Seven Signs That J.C. Penney Company (JCP) Could Be the Next Comeback Kid?

Despite an earnings report showing a half billion dollar loss, troubled retailer J.C. Penney Company, Inc (NYSE: JCP) jumped 8.38% yesterday in large part due to the following signs that could indicate a turnaround is coming: 

Shoplifting is Up. Shoplifting took a full percentage point off the department store chain's profit margins during the quarter. And while that may be interpreted as a good sign that customers are back in the store and (one way or the other) wanting the company's merchandise, its a bit more complicated than that according to the Wall Street Journal. Apparently, sensor tags designed to prevent theft were removed from merchandise because they would have interfered with the radio frequency of new radio frequency identification, or RFID, tags which would introduced to make it easier to manage inventory. J.C. Penney Company is now retagging items on the sales floors with sensors as well as tightening up its returns policy which had encouraged scammers. My Mother is Back in the Store. The return of discounts or sale ads has gotten my mother back into the her local J.C. Penney. Granted, older women were not the demographic that a coastal hipster like Ron Johnson wanted in his stores, but older women tend to have something hipper younger women (especially in this economy) don't have: MONEY…. Sales and Same-Store Sales Rise. Same-store sales rose 0.9% in October. That may not sound great but its also the first same-store sales rise since December 2011. In addition, sales results improved sequentially each month within the third quarter while online sales (on jcp.com) rose 24.5% year over year t0 $266 million.  The Hip Trendy C*** is Being liquidated. It will take awhile to get rid of all the "trendy" inventory that Ron Johnson brought into the store and the company will need to deeply discount what's left to get it out the door, but once its gone – its gone (and not so hip customers like older women will be able to find what they want). So losses should start to ease in coming quarters. Liquidity Problems are Easing. J.C. Penney Company had lined up a $2.25 billion financing package earlier this year, sold nearly $800 million in new shares September to further shore up its finances and stuck to its forecast for more than $2 billion in liquidity at fiscal year-end. So baring a real disaster or credit crunch that hits the whole economy, it looks like J.C. Penney Company is not in danger of running out of cash or financing. Optimistic Forecast. J.C. Penney Company expects comparable store sales and gross margin to improve sequentially and year over year plus the CEO has also expressed optimism about the upcoming holiday season. "Normalization," For Better or For Worst. For what his opinion might be worth, CNBC's Jim Cramer made the following comment after earnings – which can be taken either way by investors:

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"This is the beginning of what I regard as the normalization of J.C. Penney. "We won't be talking about J.C. Penney a year from now—not because they are not thriving or because they are going out of business, but because they're just nothing. They're going to go back to being nothing."

So is J.C. Penney Company finally a buy or a compelling value play? Consider the following long long long term chart for the stock:

Stock splits aside, the stock is trading at levels not seen since 9/11 or the 1980s. Nevertheless, the bearish trend lines on the latest J.C. Penney Company technical chart looks like they might be ready to reverse:

With the above considerations in mind, an investor or speculator with a high tolerance for risk just might want to take a gamble on a J.C. Penney Company turn around.

Top Portfolio Products: First Trust Rolls Out Tactical Commodity Fund

New products and changes introduced over the last week include a strategic commodity-focused fund from First Trust Advisors and a fund of ETFs from Innealta Capital; a robotics/automation index from ROBO-STOX; a new financial planning solution for advisors from SunGard; and a risk management platform from Axioma.

In addition, Aquila reorganized some of its funds into a more unified structure and engaged in other updating, and ProTracker announced a new cloud-based service.

Here are the latest developments of interest to advisors:

1) First Trust Offers Global Tactical Commodity Strategy Fund

First Trust Advisors L.P. announced the launch of First Trust Global Tactical Commodity Strategy Fund (FTGC). FTGC is an actively managed ETF that will seek to provide total return by providing investors with commodity exposure while seeking a relatively stable risk profile by investing up to 25% of its total assets in commodity futures contracts and exchange-traded commodity-linked instruments through a wholly owned subsidiary of the fund.

The rest of FTGC’s assets will primarily be invested in short-term investment-grade fixed-income securities, money market instruments, ETFs and other investment companies, and cash and other cash equivalents.

Rob Guttschow and John Gambla are senior portfolio managers of the fund. The two will primarily be responsible for daily investment decisions under the direction of an investment committee that includes six other individuals with extensive investment experience.

2) Innealta Capital Announces New Fund of ETFs

Innealta Capital, a division of AFAM Capital, announced that it has launched a new mutual fund, the Innealta Risk Based Opportunity Moderate Fund (ROMAX). The fund’s objective is to offer the opportunity for both long-term capital appreciation and income within a single strategy. It operates as a fund of funds and primarily invests in ETFs that are exposed to a variety of asset classes, including equities, fixed income, commodities, currencies and real estate.

The fund seeks to invest in leveraged ETFs in order to free up portfolio collateral, which can then be allocated to high-yield investments deemed by Innealta to possess attractive risk/reward tradeoffs.

3) ROBO-STOX Launches Benchmark Index Tracking Robotics, Automation

ROBO-STOX LLC has announced its launch of the ROBO-STOXGlobal Robotics and Automation Index (ROBO), which tracks the robotics and automation space. The index consists of 77 domestic and foreign robotics and automation companies that meet listing criteria for the S&P DJI Global Broad Market Index.

Since pure-play robotics companies are extremely rare, ROBO-STOX evaluates companies across industries, objectives, geographic locations and market capitalizations to find innovative firms that can fuel productivity and economic growth for years to come.

The composite includes a mixture of “bellwether” stocks (securities of companies that the index committee believes reflect the performance of robotics and automation firms as a whole) and “non-bellwether” stocks (securities of robotics- and automation-related companies the index committee believes will generate higher revenue as their products and services grow).

The index is rebalanced on a quarterly basis, and is usually weighted 40% toward bellwether stocks and 60% toward non-bellwether stocks. Companies can be deleted from the index at any time at ROBO-STOX’s discretion.

