Federal Gov't Seeks More Support for Poor Borrowers

Andrew Harrer/Bloomberg via Getty ImagesA "Making Home Affordable" sign hangs inside Freddie Mac headquarters in McLean, Va. WASHINGTON -- The regulator for U.S. housing finance giants Fannie Mae and Freddie Mac said Friday it wants the two firms to provide more support to some low-income Americans taking out mortgages and refinancing their home loans. The Federal Housing Finance Agency released proposed goals for the two state-owned firms for 2015-2017 that would advance agency chief Mel Watt's aim to widen access to housing credit. The FHFA said it wants Freddie Mac, which is second only to Fannie Mae in the amount of housing finance it provides, to gradually expand the number of loans it backs for low-income multifamily buildings, such as apartment buildings, to 230,000 in 2017 from its target of 200,000 this year. Fannie Mae and Freddie Mac have been owned by the U.S. government since taxpayers bailed them out in 2008 during a housing market implosion. The two firms don't lend money directly, but rather buy mortgages from lenders and sell them as packaged securities with a government guarantee. They back most new U.S. mortgages, and their purchases are a major driver of credit access. Under the FHFA proposal, the two firms would continue to make sure low-income families accounted for 23 percent of the firms' purchases of single-family home mortgages. However, the firms would raise the share of their purchases that back mortgages in low-income areas with large minority populations. The proposal would also have the firms increase the share of their mortgage refinancing operations that target low-income Americans. The proposal is part of the shift at the FHFA that began in January when Watt took the helm. Watt, a Democrat who was nominated to head the agency by President Barack Obama, mothballed his predecessor's plans to scale back limits on the sizes of loans backed by Fannie Mae and Freddie Mac. Boosting support for low-income borrowers could stir controversy in the U.S. Congress. Many Republican lawmakers think Fannie Mae and Freddie Mac's policies to support mortgage access for the poor helped inflate the U.S. housing bubble that eventually burst around 2006.

Top Performing Industries For August 22, 2014

Related ACCO Top Performing Industries For August 21, 2014 Danger Zone: Newell Rubbermaid (NWL) Related VJET 3D Stocks Rise Following Meg Whitman CNBC Comment 3D Systems Continues Acquisition Spree, Buys APP and APM

At 11:40 am, the Dow dropped 0.18% to 17,009.07, the broader Standard & Poor's 500 index moved down 0.19% to 1,988.55 and the NASDAQ composite index rose 0.10% to 4,536.58.

The industries that are supporting the market today are:

Office Supplies: This industry rose 2.80% by 11:40 am ET. The top performer in this industry was ACCO Brands (NYSE: ACCO), which gained 4.5%. On Thursday, ACCO Brands announced a $100 million share repurchase authorization..

Computer Peripherals: The industry gained 2.02% by 11:40 am. The top performer in this industry was Voxeljet AG (NYSE: VJET), which gained 7.1%. Voxeljet's trailing-twelve-month revenue is $16.81 million.

Electronics Stores: This industry moved up 1.63% by 11:40 am. The top performer in this industry was GameStop (NYSE: GME), which gained 6.1%. GameStop reported upbeat results for its fiscal second-quarter.

Gold: This industry jumped 1.20% by 11:40 am. The top performer in this industry was Sibanye Gold (NYSE: SBGL), which rose 3.2%. Gold futures gained 0.44% to trade at $1,281.00 an ounce.

Posted-In: Top Performing IndustriesNews Intraday Update Markets Movers

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  Related Articles (GME + ACCO) 14 U.S. Stock Declaring Increases In Quart

Bank of America Settlement Removes Overhang, Still a Buy, Citigroup Says

Citigroup’s Keith Horowitz explains the impact of Bank of America’s (BAC) $17 billion settlement on its earnings:

AP

We lower our 3Q estimate 36c to a $0.07 loss on higher litigation costs (we already had $1.2 bil of litigation in our 3Q14 estimate), partly offset by $200 mil in better NII on slower premium amortization due to lower yields. We lower our 2014 estimate 35c to $0.40 with the impact from the settlement partly offset by lower litigation costs in 4Q. We raise our 2015 estimate 5c to $1.55 on lower litigation costs, which we now see normalizing at $1.0 bil per year…

The settlement today removes a large legal overhang on the stock. From here we expect the focus will shift to the fundamental drivers, including cost savings and a balance sheet well-positioned for an eventual rise in interest rates. Target remains at $19; Maintain Buy.

