• Unemployment claims unexpectedly rose yesterday (Thursday), asthe number of U.S. workers filing new claims jumped by 15,000 in the week ended June 20 to a seasonally adjusted 627,000, the Labor Department reported. The four-week moving average of initial claims, a less volatile measure, rose to 617,250 from 616,750, signaling the U.S. job market is stagnant.

• U.S. gross domestic product (GDP) contracted at a 5.5% annual rate in the first quarter after plunging at a 6.3% pace in the fourth quarter of 2008, the Commerce Department said yesterday (Thursday). That means the U.S. economy just went through itsworst eight-month period in more than 60 years, according toMarketWatch. The government last month estimated GDP fell at a 5.7% pace in the quarter ended March 31.

• American International Group Inc. (NYSE: AIG) will repay part of its $40 billion debt to the U.S. government with $25 billion of preferred stock in two businesses Reuters reported. The two businesses – American International Assurance Co Ltd (AIA) and American Life Insurance Co (Alico) – will also be positioned for initial public offerings, should market conditions permit. AIG lost more than $99 billion in 2008 and U.S. taxpayers have committed up to about $180 billion to its rescue.

• Palm Inc.’s (Nasdaq: PALM) losses grew but it beat Wall Street’s revenue estimates for its quarter ended May 31. The company reported a net loss of $91.5 million, or 78 cents per share on revenues of $86.7 million. That compares to a net loss of $41 million, or 40 cents per share on revenue of $296.1 million for the same quarter last year. Analysts were expecting a loss of 62 cents per share on revenues of $80.6 million.

• Memory chipmaker Micron Technology (NYSE: MU) suffered a wider loss but beat analyst estimates for its quarter ended June 4. The company posted a net loss of $290 million, or 36 cents per share on revenues of $1.1 billion. That compares to a net loss of $236 million, or 30 cents per share on revenues of $1.4 billion in the same period the year before. Consensus estimates placed the loss at 43 cents per share on revenues of $1.1 billion.

• A key senator said the health care proposal submitted to Congress by the Obama administration could cost as much as $1 trillion, but Republicans added there was no agreement on even the outlines of a bill, The Associated Press reported. “We have options that would enable us to write a $1 trillion bill, fully paid for,” Sen. Max Baucus, chairman of the Senate Finance Committee, told reporters. Baucus’ comments came one week after analysts estimated earlier proposals would cost $1.6 trillion over 10 years. While Baucus gave no details, others told The AP changes made in the proposal would lower the cost of government subsidies for those who cannot afford insurance, as well as scale back a planned 10-year series of rate increases for doctors serving Medicare patients. Almost 50 million Americans are without health coverage.

• Michigan has won a competition with two other states to buildGeneral Motors Corp.’s (OTC: GMGMQ) next subcompact car, based on the Chevrolet Spark, The Associated Press reported. The win will save about 1,200 jobs at the factory in Orion Township, which was due to close this year. All 17 members of Michigan’s congressional delegation sent a letter to GM last week saying that the state’s economic woes — including an unemployment rate that hit 14.1% in May — made the project important for Michigan.

Source: Investment News Briefs Friday June 26,2009

With that said, a stock breaking above its 200-day moving average should be viewed as a bullish thing.

Take a look at the chart below of Apple (NASDAQ:AAPL).

As you can see, Apple first plummeted under its 200-day moving average back in September. And it went on to drop nearly 50% within three months.

But just recently, in mid-April, Apple popped back above its 200-day moving average. That was almost ten bucks ago.

The lesson should be clear, buying into a stock that’s crossing its 200-day moving average it typically a good idea (pending a little research on your part).

Some stocks recently crossing their 200-day moving averages are BHP Billiton (NYSE:BHP), Advanced Micro Devices (NYSE:AMD), Micron (NYSE:MU), Toyota Motors (NYSE:TM), and Sony (NYSE:SNE).

