Category: Stock Option Trading News

In light of the slight upswing of the national economy, the housing market has begun to follow suit. According to the Commerce Department, construction of new homes has risen 17.2 percent in the last month, higher than the rate economists predicted following April’s record low. This, combined with the steady increase of building permits issued, is a good indication that home construction is and will be experiencing resurgence in the near future. The construction of multi-family homes has seen the greatest increase in the last month at 61.7 percent with single-family homes rising 7.5 percent. Further positive news, is that the wholesale price remains in check, despite this increase in construction. As the market slowly improves, well-established major homebuilders have demonstrated the smallest quarterly losses throughout the economic downturn.

Having recently announced the upcoming release of its first free anti-virus software, Microsoft (MSFT) has put itself on the path of patching the yawning holes in its security, swooping at the same time into the territory of multi-billion dollar anti-virus companies Symantec (SYMC)and MacAfee (MFE). Morro, named after Brazil’s Morro de Sao Paulo beach, will replace Microsoft’s first foray into the anti-virus world. You may remember Live OneCare, Microsoft’s fizzle-and-flop attempt at virus protection, whose threat to industry leaders was far more bark than bite. Morro’s exact release date is unknown, though Microsoft says it will launch the free product by the end of 2009. Microsoft employees are currently testing an early version.

The manufacturing sector is an important component of a diversified investment portfolio. However, with the cyclical nature of the wide range of companies that fall under the manufacturing umbrella, it can be difficult to choose the appropriate stocks to own.

Treasury Secretary Timothy Geithner is proposing requirements that will improve the transparency of over the counter derivatives trading on instruments such as interest rate and credit default swaps. Geithner calls for electronic execution of trades to replace the current system, which mostly involves telephone orders. The goal is to make price information on these derivatives continuously available to investors via electronic means, much like stock and options price data. The increased transparency will level the proverbial playing field by preventing price manipulation and will reduce risk to “less sophisticated investors”.

For owners of construction stocks, the fallout of the subprime lending crisis has hit home in a big way. With prospective homeowners finding it difficult to obtain credit, this is not a good time to be in the process of selling new homes. Business construction has slowed too, as more companies are cutting back instead of adding to their existing facilities. Even in the worst of times, however, there are always companies still able to weather the storm. Here are four construction stocks whose strong performance will help build your portfolio:

The Obama Administration has proposed a program to limit greenhouse gas emissions. Under a “cap and trade” scenario, companies exceeding the set limits could purchase and emission allowances on the open market. Republican detractors label the proposal a veiled tax on business, and predict job losses and further damage to the economy. The Environmental Defense Fund, however, found 1,200 companies in 12 states that would benefit from a carbon cap program resulting in the creation of approximately 5 million “green” jobs.

The Apple (AAPL) iPhone looks so peaceful who’d believe the boardroom wars this hand size device has sparked. Marketed as the Swiss Army knife of cell phones it already had more uses than any other cell when they threw open the gates and gave the application software code up to any comers. The resulting application free for all has made no few garage startup companies enough money to at the very least rent some office space while large companies have either gotten on board or been left in the dust. Now eBay (EBAY) is hoping their purchase of the Internet phone service Skype will finally pay off in its new life as an iPhone application.

The stock market surged in recent days with the surprising announcement that February housing starts were up 22% from January. The news has spurred some analysts to predict that we have finally landed at the bottom of the crippling housing slump with the euphoria of recovery soon to follow. Other experts insist that this outlook is overly optimistic and that the housing slump still has further to fall. With this division of opinion, it can be difficult for investors to determine whether or not now is the right time to invest in homebuilders.

One feature of the recent economic stimulus package, the American Recovery and Reinvestment Act of 2009, that has garnered a great deal of attention is the first time home buyer credit. This credit is actually a revision of a similar tax credit that was introduced in 2008. While there are many similarities between the two tax credits there are very significant differences as well.

The real estate market in the U.S. has experienced significant price declines in the last five years, dropping as much as 40% in some areas of the country. The hardest hit markets are California, Nevada and Florida. These markets experienced some of the fasted increases in real estate prices starting in 2004; hence it is no surprise that these markets have been hit the hardest. Prices are now back down to their 1991 levels, so why aren’t people rushing to purchase properties that a few years ago, at much higher prices, were thought to be great deals?