Shares of Bank of America have gained 3.5% to $16.06 at 2:36 p.m. today. They’ve also helped give other big banks a boost: Citigroup (C), for instance, has risen 2.3% to $50.97, JPMorgan Chase (JPM) has advanced 1.6% to $58.58 and Wells Fargo (WFC) is up 0.9% at $51.31.

3 Stocks Rising on Big Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

 

 

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

 

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

 

 

With that in mind, let's take a look at several stocks rising on unusual volume recently.

 

Anacor Pharmaceuticals

 

Anacor Pharmaceuticals (ANAC), a biopharmaceutical company, focuses on discovering, developing and commercializing novel small-molecule therapeutics derived from its boron chemistry platform. This stock closed up 6.6% to $16.90 in Monday's trading session.

 

Monday's Volume: 2.22 million

Three-Month Average Volume: 425,667

Volume % Change: 412%

 

From a technical perspective, ANAC gapped sharply higher here back above both its 50-day moving average of $15.97 and its 200-day moving average of $16.50 with monster upside volume. This stock recently formed a double bottom chart pattern at $14.95 to $15.11. Since tagging that bottom, shares of ANAC have started to rip higher and move within range of triggering a big breakout trade. That trade will hit if ANAC manages to take out Monday's intraday high of $17.03 to $17.62 and then once it clears more near-term overhead resistance at $18.73 with high volume.

 

Traders should now look for long-biased trades in ANAC as long as it's trending above Monday's intraday low of $16.15 and then once it sustains a move or close above those breakout levels with volume that hits near or above 425,667 shares. If that breakout kicks off soon, then ANAC will set up to re-test or possibly take out its next major overhead resistance levels at $21.27 to $23.07.

 

Imax

 

Imax (IMAX), together with its subsidiaries, operates as an entertainment technology company specializing in motion picture technologies and presentations worldwide. This stock closed up 2.8% at $25.31 in Monday's trading session.

 

Monday's Volume: 916,000

Three-Month Average Volume: 494,841

Volume % Change: 84%

 

From a technical perspective, Imax gapped notably higher here with above-above volume. This stock has been downtrending for the last few weeks, with shares moving lower from its high of $26.68 to its recent 52-week low of $24.01. During that move, shares of IMAX have been consistently making lower highs and lower lows, which is bearish technical price action. That move pushed shares of IMAX into oversold territory, since its relative strength index reading recently dipped below 30. That said, shares of IMAX are now starting to bounce off its 52-week low and off oversold levels with strong upside volume.

 

Traders should now look for long-biased trades in IMAX as long as it's trending above Monday's intraday low of $24.85 or above its 52-week low of $24.01 and then once it sustains a move or close above Monday's intraday high of $25.44 to around $26 with volume that this near or above 494,841 shares. If that move starts soon, then IMAX will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $26.48 to its 200-day moving average of $27.51, or even $28 to around $29.

 

Cameco

 

Cameco (CCJ) produces and sells uranium worldwide. This stock closed up 4.2% at $21.28 in Monday's trading session.

 

Monday's Volume: 4.89 million

Three-Month Average Volume: 1.70 million

Volume % Change: 160%

 

From a technical perspective, CCJ trended sharply higher here back above its 200-day moving average of $20.60 with strong upside volume. This stock recently broke out above some near-term overhead resistance levels at $20.10 to $20.18 with strong upside volume flows. Market players should now look for a continuation move to the upside in the short-term if CCJ manages to clear Monday's intraday high of $21.29 with high volume.

 

Traders should now look for long-biased trades in CCJ as long as it's trending above Monday's low of $20.40 or above its 50-day moving average of $19.63 and then once it sustains a move or close above $21.29 with volume that hits near or above 1.70 million shares. If we get that move soon, then CCJ will set up to re-test or possibly take out its next major overhead resistance levels at $23.48 to $24.85, or even $25.59.

 

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

 

-- Written by Roberto Pedone in Delafield, Wis.

 

RELATED LINKS:

 

>>4 Hot Stocks to Trade (or Not)

 

>>5 Stocks Ready for Breakouts

 

>>5 Stocks Ready to Pay You More

 

Follow Stockpickr on Twitter and become a fan on Facebook.

 

At the time of publication, author had no positions in stocks mentioned.