• The Organization of Petroleum Exporting Countries, which produces 40% of the world’s oil, is “very likely” to cut its crude production at its next meeting on Nov. 18, according to the group’s President Chakib Khelil. “The Organization is concerned about the deteriorating economic conditions with contagion risks,” OPEC members said today in a statement. The official production quota for 11 of OPEC’s members is 28.8 million barrels a day. The group exceeded that target by 390,000 barrels a day in September, according to Bloomberg estimates.

• Iceland yesterday (Thursday) took control of Kaupthing, the country’s leading bank, and suspended trading on its stock exchange for two days, as it the island country struggled to overcome a financial crisis that could ultimately result in bankruptcy. Iceland’s Financial Services Authority now has control of all three of the country’s major banks.

• New applications for unemployment benefits dropped from a seven-year high last week, according to the Department of Labor. Initial claims for jobless benefits dropped 20,000 to a seasonally adjusted 478,000. However, the four-week average, a more stable indicator, rose to 482,500 – the highest since October 2001.

• Micron Technology Inc. (MU), the largest domestic producer of memory chips, yesterday (Thursday) announced it would reduce its staff by 15% and scale back production levels. Over-production has flooded the market, pushing memory-chip prices below the cost to produce them, Bloomberg News reported. Micron has racked up $1.9 billion in losses over the past two years.

• National City Corp. (NCC) could be the next bank to get bought out by a larger rival as financial firms look to stabilize their capital positions by buying deposit assets at discount prices. PNC Financial Services (PNC) and Toronto-based Bank of Nova Scotia (BNS) are two of the potential buyers for the regional bank, Forbes reported.

• Abercrombie & Fitch Co. (ANF) and The TJX Cos. Inc. (TJX), parent company of T.J. Maxx and Marshall’s, both lowered their profit outlook as retail sector sales continue to worsen. “Consumers are bracing for recession,” Ken Perkins, president of Retail Metrics, wrote yesterday (Thursday) in a report, Bloomberg News reported. “Credit will continue to be very difficult to come by through the holiday-shopping season, and the jobs market is likely to further deteriorate.”

Source: Global Investing Roundups Friday, October 10th, 2008

• Eli Lilly and Co. (LLY) is in advanced talks to acquire ImClone Systems Inc (IMCL) for $70 a share, topping a rival bid from Bristol-Myers Squibb Co. (BMY), the Wall Street Journal reported yesterday (Wednesday). Bristol already owns about 17% of ImClone and has submitted an unsolicited $62-a-share bid of its own for the biotech company.

• CarMax Inc. (KMX) said yesterday (Wednesday) that it will layoff more than 600 employees, or 4% of its total work force, as it struggles with harsh credit conditions and low sales, The Associated Press reported. CarMax shares fell 64 cents, or 4.6%, to close at $13.36.

• Shares of IBM Corp. (IBM) tumbled 6% yesterday (Wednesday), their biggest drop in three years, on speculation that the company failed to meet third-quarter expectations. “There’s unconfirmed speculation that they are going to bring down their numbers for the quarter, that they are going to warn,” Tim Ghriskey, chief investment officer at Solaris Asset Management, told Reuters.

• Micron Technology Inc. (MU) yesterday (Wednesday) posted its seventh consecutive quarterly loss with a net loss of $344 million or 45 cents per share for the fiscal fourth quarter. “The global memory market continues to experience severe oversupply and price degradation,” said the memory-chip maker’s Chief Executive Steve Appleton, The Wall Street Journal reported.

• A study released yesterday (Wednesday) by Consumer Reports found that cereals marketed to children in the U.S. often have more sugar and sodium than their foreign-sold counterparts. Post Golden Crisp from Kraft Foods Inc. (KFT) and Kellogg Co.’s (K) Honey Smacks are both 50% sugar by weight, Reuters reported.

• Auto sales in Canada increased 1.7% in September, Bloomberg News reported. Toyota Motor Corp. (ADR: TM) had a 14% increase, which helped offset declines from both General Motors Corp. (GM) and Ford Motor Co. (F). Car sales climbed 5.1% while light truck sales slipped 2.2%.

Source:Global Investing Roundups Thursday, October 2nd, 2008