (XRTX) may not be a household name, but it is well-known to corporate IT departments seeking enterprise data storage solutions. Xyratex reports on Monday afternoon. It's seen better days, and analysts predict it will report a sharp drop in revenue. However, Xyratex has been able to beat Wall Street's profit targets with ease over the past four quarters. Tuesday -- Big Banking's Big Close Up: It's going to be a roll call of the "too big to fail" banking behemoths as they step up for their quarterly results. Wells Fargo (WFC) and JPMorgan Chase (JPM) kick things off on Tuesday. That will be followed by Bank of America (BAC) on Wednesday. Citigroup (C) and Goldman Sachs (GS) step up on Thursday. These are interesting times for the financial services providers. Interest rates are starting to move higher, and that may get in the way of demand for mortgages, but it will also help improve the chances that customers open and fund savings and checking accounts. Wednesday -- Tracking Trains: Railroads may seem like yesterday's mode of transportation, but rail remains a viable way to get goods moving across the country. CSX (CSX) reports on Wednesday. The provider of rail, intermodal, and rail-to-truck transload services and solutions has been shipping goods for 185 years. It offers coverage through every major metropolitan market in the eastern United States. Analysts see revenue inching up by 3 percent, with CSX's profit of $0.42 a share besting the $0.40 a share it posted a year earlier. CSX will
- [By Dan Caplinger]
Halliburton has focused much of its attention on the booming U.S. market, giving it more exposure to domestic production than more globally focused rival Schlumberger (NYSE: SLB ) . With domestic drilling activity having been fairly weak lately, Halliburton's U.S. concentration has raised concerns among investors, as land-based rig counts have fallen sharply. But with efficiency gains from multi-pad drilling and multi-stage hydraulic fracturing, bulls hope that rig counts don't accurately reflect actual production activity and therefore that Halliburton's earnings will hold up better than some expect.
- [By Luke Jacobi]
Companies that stand to benefit direclty from fracking include Anadarko Petroleum (NYSE: APC), Schlumberger (NYSE: SLB) and Halliburton (NYSE: HAL).
5 Best Valued Stocks To Invest In 2014: Caterpillar Inc.(CAT)
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.
Advisors' Opinion:- [By Charley Blaine]
But keep this in mind: Thirteen of the 30 Dow stocks are still ahead on the year, led by Merck (NYSE: MRK) and Caterpillar (NYSE: CAT), both up about 11.7 percent. Goldman Sachs (NYSE: GS), Visa (NYSE: V) and aerospace giant Boeing (NYSE: BA) are the laggards -- down 13.8 percent, 11.7 percent and 10.6 percent, respectively. More than 230 S&P 500 stocks are still ahead on the year.
- [By Dan Caplinger]
But even with the Dow under pressure, a few stocks managed to post some sizable gains. Caterpillar (NYSE: CAT ) led the Dow's gainers, rising 1.2% as the company announced that it would execute another $1 billion under an accelerated stock repurchase transaction, working with France's Societe Generale to facilitate the purchase. The transaction marks the second time Caterpillar has used the tactic, with a previously announced $1 billion repurchase in April having been completed last month. The moves show how healthy Caterpillar's cash flow is, but it's unclear how well they fit with the company's less optimistic assessment of its long-term earnings outlook.
- [By Dan Caplinger]
Finally, the U.S. dollar finished weaker against the euro and the British pound but strengthened against the Japanese yen. During this earnings season, we've seen many companies struggle due to the impact of the strong dollar on the value of their foreign revenue and earnings. For instance, Caterpillar (NYSE: CAT ) cited what it called a "substantial currency headwind" in its second quarter that weighed on its disappointing results. The company doesn't expect a recurrence of the $134 million in currency-translation and hedging losses it suffered during the quarter, but investors should keep an eye on currency movements and weigh their potential impact on earnings.
5 Best Valued Stocks To Invest In 2014: Tupperware Corporation(TUP)
Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.
Advisors' Opinion:- [By Monica Gerson]
Tupperware Brands (NYSE: TUP) is expected to report its Q3 earnings at $1.03 per share on revenue of $623.34 million.
Varian Medical Systems (NYSE: VAR) is projected to post its Q4 earnings at $1.12 per share on revenue of $779.02 million.