4) SunGard Launches Holistic Financial Planning Solution for Advisors

SunGard recently announced the launch of WealthStation CompAct, a financial planning solution that gives advisors the ability to produce results-based, holistic financial plans quickly, simply and interactively. By addressing eight popular financial planning concepts using charts and summary tables, WealthStation CompAct helps advisors take action by simplifying complex information and making financial plans more meaningful to the client.

WealthStation CompAct gives advisors of varying levels of experience the ability to select from the following financial planning concepts in order to produce a basic-level yet comprehensive plan: financial statements, financial priorities, retirement planning, asset allocation, life insurance, education funding, cash/debt management, and accumulation planning.

Although it is compatible with other WealthStation financial planning modules, WealthStation CompAct is a single, standalone application that offers multiple capabilities.

5) Axioma Announces Risk Management Platform

Axioma has entered the multi-asset class risk space with the introduction of Axioma Risk, a next-generation risk-management platform for risk officers, portfolio managers, asset owners and consultants. It delivers risk reporting, risk analysis and decision support for multi-asset class portfolios.

Fully customizable, it supports decisions from a full spectrum of users—from portfolio managers to consultants—so that they can tailor risk reporting and analysis to their specific needs. Users may choose single or multi-step simulations, historical (empirical) simulations, Monte Carlo simulations or linear parametric models.

Multiple built-in options enable users to fine tune analyses and results, and to create stress tests to measure the impact of potential events. Front-office analytics utilize a leading pricing library, and the platform is fully integrated with market data for a turnkey solution for handling exchange-traded and illiquid securities.

6) Aquila Reorganizes Funds, Refreshes Site

The Aquila Group of Funds has reorganized five of its seven municipal bond funds into a series of Aquila Municipal Trust to enable greater efficiency and flexibility in operations and simplify compliance monitoring. While the investment objectives, principal investment strategies and investment management teams of each fund remain unchanged, the names now carry the Aquila brand and are as follows: Aquila Tax-Free Trust of Arizona (AZTFX); Aquila Tax-Free Fund of Colorado; Aquila Churchill Tax-Free Fund of Kentucky; Aquila Narragansett Tax-Free Income Fund; and Aquila Tax-Free Fund for Utah.

In addition, the Aquila Tax-Free Trust of Oregon (ORTFX) has also been rebranded, but is not part of the series; also, the Aquila Three Peaks Opportunity Growth Fund and Aquila Three Peaks High Income Fund are now series of Aquila Funds Trust. While the funds now operate under a new structure, their respective investment objectives, strategies and investment management teams remain unchanged.

Investor communication tools, including the Aquila Group of Funds website along with corporate and fund-related print communication, have been updated as well. The website offers layout and navigation improvements, gives greater visibility to the latest fund information and provides a platform for future communication enhancements.

7) ProTracker Software Announces ProTracker Cloud

ProTracker Software has announced the introduction of ProTracker Cloud, a completely Web-based service, not simply a desktop application in the cloud. Powered by SugarCRM, an open-source database, and enhanced with insights from Mackensen and hundreds of other financial planning practitioners who’ve tested ProTracker products over the years, ProTracker Cloud will reside on Amazon Web Services. The Web-based solution will allow financial advisors to manage their practice and client records from any Internet-connected device.

ProTracker Cloud has a built-in “teams” function, which enables independent broker/dealers and their Offices of Supervisory Jurisdiction (OSJs), as well as independent RIAs, to monitor and manage workflows and client communications. Silos of information can be contained and viewed only by those with set permissions.

Three subscription levels, standard, professional and enterprise, allow different users in a given firm access to functionality appropriate for handling the specific tasks for which they’re responsible, whether purely administrative, managerial or regulatory. Pricing starts at $59 per month, per user, or $708 per year. Subscriptions are month to month, with no minimum period required and no minimum number of users. Conversion services will be available for an additional fee.

Read the Oct. 18 Portfolio Products Roundup at ThinkAdvisor.

Summers' Exit Will Give Mortgage REITs Some Breathing Room

The Federal Reserve was poised to be front and center this week, as it prepares for its Federal Open Market Committee meeting Tuesday and Wednesday. Then, out of the blue, former Bill Clinton Treasury Secretary Larry Summers withdrew his name from the short list of those under consideration to be the next Chair of the Federal Reserve.

The sometimes-brusque politician felt that hearings surrounding his "possible confirmation" would cause too much turmoil, considering concerns regarding his part in deregulating the financial industry under Clinton, as well as some ill-conceived comments regarding women's math aptitude during his Harvard presidency.

Is this bit of news a good thing for mortgage REITs? You bet it is.

More liquidity?
Janet Yellen, the current Vice-Chair of the Fed, now looks to be holding the brass ring. One of the stewards of quantitative easing, Yellen is considered much more dovish than Summers, and more apt to support a slow, well-considered tapering of Federal Reserve monetary easing policies. She has experience in this realm that Summers lacked, and is credited with being aware of the advent of the financial crisis while others seemed oblivious.

This development will likely give battered mREITs like Annaly Capital (NYSE: NLY  ) , Armour Residential (NYSE: ARR  ) , and American Capital Agency (NASDAQ: AGNC  )  a huge boost as investors begin to feel less panic regarding a tapering of the current QE3 program. Markets have responded to the Summers announcement by soaring skyward, apparently feeling relief and confidence about the fate of the taper.

For the heavily agency-weighted trusts above, the news should give them some much-needed respite from falling book values and share prices. Annaly has lost 10% of its value in the past three months, while American Capital Agency has lost almost 5%. Armour has been stung badly, with a nearly 15% drop in share price during that time period. The idea that the Fed will maintain its monthly purchases of mortgage-backed securities backed by agencies Fannie Mae and Freddie Mac -- the type they invest in as well -- will surely be music to their investors' ears.

Not all sewn up yet
There is a chance, however, that Yellen won't be appointed. President Barack Obama was fond of Summers, and may not like the fact that he was effectively forced to withdraw. In that scenario, appointing Yellen may be considered giving the complainers their way. Also, there could be another candidate waiting in the wings: Former Fed Vice Chair Donald Kohn, currently of the Brookings Institution, has reportedly also been interviewed for the slot.

