Foreign Banks Rebound From Global Crisis and Ross Stores’ Stock Slumps Despite Growth

–(– 01/03/2010 – Financial News industry news provided by Financial News USA. Banking stocks are taking leadership in emerging economies. Booming growth needs capital. Businesses must borrow to set up shop or expand. New consuming classes are demanding homes. That’s real-estate development, construction and mortgages.

The standout in this group may be Banco Santander Brasil (BSBR), a recent spinoff from Spanish banking giant Banco Santander (STD).

Santander Brasil came public Oct. 7 at $13.40 per share. The stock has built a square-box base with a buy point at 14.68.

Santander Brasil’s results were hurt in the recent chaos, like almost all banks. But EPS in the past three quarters surged at a triple-digit pace, although Q1 and Q2 were reported as one half-yearly result. Estimates for the current period are running at a 140% gain.

With so little history, sponsorship does not yet appear in the spinoff bank. But the former parent shows excellent sponsorship through its Madrid listing. [Read the full article]

Cash-strapped consumers have been expected to trade down from high-priced department stores and restaurants to low-priced discount retailers and fast-food joints.

That has held for a while as stocks like McDonald’s (MCD) led the market. But they’ve been lagging lately. Take Ross Stores (ROST), the 939-store chain based in Pleasanton, Calif.

It’s reported three straight quarters of accelerating earnings. Yet, the stock has been in a downtrend.

The decisive day was Oct. 8. The company reported better-than-expected same-store sales and boosted guidance.

The stock was up in the morning – it hit an all-time high of 50.50, but closed down for the day in big volume. The next day, it was down hard again as trade swelled.

Ross’ strategy is to buy directly from manufacturers whose goods it offers in no-frill, self-service stores at everyday discounts of 20% to 60%.

Most of its stores are in California and Florida, where the housing slump has been at its worst. [Read the full article]

The market for Treasuries was thin, with many regular participants absent during the second of two holiday-shortened weeks to end the year.

After the two-year auction, which analysts said drew a modest response given the time of year, prices hewed mostly to earlier levels, with longer-dated notes registering moderate losses.

The auction drew a higher percentage of direct bidders compared with previous two-year auctions, but a smaller percentage of indirect bidders.

“We knew the street’s balance sheets were going to be light coming into year-end so there might be some hesitation in bidding aggressively at the auctions, but we didn’t really see that,” said Ian Lyngen, senior government bond strategist at CRT Capital Group. “The market ground sideways here into the close.”

The benchmark 10-year note’s yield was 3.84%, its highest in nearly five months, up from 3.81% late Thursday. [Read the full article]

It’s been some time since that could be said of the Big Cap 20, though admittedly the action is early and the evidence thin. But a number of stocks in this week’s lineup have cleared buy points and appear to be holding up or making headway.

This is encouraging, especially given that small caps have been outperforming big caps in recent weeks.

Apple (AAPL) broke out of a flat base on Christmas Eve. Volume was up about 65% on a same-time basis. (You won’t see that on the chart because Christmas Eve was a half-session and therefore volume was below the full-day average.) The maker of computers and entertainment devices is now almost 2% past its 208.10 buy point.

Google (GOOG) cleared a three-weeks-tight pattern on Dec. 14, but volume was missing. Volume kicked in four sessions later.

Visa (V) inched over a three-weeks-tight pattern in average volume on Dec. 1. Then it dipped back into the pattern. On Dec. 14, it gapped up 4% in huge volume. [Read the full article] About Financial News USA

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