 

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

Shark Sightings Off Cape Cod Give Tourism a Big Boost

Steven Senne/APA bin filled with plastic toy sharks at a souvenir shop in Chatham, Mass. CHATHAM, Mass. -- In "Jaws," the fictional mayor tried to protect the summer tourism season by keeping a lid on reports of the man-eater lurking offshore. As sightings of great white sharks mount off Cape Cod in real life, however, businesses in the Massachusetts town of Chatham are embracing the frenzy. Shark T-shirts are everywhere, "Jaws" has been playing in local theaters and boat tours are taking more tourists out to see the huge seal population that keeps the sharks coming. Harbormasters have issued warnings but -- unlike the sharks in the movies -- the great whites generally aren't seen as a threat to human swimmers. Among the entrepreneurs is Justin Labdon, owner of the Cape Cod Beach Chair Co., who started selling "Chatham Whites" T-shirts after customers who were renting paddle boards and kayaks began asking whether it was safe to go to sea. "I mean, truthfully, we've probably grown about 500 percent in terms of the sale of our shark apparel," he said. The T-shirts, hoodies, hats, belts, dog collars and other accessories bear the iconic, torpedo-shaped image of great whites and sell for between $10 and $45. He said his store brings in thousands of dollars in sales of the shark-themed merchandise. Tourists peer through coin-operated binoculars in hopes of catching a glimpse of a shark fin from the beaches of Chatham. The posh resort town is on the elbow of the cape that has a large population of gray seals -- the massive animals whose blubber is the fuel of choice for great white sharks. Local shops sell jewelry, candy, clothes, stuffed animals and beverages with shark motifs. A study released last month by scientists at the National Oceanic and Atmospheric Administration found the number of great white sharks off the Eastern U.S. and Canada is surging after decades of decline. Conservation efforts and the greater availability of prey such as Massachusetts' seals, are credited with the reversal. Shark sightings have soared from generally fewer than two annually before 2004 to more than 20 in each of the last few years off Cape Cod, where the economy depends heavily on the summer tourism season. Despite notices urging boaters and swimmers to use caution, the official reaction has been nearly the opposite of the panic depicted in "Jaws," the 1975 film shot mainly on the Massachusetts island of Martha's Vineyard. "White sharks are this iconic species in society and it draws amazing amounts of attention," said Gregory Skomal, a senior marine fisheries biologist who also leads the Massachusetts Shark Research Program, who said people are coming in hopes of witnessing the animals in their splendor. "I have not been approached by anyone who has said to me 'let's go kill these sharks.' " Skomal said sharks have been coming closer to shore to feed on the seals, which he said have been coming on shore in greater numbers because of successful conservation efforts. Confrontations with people are rare, with only 106 unprovoked white shark attacks -- 13 of them fatal -- in U.S. waters since 1916, according to data provided by the University of Florida. Still, officials are wary of the damage that could be done to tourism if one of the predators bites a person. Brochures have been distributed to raise awareness of sharks and safe practices in the event of a sighting. "You have to make sure people understand," Cape Cod Chamber of Commerce CEO Wendy Northcross said, "if they go to the beach and they see a family of seals there, that's probably not the best place to hang out." Laurie Moss McCandless of Memphis, Tennessee, has vacationed on Cape Cod every summer since she was a little girl and doesn't remember hearing about sharks back then. But her son is obsessed with sharks, she said, and she's hoping to hear more about them on their vacation in Chatham.

Jeremy Grantham: Market Decline ‘Not Imminent’

Jeremy Grantham, famous for growling gloomy forecasts is surprisingly sanguine in the face of a stock market that keeps on testing new highs and hasn’t seen a 10% correction since 2011.

The Grantham, Mayo, Van Otterloo & Co. hedge fund manager refers to himself as a “value-driven bear,” most likely as part of his general personality, but he musters little but the case for bullishness in his new quarterly investment letter.

The widely followed GMO manager notes the apparent strangeness of the market’s unrelenting rise despite a shocking -2.9% Q1 GDP growth (“forecast by no one,” he adds), a decline in corporate earnings and “very low” market volatility despite “Middle Eastern problems.”

Adding that the rise comes despite a January rule market effect that would predict a negative market and another Wall Street rule—the dread of a presidential third year—just three months away reinforces his recent forecast that the S&P 500 must wend its way up to 2,250, minimally, before the bubble is fully blown.

A further contrarian indicator of bullishness is the voluminous surge in financial deals—“a veritable explosion, to levels never seen gefore,” Grantham writes.

Corporations are engaged in M&A because the cost of debt is lower than in previous deal frenzies and profit margins remain “at very high levels and are widely expected to stay there.”

Compelling as that may be, the hedge fund manager is even more impressed with the fact that the economic recovery, to him, appears quite young.

Grantham draws that conclusion based on the room he sees for a growing economy to draw discouraged workers back to jobs, foreseeing the possibility of a 2% increase in the labor participation rate; he similarly envisions space for a robust increase in capital spending, which he bases a pace of capital spending that has “never, ever” been so slow.