Then again, current chair Ben Bernanke won't be leaving his post until January, and the brouhaha about Summers might have no real effect on this week's FOMC meeting at all.

Right now, however, the market is riding high. The most important thing to remember is that QE3 was never meant to last forever, and the program will, at some point, cease to exist. Before that time, mortgage REITs will experience more pain, but it won't be fatal. Watchful investors planning for the long haul may find themselves able to pick up some of their favorite mREITs at bargain prices.

Income Investors Alert!
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Stock futures mixed ahead of housing market…

Major stock index futures were mixed ahead of the start of regular trading, Thursday.

Dow Jones industrial average index futures were down 0.2% and Standard & Poor's 500 index futures were down 0.2%, while Nasdaq composite futures were flat.

On Wednesday, the Dow ended down 0.25%, while the Standard & Poor's 500 finished up 0.1% and the Nasdaq composite was up 0.4%.

WEDNESDAY: Stocks end mixed: Sluggish '14 continues

Investors will be closely watching economic reports on the housing market as they look for any clues as to where a market that has been flat for 2014 is headed. FHFA home prices and existing home sales reports will come out Thursday, as well as numbers on weekly jobless claims.

Asian markets had a tough day after a report indicated that China's manufacturing, a mainstay of the world's second largest economy, was likely to shrink for the first time in half a year. Japan's Nikkei 225 index dove 125.07 points, 0.8%, to 15,695.89; Hong Kong's Hang Seng index fell 348.35 points, 1.5%, to 22,733.90 points and the Shanghai composite lost 9.57 points, 0.5%, to 2,042.18.

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In Europe, Britain's FTSE and Germany's DAX were down 0.1%, while France's CAC-40 index was up 0.2%.

Contributing: The Associated Press

S&P 500 Gains, Dow Falls as Newest Entry Clobbers Blue Chips

Last September, the folks who manage the Dow Jones Industrial average decided it was time to add some new blood to the venerable blue-chip index.  So in came Goldman Sachs (GS), Visa (V) and Nike (NKE), and out went Bank of America (BAC), Alcoa (AA) and Hewlett-Packard (HPQ).

Bloomberg News

Since the Dow is a price weighted index, the inclusion of Visa, which trades at more than $200 a share, and Goldman Sachs, which trades near $175, at the expense of Alcoa and Bank of America, which trade under $20, changing the stocks that would have the most influence on the index. Before the changes, the three highest priced stocks were International Business Machines (IBM), Boeing (BA) and 3M (MMM). Now they’re Visa, International Business Machines and Goldman Sachs.

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Think it doesn’t matter? Since the changes were made just over four months ago, there have been 12 days when the Dow and the S&P 500 moved in opposite directions; there had been 19 in the previous 12 months.  The 120-correlation between the two indexes, a measure of their tendency to trade in the same direction, has dropped from 96.3% to  93.8%, the lowest since 2006.The Dow has gained 8.3% since the changes were made to the S&P 500′s 9.2% rise.

The impact of the changes between can be seen once again today, where the S&P 500 is up 0.1% to 1,839.72, while the Dow Jones Industrial Average has dropped 78.92 points, or 0.5%, to 16,379, thanks to a big drop in…Goldman Sachs, which has dropped 2.3% to $172.25.

Alcoa, by the way, is up 7.7% to $12.23 today, thanks to a JPMorgan upgrade.

Ford’s Ambitious Plans for 2014: More Cars, Better Quality

Ford Motor Co. (NYSE: F) has an ambitious plan to introduce 23 new vehicles around the world this year. That is the most in a single year in the company’s history. These launches include the redesigned F-150 pickup, unveiled at the Detroit Auto Show, which features military-grade aluminum-alloy body panels that reduce the truck’s weight by nearly 700 pounds and improves fuel efficiency.

The Mustang sports car, another best seller for Ford, has also been revamped, and it will be sold globally for the first time.

This is part of a broader trend in the industry of launching more new vehicles at a faster clip than in years past. Since the 2009 economic downturn, major automakers have launched new models with fewer factories and a smaller supply base. A consequence of this is an elevated the risk of quality problems in the vehicles they produce.

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That is an issue Ford has struggled with over the past few years. The company has fallen in key reliability surveys due to problems with some of its transmissions and its MyFord touch-screen dashboard system. The seven recalls of its Escape crossover since its launch in mid-2012 have been a black eye for Ford, costing it has much as $300 million last year. Last month, Ford warned that such costs would have an impact on its operating margin in North America for 2013.

But Ford is making an all-out push to stamp out problems that have dogged it of late. For instance, the company says it now spends more time conducting research before green lighting a vehicle design. The changes to Ford’s quality process are expected to continue throughout 2014.

Companies can bounce back from quality issues — more importantly the perception of quality issues — as Toyota Motor Corp. (NYSE: TM) proved after problems with unintended acceleration in some of its models.

The U.S. auto market is expected to be more competitive this year as sales growth is likely to slow. A full line up of models is one way car makers try to stay competitive. Volkswagen, one of the largest automakers in the world, struggles in the United States in part because it has a smaller line up than competitors such as Ford and General Motors Co. (NYSE: GM).

Chipotle, Starbucks Gain as William Blair Dubs Them Favorites

William Blair’s Sharon Zackfia, Tania Anderson, and Matthew Curtis use the end of earnings season to take a look at restaurant stocks and fret about recent weakness in sales. They write:

Bloomberg News

With most second-quarter results already reported, aggregate same-store sales trends across the industry accelerated to a 1.5% to 2.0% clip from a weather-affected 0.5% average gain in the first quarter, although two-year comp trends slowed modestly on a sequential basis. Perhaps most concerning was the broader restaurant sales slowdown that occurred in June and seems to have continued into July.

They do, however, note that restaurant stocks should get a boost from lowest expenses. Zackfia and team explain:

On the cost front, restaurant industry wage inflation remains quite manageable at the slowest rate of wage inflation since 2005. Food costs also remain favorable with inflation in the low-single-digit range, while lower-year-over year grain futures are suggestive of continued low commodity inflation into 2014 (particularly given the recent pullback in corn futures, which are now nearly 30% lower versus mid-July).