- [By Oliver Pursche]
European large-cap pharmaceuticals like Novartis (NVS) �and Bristol Meyers Squibb (BMY) �count amongst some of our favorite stocks right now, as do U.S. multinationals that are growing revenue and margins in Asia ��Tupperware (TUP) �is a shining example. Stay away from utilities and energy stocks, as they are likely to be the laggards over the next year.
5 Best Valued Stocks To Invest In 2014: Dollar Tree Inc.(DLTR)
Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.
Advisors' Opinion:- [By WWW.DAILYFINANCE.COM]
#fivemin-widget-blogsmith-image-305703{display:none}.cke_show_borders #fivemin-widget-blogsmith-image-305703,#postcontentcontainer #fivemin-widget-blogsmith-image-305703{width:570px;height:411px;display:block} NEW YORK -- The fight for penny pinchers is intensifying. Dollar Tree (DLTR) said Monday it is buying rival discounter Family Dollar (FDO) for $8.5 billion, significantly broadening its reach as it looks to fend off Walmart, which has been stepping up its courtship of lower-income customers The deal makes Dollar Tree the biggest player in the dollar store segment, with its more than 13,000 combined locations eclipsing current leader Dollar General (DG), which has about 11,300. Dollar stores grew during the recession as people across income groups searched for cheaper options. To attract a broader array of customers, they also expanded their offerings to include more groceries and brand-name products, instead of just the party favors and other knickknacks people often associated with them. More recently, however, sales at dollar stores have been suffering because the lower-income customers who go to them are facing persistent job instability and slow wage growth in the aftermath of the recession. Walmart Stores (WMT) and Kroger (KR) also have been opening smaller store formats to directly compete with dollar stores. During its current fiscal year, Walmart plans to open 270 to 300 smaller outlets designed to cater to shoppers looking for more convenience. Brian Sozzi, CEO and chief equities strategist at Belus Capital Advisors, said because the Dollar Tree deal will allow the company to lower expenses by merging its operations, it will ultimately be able to lower prices to better compete with Walmart. "Now they're going to take the fight back to Walmart," Sozzi said. The deal also gives Dollar Tree more flexibility. Dollar Tree is true to its name, with everything in its stores costing just a buck. The fixed pricing has helped attract more customer
- [By Rising Dividend Investing]
Falling Stock Correlation: What It Says About Consumer Spending
As we mentioned in the Take Aways from the August 26th Investment Policy Committee meeting, the correlation index has been steadily declining. In 2008-09, macroeconomic events drove nearly every stock downwards. Specific sectors and stocks moved in tandem with one another. Today, stocks and sub-industries within each sector are performing very differently – which indicates a return to a more normal stock market environment.
The Consumer Discretionary (also known as Consumer Cyclicals) sector is an example of an industry that has been rewarded for its fundamental success over the past 12 months. As a whole, the sector grew sales 6.1% and earnings 9.2% in the second quarter - much better than the 1.4% sales and 3.3% earnings growth of the S&P 500. While the overall sector did well in the second quarter, the table below shows how differently the 5 sub-categories of Consumer Discretionary performed:
(click to enlarge)
As we drill down even further, sub-categories of sub-sectors differ even more dramatically. Below is a snapshot of the Retailing sub-sector and its notable components:
(click to enlarge)
Specific stocks within each sub-category are varying in performance as well. General Merchandise retailers were significantly differentiated in the second quarter. Target’s (TGT) adjusted EPS were up 6.1% from 2012, while Dollar General (DG) and Dollar Tree’s (DLTR) earnings were up nearly 12% and 9%, respectively.
The differences in sales and earnings growth amongst these different industries tell a story. The economy is not improving enough that people feel like they can let go and spend money on pure pleasures, but it is improving enough that they can afford to replace their cars and fix the doors on their houses. As these items wear out and need to be replaced, we expect the pent up demand will drive increased economic activity from cons - [By Lawrence Meyers]
As a convenience store, it doesn’t have direct competition from�Dollar Tree (DLTR) or Family Dollar (FDO) because these dollar stores aren�� exclusively focused on food (and they have no gasoline or cigarette sales), and they��e targeted at the folks who are trying to save money over convenience, not vice versa. The convenience angle is another reason why�Walmart (WMT) and Costco (COST)�aren’t competitors, since those behemoths are about a total shopping experience.
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