All this points to an economic recovery “that seems to have enough slack to keep going for a few years,” Grantham writes.

The money manager forecasts the next year or two will see all previous deal records broken.

“This of course will help push the market up to to true bubble levels, where it will once again become very dangerous indeed,” he writes.

But market bears be warned: “Perhaps the single best reason to suspect that a severe market decline is not imminent is the early-cycle look that the economy has,” Grantham writes.

Based on Friday’s S&P 500 close of 1,978, stocks can gain another 14% before passing Grantham’s minimum threshold for a fully formed bubble.

In that forecast, released May 1, Grantham was expecting the market to reach that lofty level some time around the fourth quarter of 2016. He did not say in his current letter whether he expects the market peak to come any sooner based on the stock market’s surge over the past quarter.

Fueling market speculation until the bubble gets fully blown is Fed Chairman Janet Yellen’s easy money policy, which Grantham says, critically, follows the pattern of her predecessors Alan Greenspan and Ben Bernanke.

Grantham calls that policy an “affirmation of moral hazard,” which he characterizes as “we will not move to stop bubbles, dear investors, but will help you out when things go badly wrong.”

The money manager and environmental activist devotes most of his letter, as he frequently does, to sundry other topics including Malthusian economics, the Keystone Pipeline and to the story of an early financial wipe-out that forever turned him away from speculation and formed him as a “patient, long-term value investor.”

Kinder Morgan’s New Path

Kinder Morgan is a pioneer in the rapidly growing niche of energy master limited partnerships (MLPs). But the company reversed course this week, and announced that it will put all of its MLP assets into its traditional C corporation, Kinder Morgan Inc. (NYSE: KMI).

Kinder Morgan’s various companies operate a huge network of “midstream” assets: pipelines and terminals that move and store oil and natural gas. The company is a direct, lower-risk beneficiary of the new energy boom in the U.S.

In a $44 billion deal, general partner Kinder Morgan Inc. (KMI) will acquire the outstanding shares of Kinder Morgan Energy Partners LP (NYSE: KMP), Kinder Morgan Management LLC (NYSE: KMR) and El Paso Pipeline Partners LP (NYSE: EPB).

The new Kinder Morgan Inc. (KMI) will have an estimated enterprise value of about $140 billion—$100 billion of market value and $40 billion of debt—making it the third-largest energy company in the U.S., after ExxonMobil and Chevron.

As of the announcement, the deal valued KMP and KMR at $90 per unit, and EPB at $39. All are significant premiums over their prices before the announcement. However, KMP, KMR and EPB now are trading well above those levels, as is KMI.

Richard Kinder, co-founder and chief executive of Kinder Morgan, basically set in motion the increasingly popular MLP structure in the 1990s. MLPs pay no corporate taxes and distribute their profits to unit holders.

MLPs over time have delivered high, growing payouts, which have fueled price appreciation too. The number of MLPs has grown from just 38 a decade ago to 120 now, with a combined market value of some $600 billion.

But KMP, the biggest MLP of all ($45 billion market value), in particular has had two problems. MLPs need to constantly buy or build new assets in order to keep increasing their high distributions to investors. But KMP had grown so large that it was ! hard to find suitable targets.

Second, KMP has been paying such large distributions that it has been increasingly difficult to finance big transactions or new projects. And almost half of those cash payouts are going to KMP’s general partner, KMI, as incentive distribution rights (IDRs). That also has limited distribution growth for other investors.

The slower distribution growth rate compared with other MLPs has hurt KMP’s performance. Before the announcement, KMP had delivered a total return of 38% over three years, compared with 76% for the Alerian MLP Index.

Kinder Morgan says this move solves its growth problem. First, it eliminates the costly IDRs. Second, the simplified structure will lower borrowing costs and enable KMI to make more acquisitions and capital expenditures, using its stock as a currency.

Kinder says its potential acquisitions include more than 120 energy operations that have a combined enterprise value of $875 billion. The rapid growth of energy production in the US continues to boost the need for more energy infrastructure.

Third, the new KMI will be able to generate more rapid dividend growth. CEO Kinder said he expects the new KMI to pay an annual dividend of $2 per share in 2015, a 16% increase over 2014. That translates to a 4.5% yield on the current KMI price. He also projects that KMI will increase its dividend by about 10% a year through 2020.

Yet another benefit: As a C corporation, the enlarged KMI will pay tax at a higher rate than before.  But it also will gain significant tax benefits, including (1) the ability to depreciate its newly acquired assets and (2) the tax breaks of any MLP assets it buys, both now and in the future. Kinder Morgan currently expects tax savings of $20 billion over the next 14 years.