Their favorites: Chipotle Mexican Grill (CMG) and Starbucks (SBUX). They explain why:

For Starbucks, we anticipate continued potential for earnings upside on remarkably healthy and consistent same-store sales trends (which we believe have continued into the September quarter), with its June quarter comp of 9% leading the entire restaurant industry, despite more than 19,000 global locations. For Chipotle, we remain heartened by strong midsingle-digit same-store traffic gains, with a likely price increase in the first half of 2014 poised to provide upward momentum to estimates, particularly as Chipotle has already absorbed significant commodity inflation that has increased its cost of sales to 33%-plus.

Starbucks has gained 1.3%, while Chipotle has risen 1%. Dunkin Brands (DNKN), which was also mentioned positively for its strong same-store sales, has advanced 0.9%.

Oppenheimer, meanwhile, highlights Darden Restaruants’ (DRI) tough summer. Brian Bittner and Michael Tamas write:

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We reduce 1Q14E EPS (Jun-Aug) to $0.63 vs. Street’s $0.75. Consensus likely to come down to $0.70 range after several outliers in $0.80+ range adjust. We model -3.4% comps for the Big 3 in 1Q14E, vs. sell-side’s current -0.6%…

High shrimp costs add pressure to 1H14 margins before expected relief in 2H. At 10% of COGS, shrimp is largest food cost and is up 40% YoY as bacterial infection has killed shrimp and constrained supplies from Asian shrimp farms. Management believes this specific issue is fixable relatively quickly and price relief could follow.

The analysts also reduced their price target to $54 from $58. Darden’s shares are virtually unchanged.

The various benefits of your Employee Provident Fund

Here are some of these which every subscriber should know-

PF Entitles for Pension Too

There are two elements in EPF- Provident Fund and EPS or Employee Pension Scheme introduced in 1995. The entire contribution of subscriber (12% of basic +DA) goes towards provident fund but from the employer contribution of 12%, 8.33% goes towards EPS (subject to max. Rs 541) and rest added to your provident fund account. The pension on retirement is linked to the number of years in service and the average salary drawn in the year before retirement. This contribution in EPS helps in building a corpus for your pension. Although the maximum pension has been limited to Rs 3500 p.m., it is possible to get a higher pension if employer contributes on basis of employee actual pay and not mandated amount of Rs 6500 p.m. There is also provision in the law where you can receive your EPS money as a lump sum along with your PF. The benefit will be linked to your last year's average salary and number of years in service.  For receiving pension benefits one should be 58 years of age and should have completed 10 years of service without any withdrawal. But there are provisions where if you retire before 58 you will still receive the pension but a reduced amount. Lastly, your family is entitled to the pension if you do not survive the required period, provided they meet some specified conditions.

Insurance Benefit

As per EDLI (Employee Deposit Linked Insurance) scheme, in any organization where group insurance scheme is not available to the employees, the organization has to contribute .5% of monthly basic pay (capped at Maximum Rs 6500) as premium for the life insurance cover. Now, the insurance cover amount is higher of the two: 20 times the average wages of the past 12 months (up to Rs 6,500 per month), i.e. Rs 1,30,000, or the full amount in your PF account up to Rs 50,000 and 40% of the balance amount. For some this may be peanuts but people who work in small enterprises, this amount is good enough to help their family survival.

Special Occasions- EPF at help

There are special occasions in your family or some emergency arises. In case of need of funds and no recourse, EPF comes handy as it gives option to withdraw from the corpus but within a certain limit and by meeting some specified conditions.

1. Goals- Marriage, Education need for self, child or any sibling

In case you have to arrange funds for any of the above need then from your EPF corpus you can withdraw up to 50% of your contribution. Not only this, you can take this benefit three times in your life. However, do remember that for availing this facility you should be in services for at least 7 years. You will have to provide valid documents like marriage card or proof of fee payable to the organization.

2. Your Dream House

You can withdraw from your EPF account for house construction, repair or maintenance or for housing loan repayment. For all of these benefits, there are conditions specified by the organization. If you availed a housing loan and wish to make any repayment, then you can utilize up to 36 months wages from your EPF balance provided you have completed 10 years of service. Similarly, you can also withdraw up to 12 months wages (only once) if you wish to do some alteration or repairing in your existing house. For this you should have completed 5 years of service (10 years for repairing). The number of years of service reduces to five years if wish to purchase/construct a  new plot/house. The maximum you can withdraw is 36 month wages (24 month for plot) but only once. The best part here is that the house can be in name of your spouse or in joint ownership.

3. Medical Emergency

EPF gives benefit for major surgical operations in a hospital or by those suffering from TB, leprosy, paralysis, cancer, mental derangement or heart ailment. You can withdraw up to six times of your salary or the entire contribution made till date, whichever is less. The funds can be utilized for self or family (spouse, children, dependent parents) treatment.

There are other benefits available in EPF like utilizing funds for equipment purchase by physically handicapped, in cases of damage due to natural calamities etc. which one can avail in need. You also have a facility of nominating family members to receive funds after your demise and should be aware that withdrawing EPF after job change is legal only when you are jobless for at least two months. However, with all these benefits do remember that it's a retirement tool and should be utilized only when it is the last option available.

Top Clean Energy Companies To Watch In Right Now

Deutsche Bank announced on Monday that is was maintaining a “Hold” rating on the New Jersey-based electric utility company NRG Energy Inc. (NRG), but went on to lower its price target for the company.

Greg Poole, an analyst with the firm, commented, “NRG has several diverse businesses – generation, retail, solar, clean energy technologies, and now a separate MLP-like income vehicle for contracted assets. This helps to diversify away from the seemingly perennially challenged merchant generation business, but it also results in an increasingly complex story that may pose a challenge for investors and valuation.” As such, Deutsche Bank announced it was lowering its price target from $27 to $26 a share.

