Goldman Sachs warning to investors on a “substantial pullback” in oil prices triggered a 3% drop today. Oil prices have risen 33% since mid February due to fears in supplies and production with unrest currently in the Middle East. OPEC reassured the market that they were compensating for any slowdown in productions of other nations in trouble.

Panic selling could take hold and drive prices back to $100 per barrel if prices hold near $106. Investors last week bought contracts at $107-$112. On the other hand prices at the pump continue to rise and are expected to break more records. We continue to support buying energy stocks, especially given the current market. Buy on peoples fears and sell on their optimism.

Share on Facebook

The U.S. job market is improving as new data indicated this week. A surge in hiring helped lower the unemployment rate to 8.8% the lowest it has been in two years. The economy gained 216,000 jobs last month beating analysts expectations of 180,000. Private companies have accounted for 1.8 million jobs created in a year.

Which industries are hiring? The leaders were:

• Professional Services = 78,000 jobs
• Health Care/ Social Services = 44,000 jobs
• Leisure and Hospitality = 37,000 jobs

Who’s still cutting?

• Public Sector = -14,000 in March

13.5 million People remain unemployed and the average length of unemployment is at a record 39 weeks

Share on Facebook

We’re still holding below the 400k level, a signal that the job market is recovering, however at a slow rate.

The Department of Labor reports unemployment (initial claims) statistics as follows.

“n the week ending March 19, the advance figure for seasonally adjusted initial claims was 382,000, a decrease of 5,000 from the previous week’s revised figure of 387,000. The 4-week moving average was 385,250, a decrease of 1,500 from the previous week’s revised average of 386,750.”

Entering the 300 thousand level is a good sign in the job market. More data is need to determine if the labor market is recovering or stagnant.

Share on Facebook

Tax payers are still in the red from the bailout money the government issued. However out of the $256 billion returned the government earned $56 billion in profits. $123 billion is still unpaid from the TARP and $133 billion from GSEs. Eventually all the bailout money will be returned but the question is how will the government capitalize and will the tax payers get a cut or anything.

Take a look at this charts, showing where the money is and the returns on investments.

Sources:
Behind Administration Spin: Bailout Still $123 Billion in the Red
Paul Kiel
ProPublica

http://www.propublica.org/article/behind-administration-spin-bailout-still-123-billion-in-the-red

The State of the Bailout

http://projects.propublica.org/bailout/main/summary

Share on Facebook

For all you up right now here’s a midnight infograph from social media graphic, showing Microsoft’s product releases, yearly revenue and major milestones. Whats not surprising is Microsoft’s stock price which can be consider more as a saving account rather than an investment. The stock price is stagnant, it just won’t break and hold the 30 level. However, whats in impressive is their yearly revenues and profits. Microsoft is sitting on a reported $53 billion in cash reserves. So for anyone interested in a safe investment with small growth, I suggest investing in Microsoft stock.

Share on Facebook

After devastating double disasters (8.8 Earthquake and Tsunami) the Japanese stock market crashed today as investors absorb the impact to an already weak Japanese economy.

The Nikkei 225 index crashed over 6% as more and more reports came in about the massive damage to the infrastructure. Industrial, manufacturing financial stocks were hammered with investors worried about the amount of recovery time needed. Production has nearly halted with concerns of continued blackouts and aftershocks.

Japan’s central bank pledged 15 trillion yen ($184 billion) to pump the economy and support the reconstruction of the country.

It’s likely the Japanese market will remain bearish this week as investors reassess their holdings. Their will be a lot of bargains, so if you have cash on hand you will be able to pick up some good companies at discounted prices.

Share on Facebook

We’re still holding below the 400k level, a signal that the job market is recovering, however at a slow rate. Sidenote, for all our California readers, your state’s unemployment is projected to remain in double digits till 2013.

The Department of Labor reports unemployment (initial claims) statistics as follows.

“In the week ending March 5, the advance figure for seasonally adjusted initial claims was 397,000, an increase of 26,000 from the previous week’s revised figure of 371,000. The 4-week moving average was 392,250, an increase of 3,000 from the previous week’s revised average of 389,250.”

Entering the 300 thousand level is a good sign in the job market. More data is need to determine if the labor market is recovering or stagnant.

Share on Facebook

Below is a table ranking the top 15 countries by proven oil reserves. The U.S. government estimates the world reserves totaling 1.35 trillion barrels.

Rank
Country
Oil Reserves
Production
Consumption

1.
Saudi Arabia
260 billion barrels
9.76 million barrels
2.43 million barrels

2.
Canada
175.2 billion barrels
3.29 million barrels
2.15 million barrels

3.
Iran
137.6 billion barrels
4.18 million barrels
1.69 million barrels

4.
Iraq
115 billion barrels
2.4 million barrels
636,000 barrels

5.
Kuwait
101.5 billion barrels
2.5 million barrels
372,000 barrels

6.
Venezuela
99.4 billion barrels
2.47 million barrels
723,000 barrels

7.
United Arab Emirates
97.8 billion barrels
2.79 million barrels
492,000 barrels

8.
Russia
60 billion barrels
9.93 million barrels
2.74 million barrels

9.
Libya
44.3 billion barrels
1.79 million barrels
264,000 barrels

10.
Nigeria
37.2 billion barrels
2.21 million barrels
272,000 barrels

11.
Kazakhstan
30 billion barrels
1.54 million barrels
241,000 barrels

12.
Qatar
25.4 billion barrels
1.21 million barrels
147,000 barrels

13.
China
19.2 billion barrels
9.14 million barrels
18.81 million barrels

14.
United States
19.2 billion barrels
9.14 million barrels
18.81 million barrels

15.
Brazil
11.65 billion barrels
2.57 million barrels
2.52 million barrels

Source: http://www.eia.doe.gov/

Share on Facebook

American Airlines announced they will suspend their growth plans for 2011. Primary factor in this decision is the rising cost of oil in a volatile market and a recovering economy. Their plan is to fly less domestically resulting in higher ticket prices. The airline industry according to AMR spokesperson Tim Smith, have hiked fares 12 to 14 times.

AMR has been hammered for the year down close to 30%, currently at $6.56 -0.18 (-2.67%). American Airlines lost an estimated $50 million in revenue due to the cancellation of over 8,000 flights during storms across the U.S.

American plans to phase out their fleet of MD-80’s with the newer and larger Boeing 737-800’s that are 35% more fuel efficient. Luckily for American they were able to hedge 35% of their estimated fuel consumption for 2011 at $2.52 a gallon. Currently the cost of one gallon of fuel is $2.83, up almost 40% from 2010.

Share on Facebook

The Department of Labor reports unemployment (initial claims) statistics as follows.

“In the week ending Feb. 19, the advance figure for seasonally adjusted initial claims was 391,000, a decrease of 22,000 from the previous week’s revised figure of 413,000. The 4-week moving average was 402,000, a decrease of 16,500 from the previous week’s revised average of 418,500.”

Entering the 300 thousand level is a good sign in the job market. More data is need to determine if the labor market is recovering or stagnant.

Share on Facebook