Kinder Morgan will also save billions in distributions by buying out high-yielding MLP units with its own lower-yielding shares, even as the dividend growth rate accelerates.

While Kinder Morgan w! ill achie! ve significant tax benefits from this restructuring, its MLP investors will take a tax hit. Not only are they losing their tax-advantaged income streams. Most taxes on those distributions don’t come due until the MLP units are sold. Some investors plan to keep their units until death. In that case, taxes on the distributions would never come due.

However, the transaction generally will be tax-free for owners of Kinder Morgan Management (KMR), which is primarily held in tax-deferred retirement plans.

Kinder Morgan is using mostly stock to pay for the purchases. This enables investors in the three target businesses to continue their ownership. But now the MLP investors must sell their units to Kinder Morgan, and then pay tax on both the price appreciation and the deferred tax on their distributions.

So the limited partners are losing higher-yield distributions and the related tax breaks while facing a tax hit. On the plus side, though, the premium they’re getting on their investments should more than cover the tax bill. And probable future growth of KMI profits and dividends is expected to occur at a much faster rate than at the MLPs, with greater capital-appreciation potential.

The merger is expected to be completed by the end of this year, subject to shareholder and regulatory approval.

Benzinga's Top #PreMarket Losers

Related JD Benzinga's Top Initiations William Blair Initiates JD.Com At Market Perform Alibaba Delays IPO Until After Labor Day (Fox Business)

JD.com (NASDAQ: JD) shares declined 4.03% to $28.80 in pre-market trading after the company reported a quarterly net loss of 582.5 million yuan ($93.9 million).

Weibo (NASDAQ: WB) fell 3.77% to $20.65 in pre-market trading on Q2 results.

Nordstrom (NYSE: JWN) shares slipped 3.48% to $65.75 in pre-market trading after the company reported Q2 results. The company reported earnings of $183 million, or $0.95 per share.

Intercept Pharmaceuticals (NASDAQ: ICPT) dropped 1.81% to $291.00 in pre-market trading after falling 3.66% on Thursday.

Posted-In: PreMarket LosersNews Movers & Shakers Pre-Market Outlook Markets

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Why Hollywood Isn't Funny Anymore - but TV Is

www.transformersmovie.com It's not only the tragic passing of Robin Williams that has leached the humor out of Hollywood recently. Like many of the celebrated actor's late-career moves, the big-time film industry has been stepping away from comedy. It wasn't so long ago that comedies were an important staple of any major studio's release diet. No more. These days, moviegoers would be hard-pressed to find one at their local multiplex. Getting Serious Of 2013's top 10 grossing movies, none was a pure comedy, according to boxofficemojo.com. According to data compiled by the Nomura Research Institute, 2014 is set to witness the lowest level of major-studio comedies in at least five years. For 21st Century Fox's (FOXA) near-eponymous 20th Century Fox, comedies are anticipated to make up 8 percent of 2014 releases. That compares unfavorably to 27 percent in 2012 and 2013 and particularly to the 40-plus percent figures of 2010 and 2011. Disney (DIS), although it's more inclined toward animated fare and other genres, typically throws a comedy or several into its schedule. But this year it isn't planning on releasing any pure comedies. Lost In Translation This decline in the funny is due largely to a shift in the global movie going audience. International markets have become increasingly more important, with non-North American audiences comprising 70 percent of box office take in 2013, according to data compiled by the Motion Picture Association of America. The $25 billion in ticket sales to those markets last year represented an increase of 33 percent from 2009. Meanwhile, the growth in North American box office across the same stretch was a mere 3 percent. So international audiences matter more. The problem with comedies is that the humor often comes from the dialogue, even in films that feature heavy doses of sight gags and slapstick. (Think of the many verbal jokes among the physical humor of the 1980 classic "Airplane!" for example.) As a result, Hollywood comedies often don't work as well when dubbed or subtitled. The Great Wall Consider the size of the movie-going audience in Asia. China in particular is a white-hot market, with ticket sales rising a powerful 27 percent year-over-year in 2013 to $3.6 billion. Unfortunately, to boost its domestic film industry, the Chinese government strictly limits Hollywood imports. At the moment, only 34 releases from the major American studios are allowed a year. As a result, they're only shipping over movies that translate easily. The top two American efforts of 2013 -- "Iron Man 3" produced by Disney and "Pacific Rim" from Time Warner's (TWX) Warner Bros. -- were big-budget fantasy action films. That trend looks set to continue. So far in 2014, Hollywood holds the top box office spot in China. The winning movie? "Transformers: Age of Extinction," another expensive science fiction smash-'em-up, this one from Viacom's (VIA) Paramount. Shrinking Screen Although the amount of comedy in the multiplex is dropping precipitously, it's finding a niche in other media. In their respective bids to be key destinations for original programming, both Netflix (NFLX) and Amazon.com (AMZN) have filled their rosters out with several notable comedic efforts. Netflix revived off-the-wall sitcom "Arrested Development" and is filming season three of "Orange Is the New Black," a dramedy set in a women's prison. And next year, Lily Tomlin and Jane Fonda will team up to star in a new sitcom, "Grace and Frankie." Meanwhile, out of the five original series on Amazon's Prime streaming service, two ("Alpha House" and "Betas") are laughers. Is this the wave of the future? Perhaps the comedy genre is more suited to the intimate confines of a tablet or a TV, rather than the massive screen of the movie theater. After all, on that medium at the moment, there only seems to be room for Transformers and superheroes.