Top Clean Energy Companies To Watch In Right Now: Aegon NV (AED)

AEGON N.V. provides life insurance, pension, and asset management products and services primarily in the Americas, Europe, and Asia. The company offers a range of life and protection products, including traditional, universal, endowment, term, employer, and whole life insurance products; and accidental death and dismemberment, critical illness, cancer treatment, disability, income protection, and long term care insurance. It also offers individual savings and retirement products, including fixed and variable annuity products, retail mutual funds, and mortgages; employer solutions and pensions comprising individual and group pensions, as well as 401(k) plans and similar products sponsored by or obtained through an employer; and general insurance products, including automotive, liability, fire protection, and household insurance. AEGON N.V. markets its products directly, as well as through various sales and distribution channels, including independent and career agents, fina ncial planners, registered representatives, independent marketing organizations, banks, broker-dealers, benefit consulting firms, wirehouses, affinity groups, institutional partners, independent managing general agencies, specialized financial advisors, and the Internet. The company was founded in 1900 and is headquartered in The Hague, the Netherlands.

Top Clean Energy Companies To Watch In Right Now: Ishares Nasdaq Biotechnology (IBB)

iShares Nasdaq Biotechnology Index Fund (the Fund) seeks investment results that correspond generally to the price and yield performance of the NASDAQ Biotechnology Index (the Index). The Index consists of securities of NASDAQ-listed companies that are classified according to the Industry Classification Benchmark as either biotechnology or pharmaceuticals, and which also meet other eligibility criteria. The Index is one of the eight sub-indices of the NASDAQ Composite, which measures all common stocks listed on The NASDAQ Stock Market, Inc.

The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. The Fund�� investment advisor is Barclays Global Fund Advisors.

Advisors' Opinion:

• [By John Udovich]

  Yesterday, mid cap biotech stock�United Therapeutics Corporation (NASDAQ: UTHR) soared�30.36% after announced FDA approval of Orenitram as�an oral treatment for pulmonary arterial hypertension (PAH), meaning investors should take a closer look at the stock along with the performance of peers like the iShares NASDAQ Biotechnology Index ETF (NASDAQ: IBB) and the�SPDR S&P Biotech ETF (NYSEARCA: XBI).

• [By Ben Levisohn]

  The iShares Nasdaq Biotechnology ETF (IBB) has gained 46% this year, and that includes the 6% drubbing it’s taken this week. But biotechs are rallying today–the ETF is up 2.2% at 10:28 a.m., so investors need to decide whether they should be using the dip to buy or the bounce to sell.

  Agence France-Presse/Getty Images

  With that in mind, consider the latest report from Citigroup’s Yaron Werber and Jonathan Eckard, “Are We in a Biotech Bubble?,” which hit my in-box late last night. They never really answer the question–do analysts ever?–but they offer some advice to investors wondering what to do now:

  Valuations for the biotech sector have appreciated considerably driven by generalist interest in the sector and growing optimism for pipeline success, drug innovation, and M&A deals. The growth profile of the sector is particularly attractive in an otherwise uninspiring macro growth environment. However, a pullback seemed inevitable as generalists evaluate what they actually own and begin to better factor in the risks involved in the small-/mid-cap sector on the heels of several disappointments. On several parameters, the sector has appeared stretched for several months. Given the recent selloff, we continue to like some of the stocks that are developing innovative products, and offer strong revenue/EPS growth. However, we caution that drug development is challenging and that there should be a better balance between returns and appetite for risks in stocks.

  Werber and Eckard remain bullish on large-cap biotechs. They write:

  While we concede that the valuations for the large-cap group are not cheap, they seem reasonable given the strong fundamentals and robust growth profiles. Given the scarcity of growth stocks in the overall market, we expect these stocks to bounce back once the concerns over the cliff are resolved. But the story looks different for small-/mid-cap stocks where valuations a

• [By Ben Levisohn]

  Shares of the United Therapeutics have surged 23% to $107.65, on what’s looking to be a pretty decent day for biotech stocks. The iShares Nasdaq Biotechnology Index ETF (IBB) has gained 0.9% to $225.75, as Gilead Sciences (GILD) has risen 0.7% to $75.16 and Celgene (CELG) has ticked up 0.4% to $168.09.

5 Best Low Price Stocks To Invest In 2014: PPG Industries Inc.(PPG)

PPG Industries, Inc. manufactures and supplies protective and decorative coatings. The company offers coatings products for automotive and commercial transport/fleet repair and refurbishing, specialty coatings for signs, and light industrial coatings; and sealants, coatings, and technical cleaners/transparencies for commercial, military, regional jet, general aviation aircraft, and transparent armor for military land vehicles. It also provides coatings and finishes for the protection of metals and structures to metal fabricators, heavy duty maintenance contractors, and manufacturers of ships, bridges, rail cars, and shipping containers; and coatings to painting and maintenance contractors. In addition, PPG sells industrial and automotive coatings to manufacturing companies; adhesives and sealants for the automotive industry; metal pretreatments and related chemicals; and coatings and inks for aerosol, food, and beverage containers. Further, it supplies lenses, sunlenses, a nd optical lens materials; amorphous precipitated silicas for tire and battery separator markets; and Teslin substrate used in radio frequency identification tags and labels, e-passports, drivers? licenses, and identification cards applications. Additionally, PPG offers chlor-alkali and derivative products, such as chlorine, caustic soda, vinyl chloride monomer, chlorinated solvents, calcium hypochlorite, ethylene dichloride, hydrochloric acid, and phosgene derivatives to chemical processing, rubber and plastics, paper, minerals, metals, and water treatment industries. It also produces flat glass and continuous-strand fiber glass for commercial and residential construction, wind energy, energy infrastructure, transportation, and electronics industries. PPG sells its products through company-owned stores, home centers, paint dealers, and independent distributors, as well as directly to customers worldwide. The company was founded in 1883 and is headquartered in Pittsburgh, Pe nnsylvania.

