Wednesday, June 08, 2005

Financial Stocks: Ameritrade, E-Trade lead financials up - Financial - Financial Services - Markets/Exchanges - Market News

Financial Stocks: Ameritrade, E-Trade lead financials up - Financial - Financial Services - Markets/Exchanges - Market News

Our top performing stocks today was an interesting collection. All are "new economy" stock; ET, TIVO, TXN, IACI, and GLW.

The excitement in regard to ET is all about merger talk in the industry. The CEO says the number of players will likely go from six to two.

TIVOtechnology continues to evolve. TV viewing is about to become mobile. Marilyn saw an add for a wireless TV server last night. This is different that TIVO-to-GO but mobile TV is coming to a lap top, cell phone or other electronic device near you.

TXN is an old company and even calculator sales are strong. The real excitement here is in the DLP patented technology being used in cell phones and TVs. The technology allows very low power usage in cell phones even when displaying video images.

GLW. is making LCD glass by the boat load. Big screen prices are reaching the adoption price for billions of people. The cost to make LCD screens is already a fraction of the cost for small screens and will soon be a fraction of the cost for large screens. GLW. is also selling roll after roll of fibre optic cable and equipment that makes it work. LVLT has also been on a roll.

IACI did a stock buy back in exchange for a small business and made a good profit. Google traded down but it was time for a breather.

The bottom line is that tech stocks are moving like they move after an economic recession. The "second" run is underway for this economic cycle. The BULL is running. Some months back, today's news would have sent the market into a tail-spin. There was a sharp decline in oil inventories, the administration lowered its economic forecast and bond rates rose. In a Bull market, "bad news" is taken in stride and the market holds its ground; this is what happened today.

The slower economic forecast is likely the reason that commodities, trucking and other economic sectors were down today. The US Dollar strengthened. The stock, bond and commodity markets together are predicting moderate growth and low inflation. Of all the possible combinations, the best environment for stocks is moderate growth and low inflation.

The market is up against the resistance of the long-term trading range. It may take a while to break free. The tech sector appears to be ready to lead the way. Where INTC and TXN lead many others will follow.