3 Reasons To Write Covered Call Options On ConocoPhillips

Related COP Top 4 Stocks In The Independent Oil & Gas Industry With The Highest Revenue ConocoPhillips (COP): Strong Industry, Solid Earnings Estimate Revisions - Tale of the Tape Energy Stocks Move Higher as Oil Spikes (Fox Business)

It has been good being a shareholder of major oil firms like ConocoPhillips (NYSE: COP), Exxon Mobil (NYSE: XOM), Occidental Petroleum (NYSE: OXY) and many others.

The bull market has lifted the equity prices higher, and oil's new role as a safe haven asset has made the companies even more valuable. The dividend income, traditionally strong as it is for the sector, has been even more rewarding. This has been especially true for ConocoPhillips, which is up more than 23 percent for 2014.

That makes it an ideal time to write covered call options on ConocoPhillips.

While up for the year, however, the rise is slowing down for ConocoPhillips. It is down for the last week of market action. The stock is trading at its year high. Earnings are predicted to fall. If that happens, so should the stock price.

Considering The Options

That is the first reason to write covered call options, which gives the buyer the right, but not the obligation, to purchase the shares at a determined price that is higher within a time period. It does not look like ConocoPhillips will be rising much more. That means that the call options will most likely expire worthless. Options expert Dr. Joseph Louro notes that this happens the great majority of times.

The next reason is that the seller gets to collect the dividend income.

Related: 5 British Blue Chips For Your Portfolio

ConocoPhillips has a dividend yield of 3.22 percent, topping the 2.69 percent of ExxonMobil. It is also higher than the 2.85 percent yield of Occidental Petroleum. The shareholders will continue to collect during the term of the option contract.

The last is that writing covered call options is a low-risk strategy.

Louro, who is the head of Investview (OTC: INVU), emphasizes this as the overall appeal of this strategy. Many buyers of options do it for hedging purposes.

Hence, the option as a hedge in an overall risk management program.

For ConocoPhillips stock owners, writing covered call options is very appealing. It is a low risk strategy, according to Dr. Louro. In addition, the dividend income will not be missed.

Posted-In: covered call options Dr. Joseph Louro OilLong Ideas Options Economics Markets Trading Ideas Best of Benzinga

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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The 1 Million Jobs Waiting to Be Filled

Imagine a career field that is projected to add more than one million jobs over ten years that paid on average $76,000 a year in 2012.

What if I told you nearly one quarter of them were for those that didn't require a four year degree, but paid nearly $50,000?

Or how about the fact nearly 100,000 individuals will be needed in management roles that paid on average $120,000?

Does all that sound too good to be true?

It isn't. And it turns out, there's just one place to look.

Source: Flickr / tsakshaug. 

The massive need

According to the latest Employment Projects from the Bureau of Labor Statistics, the number of Americans working in computer occupations is expected to rise from 3.7 million individuals in 2012 to 4.3 million by 2022.

But the number of total job openings due to both the growth of the industries and the replacement of individuals who retire is projected to stand at 1.2 million.

And as you can see in the chart below, there are six different occupations which are expected to have more than 100,000 job openings during that time:

Source: Employment Projections program, U.S. Bureau of Labor Statistics 

In fact, of the highest paying jobs that don't require a master's degree (or higher), three of the top four careers with the most total jobs openings all find themselves in the computer landscape.

All of this is to say, the future looks undeniably bright.

The reality

With the great pay and the high demand in mind, it's easy to think Americans everywhere would be chomping at the bit to take a career in one of these occupations.