Advisors' Opinion:

• [By Dan Caplinger]

  Players throughout the paint industry have seen their prospects rise in light of the housing recovery. In its most recent report, Sherwin-Williams (NYSE: SHW  ) posted record profits and sales for its first quarter, as net income rose 17%. Sherwin projected that revenue growth would likely accelerate during the rest of the year. Fellow competitor PPG Industries (NYSE: PPG  ) also managed to top earnings estimates in its quarterly report last month, although its sales didn't produce the increase that analysts had expected to see.

• [By Monica Gerson]

  PPG Industries (NYSE: PPG) is expected to report its Q3 earnings at $2.34 per share on revenue of $3.96 billion.

  Nucor (NYSE: NUE) is estimated to report its Q3 earnings at $0.39 per share on revenue of $4.78 billion.

Top Clean Energy Companies To Watch In Right Now: SRS Labs Inc.(SRSL)

SRS Labs, Inc., through its subsidiaries, engages in the development and provision of audio and voice technology solutions. The company principally develops and markets audio rendering, voice, and surround sound technologies and solutions to original equipment manufacturers, original design manufacturers, semiconductor manufacturers, and software providers. The company?s portfolio of licensable technologies includes Surround Sound, Audio Rendering, Voice Processing, and Solutions Suite. A surround sound technology, Circle Surround, is an encoding and decoding format. Circle surround encoding enables the distribution of up to 6.1 channels of audio over existing two-channel carriers, such as digital media files, standard definition and high-definition television, FM radio, and compact discs; and Circle Surround decoding decodes Circle Surround encoded material for multichannel playback or creates up to 6.1 channels of audio from older formats of material, including mono, ste reo, 4-channel surround, or other matrix surround formats. Audio Rendering technologies optimize device audio output and enable the presentation of 3D and multichannel audio content over two speakers. Its TruVoice and SRS Noise Reduction technologies reduce noise to produce a clearer dialog over wireless communication devices and improve the intelligibility of the human voice in a variety of listening situations, including high ambient background environments. The company?s solutions suites combine various technologies to deliver a package of post processing audio enhancement products. It serves home entertainment, personal computers, personal telecommunications, automotive, portable media devices, and broadcast markets. The company sells its products and services in Korea, Japan, the Americas, the People's Republic of China, the Asia Pacific, and Europe. SRS Labs, Inc. was founded in 1993 and is headquartered in Santa Ana, California.

Top Clean Energy Companies To Watch In Right Now: Brazilian Real(BK)

The Bank of New York Mellon Corporation, a financial services company, provides various products and services worldwide. The company offers a range of equity, fixed income, cash, and alternative/overlay products, as well as distributes investment management products. It also provides investment management, wealth and estate planning, and private banking solutions to high-net-worth individuals and families, charitable gift programs, endowments and foundations, and related entities, as well as offers mutual funds, separate accounts, and annuities. In addition, the company provides global custody and fund, securities lending, investment manager outsourcing, performance and risk analytics, alternative investment, securities clearance, collateral management, corporate trust, broker-dealer, and employee investment plan services, as well as clearing services and global payment/working capital solutions to institutional clients. Further, it offers American and global depositary re ceipt programs, cash management solutions, payment services, liquidity services, foreign exchange, global clearing and execution, managed account services, and global prime brokerage solutions to corporations, public funds, government agencies, foundations, and endowments; global financial institutions, including banks, broker-dealers, asset managers, insurance companies and central banks; and financial intermediaries, independent registered investment advisors, and hedge fund managers. Additionally, the company provides credit-related services, and global markets and institutional banking services; engages in business exits, and corporate treasury activities; and leases financing portfolios. The Bank of New York Mellon Corporation was founded in 1784 and is headquartered in New York, New York.

Advisors' Opinion:

• [By John Grgurich]

  All parties -- which includes AIG (NYSE: AIG  ) , BlackRock (NYSE: BLK  ) , PIMCO, and Bank of New York Mellon (NYSE: BK  ) -- had previously agreed to a B of A payout of $8.5 billion to settle the claims. But a challenge to the settlement has thrown the case back into court, and now B of A could be on the hook for tens of billions.

• [By Anders Bylund]

  When it comes to common equity as a ratio of total assets, the news becomes a bit gloomier. The Bank of New York Mellon (NYSE: BK  ) falls below the 4.5% target level with a 3.5% performance, and the other banks also skim a bit closer to the ground. This is where you measure the risk of overstretching your balance sheet, as applied to the company's investors. Citigroup (NYSE: C  ) runs away with this trophy, and it should come as no surprise that Citi's shares jumped nearly 2% this morning. The bank aced a crucial exam here.

• [By John Grgurich]

  Regarding B of A itself, investors are waiting to hear the outcome of a trial currently under way in New York. The judge's decision will determine if an $8.5 billion settlement made in 2011 with Bank of New York Mellon (NYSE: BK  ) and bond giants BlackRock (NYSE: BLK  ) and PIMCO will stand, or if the superbank will suddenly find itself on the hook for potentially tens of billions more.

Top Clean Energy Companies To Watch In Right Now: Tufco Technologies Inc.(TFCO)

Tufco Technologies, Inc., together with its subsidiaries, provides integrated manufacturing services in the United States. The company offers contract manufacturing and specialty printing services. Its services include wet and dry-wipe converting, wide web flexographic printing, hot melt adhesive laminating, folding, integrated downstream packaging, and quality and microbiological process management. The company involved in the contract manufacture of products from various materials, such as polyethylene films, nonwovens, papers, and tissues. Its products comprise disposable wet and dry wipes for home, personal/baby/medical care use, flexible packaging, and disposable table covers. The company also manufactures and distributes business imaging paper products. It converts a range of paper products, including specialty and fine printing papers, thermal papers, inkjet papers, and coated products for use in retail, convenience store, restaurant, dry cleaning, and bank applicat ions. In addition, the company provides business forms products in laser cut sheets and multi-part forms; wide format rolls for drafting and architectural applications; printed and unprinted paper products used in business imaging equipment in market segments comprising architectural and engineering design, high speed data processing, point of sale, automatic teller machines, and office equipment; and various products for the restaurant market, such as children?s placemats, crayons, and guest checks. It markets its products and services through its sales and customer service employees, manufacturer?s representatives, and distributors to multinational consumer products companies, and dealers and distributors of business imaging papers. The company was founded in 1974 and is headquartered in Green Bay, Wisconsin.

Double Trouble Comes To 3D Printing

3D printing is supposed to be the next big thing. We have noted earlier that it has been called the next bubble  by some investors. Unfortunately, two 3D printing outfits have issued cautious guidance in the last twenty-four hours. The first was Stratasys Ltd. (NASDAQ: SSYS), and now we have a warning from The ExOne Company (NASDAQ: XONE). 3D Systems Corp. (NYSE: DDD) managed to escape the carnage on Tuesday during the day, but that appears to no longer be the case.

ExOne said that it now expects 2013 revenue to be in the range of $40 million to $42 million. This is lower than the prior revenue guidance of about $48 million. It said, “The shortfall primarily relates to machine sales not yet completed for customers in Russia, India, Mexico and France, some of which involve approval processes that were deferred into 2014. The specific machines to be sold are four S-Max™ and one S-Print™. is being hurt by its 2014 guidance.”

Stratasys said before ExOne’s confessional session that its full 2014 earnings would come in at $2.15 to $2.25 per share, shy of the $2.35 consensus estimate. Revenue was put in a range of $660 to $680 million versus its prior estimate of almost $656 million. Stratasys was a scenario where operating expenses are rising handily. The company has lifted its sales and marketing investments and boosted its research and development expenses.

Best China Companies To Invest In 2014

What The ExOne Company signaled is that it has not lost a single order and that certain 2013 machine sales now expected in first half of 2014. ExOne said that it still expects 40% to 50% in organic growth. Stratasys warned that 2014 would be back-end loaded.

Our question is simple yet complex – What happens if more issues arise between now and the second half of 2014?

Stratasys Ltd. (NASDAQ: SSYS) was the big loser on Tuesday with an 8.2% drop down to $119.37. Its stock is now down almost $20 from its all-time high of $138.10 put in recently. ,

The ExOne Company (NASDAQ: XONE) shares closed down almost 5.4% at $62.26 on Tuesday, putting its stock now down close to $17 from its recent high of $78.80. ExOne shares were down 14% at $53.00 in late Tuesday trading after the close.

3D Systems Corp. (NYSE: DDD) shares closed down only 0.4% at $91.21 on the day, about $6 short of its all-time high of $97.28. Unfortunately, the sector leader saw its stock price drop almost 4% more in the after-hours session down to $87.63.

Voxeljet AG (NYSE: VJET) is the most recent of the 3D printing stocks, and it has larger international exposure. This one fell 1.6% to $42.43 on Tuesday and is already down sharply from the $70 post-IPO high. Shares are unfortunately getting hit even more with a drop of over 6% down to $39.50.

 

Stocks Hitting 52-Week Highs

Novavax (NASDAQ: NVAX) shares surged 9.85% to touch a new 52-week high of $5.69 after the company announced the continuation of RSV Vaccine Partnership with Path.

XOMA (NASDAQ: XOMA) shares reached a new 52-week high of $8.61. XOMA shares have jumped 196.09% over the past 52 weeks, while the S&P 500 index has gained 25.27% in the same period.

Red Hat (NYSE: RHT) shares touched a new 52-week high of $59.28 after Morgan Stanley upgraded the stock from Equal-weight to Overweight.

Juniper Networks (NYSE: JNPR) shares jumped 7.98% to reach a new 52-week high of $25.41 following Elliott headlines.

Posted-In: 52-Week HighsNews Intraday Update Markets Movers

(c) 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  Most Popular Earnings Expectations For The Week Of January 13: Big Banks, GE, Intel And More UPDATE: Stifel Downgrades Cree on Recent Performance UPDATE: JMP Securities Reiterates Coverage on ARIAD Pharmaceuticals, Sees Market Share Regain UPDATE: Bank of America Upgrades MGM Resorts International, Has Bullish 2014 Outlook Coming Soon: 3D Printing for Everyone Alcatel-Lucent CEO Says China to Become World's Largest 4G Market Related Articles (JNPR + NVAX) Market Wrap For January 13: Markets Showing Weakness Ahead Of Major Earning Releases Novavax Announces Management Promotions Elliott Management Sees Shares of Juniper Networks' Worth $35 to $40 Stocks Hitting 52-Week Highs Top Performing Industries For January 13, 2014 UPDATE: Elliott Management Announces Value Plan for Juniper Networks Around the Web, We're Loving... Lightspeed Trading Presents: Thunder and Tubleweeds: Trading Techniques for the New Market Enviroment Pope Francis Rips 'Trickle-Down' Economics Come See How the Pro's Trade in this Exclusive Webinar Wynn, MGM, Other Casino Giants Vying For U.S. Turf What Should You Know About AMZN? View the discussion thread. Partner Network View upcoming Earnings, Ratings, Dividend and Economic Calendars.

Dollar ends week with a loss after U.S. jobs data

NEW YORK (MarketWatch) — The U.S. dollar gave up gains on Friday, pushing it to a weekly loss against major rivals, after the American economy in December saw the smallest monthly job gain in three years.

The economy created 74,000 jobs last month, sharply lower than the gain of 193,000 expected by economists polled by MarketWatch. The December increase was the smallest since the beginning of 2011. The report also showed the unemployment rate dropped to 6.7% from 7%.

AFP/Getty Images Enlarge Image

The ICE dollar index (DXY) , a measure of the greenback against six other currencies, fell to 80.646 from 80.978 late Thursday. The index had touched an intraday high of 81.14 just ahead of the report, according to FactSet. Friday's move lower pushed the dollar index to a weekly loss of 0.2%.

The WSJ Dollar Index (XX:BUXX) , a rival gauge of the dollar's strength, fell to 73.86 from 74.25.

The Federal Reserve said in December that it will start reducing the pace of monthly bond purchases by $10 billion a month to $75 billion, which implies that the central bankers believe the economy can withstand the withdrawal. Minutes from the Fed's meeting indicate that officials believed the benefits of its stimulus program were declining. The Fed's bond purchases have been understood to weigh on the dollar.