But the problem is, as Microsoft revealed in its National Talent Strategy report:

Between 2010 and 2020, there will be at least 1.2 million job openings in computing professions that require at least a bachelor's degree, yet at our current pace we will not produce even half the number of U.S. graduates needed to fill those positions. 

The report went on to say that McKinsey projected 1.5 million careers in "data-savy," roles would go unfilled by 2018 and that, thanks to these trends, "the result is that employers in many industries across the U.S. are unable to fill high-skilled American jobs with high-skilled American workers, a trend that seems all but certain to continue if we fail to act."

The key takeaway

Thankfully the labor market and job picture in the United States has improved dramatically from where it stood in the following the Great Recession. But for anyone looking to take a massive leap by switching industries, going back to school, or maybe even starting at square one, a great place to look would be any occupation which falls into the rapidly growing computer landscape. You'll be glad you did.

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

Markets Up As Russia Seeks To End Military Activity Near Ukraine

Related BZSUM Sotheby's Slips On Downbeat Earnings; NVIDIA Shares Surge Markets Rise; Zynga Lowers 2014 Forecast

Markets exploded higher Friday on reports that Russia is ending military activity near the Ukrainian border.

The United States attacked ISIS fighters in Iraq on two separate occasions, prompting little market response. This suggests investors are much more interested in the Russian conflict than the one in Iraq.

Major Indexes

The Dow Jones Industrial Average gained 185.7 points, or 1.13 percent, to close at 16,554.

The S&P 500 added 22 points, or 1.15 percent, to finish at 1,932.

The NASDAQ rose 36 points, or 0.8 percent, to 4,371.

Related Link: 3 Analyst Outlooks On Market Response To U.S. Actions With Iraq

Other Stories

General Motors (NYSE: GM) announced five more recalls Friday, affecting 269,001 vehicles. Across all issues, GM said it is aware of two crashes and one injury that may involve the issues recalled.

Stock Movers

Mercadolibre (NASDAQ: MELI) shares shot up 14.5 percent to $105.85 after the company reported stronger than expected quarterly results.

Shares of Air Methods (NASDAQ: AIRM) saw a boost, shooting up 12.5 percent to $59.81 on upbeat quarterly results.

NVIDIA (NASDAQ: NVDA) shares were also up, gaining 8.8 percent to $19 after the company posted higher Q2 earnings and issued a strong revenue forecast for the current quarter.

Shares of Post Holdings (NYSE: POST) were down 15.9 percent to $37.43 after the company reported a Q3 loss of $0.30 per share on revenue of $633.0 million. The company also announced its plans to acquire American Blanching Company. SunTrust Robinson Humphrey downgraded Post from Buy to Hold and lowered the price target from $70.00 to $45.00.

Volcano (NASDAQ: VOLC) shares tumbled 20.4 percent to $12.56 on Q2 results. The company reported Q2 earnings of $0.01 per share on revenue of $102.60 million. Volcano announced its plans to divest its Axsun Technologies subsidiary and also announced the litigation settlement agreement with St. Jude Medical (NYSE: STJ).

Sotheby's (NYSE: BID) was down, falling 7.9 percent to $37.50 after the company reported weaker than expected second quarter earnings.

Volume and Volatility

Volume was a bit light on the day, with 114 million shares of the SPDR S&P 500 ETF (NYSE: SPY) exchanging hands. This compares to the 10-day and three-month averages of 125 million.

Volatility trickled lower after a run up. The CBOE measure (VIX), was down 5.3 percent to 15.8.

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© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Ralph Lauren Corp Beats Q1 Earnings Estimates; Misses on Revenue (RL)

Before the opening bell on Wednesday, Ralph Lauren Corp (RL) reported its fiscal 2015 first quarter results, posting lower profits than last year’s Q1.

RL’s Earnings in Brief

Ralph Lauren reported first quarter net income of $162 million, or $1.80 per share, down from last year’s Q1 figures of $181 million, or $1.94 per share. The company’s revenues were up slightly from last year’s Q1, coming in at $1.71 billion, compared to $1.65 billion. Ralph Lauren beat analysts’ EPS estimates of $1.78, but revenues came in slightly below the $1.73 billion expectation.

CEO Commentary

The company’s chairman and CEO, Ralph Lauren, had the following comments: "Our first quarter results demonstrate that we are making the right strategic decisions and investments to support our long-term growth objectives. Later this month, we'll mark an important milestone for the Polo brand with the introduction of Polo for women. That launch will be supported by the opening of our first Polo flagship store in New York City. This Fall, we'll open a 20,000-square-foot Ralph Lauren luxury flagship store in Greater China, a critical brand expression in an important market for us. As exciting as these first steps are now, the long-term potential is even more compelling."