Investors had been looking to the jobs report, the first since the Fed decided to reduce its monthly bond purchases, for clues on the speed of potential further reductions in purchases. But Win Thin, global head of emerging market currency strategy at Brown Brothers Harriman, emphasized that the central bank needs a series of data points before changing its course.

"The Fed can't just react to month-by-month numbers," said Thin, adding that he expects the Fed to continue reducing its bond purchases by another $10 billion at its next meeting.

The weather may have caused distortions in the jobs data, which was another reason to take the report with a grain of salt, analysts said.

Click to Play December jobs growth disappoints

The Labor Department said U.S. payrolls rose by 74,000 in December and the unemployment rate fell to 6.7% from 7%. Expectations were for 200,000 new jobs to be created with the unemployment rate sticking at 7.0%. Sudeep Reddy and Phil Izzo report. Photo: Getty.

"Everything we know about the U.S. economy — the totality of all the numbers — suggests that Q4, including December, was showing a bit of momentum," said Richard Franulovich, chief currency strategist for the northern hemisphere at Westpac Banking Corp.

Investors should watch next week's retail sales and January's jobs report for a read on the economy. "A soft retail sales number and another weaker payrolls is going to be a concern for the dollar," he said.

The decline in the unemployment rate to 6.7% could also attract attention in light of last month's conversation at the Fed about lowering the 6.5% unemployment threshold for raising rates. The minutes of the December meeting showed that only a few voting members wanted to lower the threshold to 6%, with dissenters saying the change could chip away at the bank's credibility. The bank has emphasized that it is in no hurry to raise rates.

The euro (EURUSD) jumped to $1.3667 from Thursday's $1.3596, ending the week with a 0.6% gain against the greenback. European Central Bank President Mario Draghi on Thursday emphasized what could cause the central bank to ease further, in a dovish press conference following the ECB's decision to keep interest rates unchanged.

"The divergence of the monetary-policy trajectory should eventually be dollar positive, but we're not quite there yet," said Thin of Brown Brothers Harriman.

The British pound (GBPUSD) was little changed at $1.6481 from late Thursday's $1.6479. For the week, the pound was up 0.4% against the dollar. Industrial output in the U.K. was flat in November from the previous month, missing expectations of a 0.4% rise.

The dollar (USDJPY)  dropped to ¥104.08 from ¥104.79. The dollar fell below the ¥104 level a few times Friday, pushing it to a 0.7% weekly loss against the yen.

The Australian dollar (AUDUSD)  rose to 89.95 U.S. cents from 88.90 U.S. cents late Thursday, for a weekly gain of 0.6% against the greenback. Data from China, Australia's largest trading partner, for December's exports and trade surplus missed expectations.

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Investors bet on rate hikes as bond market tests Fed

Participation rate in labor force matches 35-year low: Charts

Companies Outwit the Tax Man, Yet Again

How much is too much to pay in corporate tax? For Starbucks (NASDAQ: SBUX  ) , the answer used to be "any." The company managed to go five years without paying corporate tax in the U.K. because the business wasn't profitable. On Sunday, it broke the streak and forked over 5 million pounds in taxes to the British government.

The company released a statement with the payment, clarifying that it was the voice of customers, not the condemnations of the Prime Minister, that caused it to take such a generous view toward taxation. In fact, the company pointed out that it was really doing everyone a favor, since it "decided to forgo certain deductions" just so it could pay its loyal customers back. How sweet.

The tricks of the trade
The British coffee game has a decent number of players, and while Starbucks is a leader, it's by no means the out-and-out dominator that it seems to be in the United States. But that position isn't the reason Starbucks has had trouble being profitable. The problem is the European Economic Zone and the Netherlands.

Starbucks' British operation is a separate business, wholly owned by Starbucks. That U.K. business is overseen by Starbucks Coffee EMEA, based in the Netherlands. For Starbucks in the U.K. to use the Starbucks logo, name, and intellectual property, Starbucks EMEA charges Starbucks U.K. a royalty fee. As it turns out, that fee -- along with beans, milk, rent, and all the usual costs -- means that the U.K. business can't seem to turn a profit. Dang.

Now, as a complete coincidence, the Netherlands doesn't charge a withholding tax on royalty payments. So Starbucks EMEA can take all that cash from the U.K., and send it off to Starbucks global. It pays no tax in the U.K. because of the losses incurred for sending cash to the Netherlands, where is receives favorable tax treatment on the income that it then sends off to its parent.

The other players
The 10 million pounds that Starbucks is planning to pay this year in taxes to the U.K. will more than double the total tax paid by the company since it started operating in Britain. In the company's defense, it's been running this unprofitable business since only 1998 -- 15 years. Up to this point, the company has paid just 8.6 million pounds. The push from its customers finally put Starbucks over the edge, it seems, and the company has committed to paying another 10 million pounds next year.

Amazon.com (NASDAQ: AMZN  ) and Google (NASDAQ: GOOG  ) have also been named and shamed by the British government for their tax practices. Last month, it came to light that Amazon paid less in tax last year than it received in government grants -- 2.4 million pounds versus 2.5 million pounds. The small payout was due to the company's corporate structure, and the European business is based in Luxembourg, even though it employs 11 times as many people in the U.K.

Google has also been faulted, having made $18 billion in revenues over a five-year period and paying out only $16 million in taxes. Earlier this month, a U.K. watchdog organization said that Google should be "fully investigated" because of its low payments. 

The bottom line
As I mentioned, the problem isn't really the companies. Sure, they could pay more taxes voluntarily, but that doesn't make sense -- they are, after all is said and done, businesses. The problem is that Europe doesn't have anything approaching a common system for taxation, and the European Economic Zone makes it easy for companies based in one place to do business in another. Cash crosses borders with almost no resistance, and governments have no idea what's walking out the door.

I think Starbucks' recent move is a bit melodramatic, but in a way the company is fair to make the point. It's paying taxes because it chooses to, not because it has to. Until the U.K. can see that that is the underlying issue, companies are going to continue sending cash everywhere but to the tax man.

How you can pay less to the tax man
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