RL’s Dividend

Ralph Lauren paid its most recent dividend on July 11. We expect the company to declare its next quarterly dividend of 45 cents in September.

Stock Performance

Ralph Lauren stock was up 93 cents, or 0.59%, in pre-market trading. YTD, the stock is down 10.72%.

RL Dividend Snapshot

As of Market Close on August 5, 2014

Click here to see the complete history of RL dividends.

10 Worst “Strong Sell” Stocks This Week — AEO RCII ACI and more

Popular Posts: 10 Oil and Gas Stocks to Buy Now10 Best “Strong Buy” Stocks — GMK TRGP TPL and more15 Oil and Gas Stocks to Sell Now Recent Posts: Biggest Movers in Healthcare Stocks Now – HALO TRNX LGND Biggest Movers in Technology Stocks Now – GIB INVN CSOD BDC Biggest Movers in Services Stocks Now – SBH SKM BKE DRI View All Posts 10 Worst “Strong Sell” Stocks This Week — AEO RCII ACI and more

This week, these ten stocks have the worst year-to-date performance. Each of these also rates an “F” (“strong sell”) on Portfolio Grader.

Shares of American Eagle Outfitters, Inc. () have slipped 27.8% since January 1. American Eagle Outfitters designs, markets, and sells its own brand of low-price clothing, accessories, and personal care products for young adults. As of July 31, 2014, 17.2% of outstanding American Eagle Outfitters, Inc. shares were held short. The stock’s trailing PE Ratio is 34.30. For more information, get Portfolio Grader’s complete analysis of AEO stock.

Since the first of the year, RentACenter, Inc. () has tumbled 28.1%. Rent-A-Center operates in the rent-to-own industry in the United States. As of July 31, 2014, 15.3% of outstanding RentACenter, Inc. shares were held short. For more information, get Portfolio Grader’s complete analysis of RCII stock.

Since the first of the year, Arch Coal, Inc. () has dipped 32.6%. Arch Coal produces coal and sells it to power plants, steel mills, and industrial facilities. As of July 31, 2014, 18% of outstanding Arch Coal, Inc. shares were held short. Shares of the stock have been changing hands at an unusually rapid pace, up 102% from the week prior. For more information, get Portfolio Grader’s complete analysis of ACI stock.

Since January 1, CGG Sponsored ADR () has plunged 34.5%. CGG provides geophysical services and software products and manufactures geophysical equipment. For more information, get Portfolio Grader’s complete analysis of CGG stock.

Shares of Weight Watchers International, Inc. () have fallen 37.1% since January 1. Weight Watchers is a provider of weight management services, operating globally through a network of company-owned and franchise operations. As of July 31, 2014, 21.5% of outstanding Weight Watchers International, Inc. shares were held short. Trade volume is up 222.5% from the previous week. For more information, get Portfolio Grader’s complete analysis of WTW stock.

Since January 1, Elizabeth Arden, Inc. () has fallen 40.6%. Elizabeth Arden manufactures, distributes, and markets prestige fragrances and related skin treatment and cosmetic products for men and women. The stock has a trailing PE Ratio of 129.90. For more information, get Portfolio Grader’s complete analysis of RDEN stock.

Since January 1, UTi Worldwide () has plunged 41.9%. UTi Worldwide is a supply chain services and solutions company. As of July 31, 2014, 10.4% of outstanding UTi Worldwide shares were held short. Shares of the stock have been changing hands at an unusually rapid pace, up 180.7% from the week prior. For more information, get Portfolio Grader’s complete analysis of UTIW stock.

Shares of Alpha Natural Resources, Inc. () have fallen 48.4% since January 1. Alpha Natural Resources produces, processes and sells steam and metallurgical coal. As of July 31, 2014, 24.1% of outstanding Alpha Natural Resources, Inc. shares were held short. For more information, get Portfolio Grader’s complete analysis of ANR stock.

The price of Walter Energy () is down 60.1% since the first of the year. Walter Energy is a producer and exporter of metallurgical coal for the global steel industry. As of July 31, 2014, 12.6% of outstanding Walter Energy shares were held short. For more information, get Portfolio Grader’s complete analysis of WLT stock.

Share prices of Aeropostale, Inc. () are down 62.4% since the first of the year. Aeropostale is a mall-based specialty retailer of casual apparel and accessories. As of July 31, 2014, 30.9% of outstanding Aeropostale, Inc. shares were held short. For more information, get Portfolio Grader’s complete analysis of ARO stock.

Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.