Has Ben Bernanke Saved the Mortgage Market?

Freddie Mac released its weekly update on national mortgage rates Thursday morning, and once again, it appears that the Federal Reserve has saved the day (for homebuyers).

Following a sharp spike last week on worries that the Federal Reserve was planning to reduce future bond purchases, a release of "minutes" from Fed committee meetings that took place on June 18 and 19 suggested bond purchases will, in fact, continue. That sent mortgage rates right back down again.

Thirty-year fixed-rate mortgages (FRM) dropped 14 basis points to land at 4.37% this morning. Fifteen-year FRMs shed 12 basis points, falling to 3.41%.

Among variable-rate mortgages, 5/1 ARMs gave up nine basis points, declining to 3.17%. One-year adjustable-rate mortgages held steady at 2.66% -- now in their fourth straight week at this rate.

Freddie Mac vice president and chief economist Frank Nothaft credited Fed Chairman Ben Bernanke with the easing of rates, noting: "During a question and answer session following a speech on July 10th, Chairman Bernanke indicated that a highly accommodative monetary policy is what's needed in the U.S. economy."

5 Stocks That Dominated The Market Friday

Stocks were highly confused all day after the Labor Department showed that a 6.7% unemployment rate surprise was simply because so many people have dropped out of the workforce. The real bomb was that the payrolls additions were not even half of estimates and were the worst in three years.

24/7 Wall St. decided to focus the stocks that dominated the Dow Jones industrial Average on Friday. There were some serious surprises. Earnings season will start to kick off this coming week, so stay tuned.

At the bell we had the DJIA trading in the red and the S&P 500 index in the black. Here were the unofficial closing bell levels at 4:00 PM:

DJIA at 16,436.79 (-7.97) – unofficial close S&P 500 1,842.37 (+4.24) – unofficial close

Alcoa Inc. (NYSE: AA) was the dog of the day. Fortunately this was booted out of the DJIA last year, so that means it did not directly impact the index. Still, investors want to think of Alcoa as an earnings season benchmark. After missing earnings it fell over 5% and was down at $$10.13 in the final minutes of trading.

Chevron Corp. (NYSE: CVX) also stunk up the DJIA with its earnings forecast looking down over 20% from the same quarter a year ago. So what if refining margins were good. This stock was at a loss of 1.8% in the final minutes of trading, down to $121.06 from a 52-week high of $127.83.

UnitedHealth Group Inc. (NYSE: UNH) was fighting Chevron to have the worst performance of the day on Friday. This may have been more profit taking because the stock opened up at $$76.20, only a dime within its new all-time high put in this week.

Microsoft Corp. (NASDAQ: MSFT) stood out strongly today because of an analyst upgrade. The stock was raised to Overweight from Equal Weight and the price target was raised to $42 from $36 at Barclays. So what if no CEO heir has stepped forward. Shares were up by over 1.3% to $36.01 in the final minutes of trading. This was the highest DJIA percentage gainer on the day.

The Coca-Cola Company (NYSE: KO) was the second highest percentage gainer on the DJIA on Friday. It seems that investors are continuing to bet that it won’t be in the biggest DJIA laggards in 2014 like it was in 2013, but valuations (forward P/E ratio of 18 for 2014 estimates) are too high to make it a value stock.  Shares were up just over 1% at $40.14 in the final minutes of trading.

Top 5 Stocks To Buy Right Now

With shares of Target (NYSE:TGT) trading around $71, is TGT an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Target�operates general stores in the United States, as well as online, where it sells merchandise at discounted prices. It�operates in three segments: U.S. Retail, U.S. Credit Card and Canadian.��Target’s online presence is designed to enable guests to purchase products either online or by locating them in one of its stores with the aid of online research and location tools. Groceries, clothing, household items, and general merchandise can be found at Target stores that make it an efficient shopping experience for consumers throughout the nation. Target stores will continue to be an excellent option for consumers looking for a variety of discounted items in one location.

NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!

T = Technicals on the Stock Chart are Strong

Top 5 Stocks To Buy Right Now: Grande Portage Resources Ltd. (GPG.V)

Grande Portage Resources Ltd., an exploration stage company, engages in the exploration and development of mineral resource properties in the United States and Canada. It primarily focuses on exploration for gold and silver. The company holds an option to acquire 65% interest in the Herbert Glacier gold property located in north of Juneau, Alaska. The company is based in Vancouver, Canada.

Top 5 Stocks To Buy Right Now: Federal Signal Corporation(FSS)

Federal Signal Corporation designs and manufactures a suite of products and integrated solutions for municipal, governmental, industrial, and commercial customers worldwide. The company operates in three segments: Safety and Security Systems, Fire Rescue, and Environmental Solutions. The Safety and Security Systems segment offers various systems for automated license plate recognition, campus and community alerting, emergency vehicles, first responder interoperable communications, industrial communications and command, municipal networked security, vehicle classification, parking revenue, and access control. This segment also provides products, such as lightbars and sirens, public warning sirens, and public safety software. The Fire Rescue segment offers articulated and telescopic aerial platforms for rescue, fire fighting, and maintenance purposes. This segment sells its products to municipal and industrial fire services, civil defense authorities, rental companies, elect ric utilities and industrial customers. The Environmental Solutions segment provides various self-propelled street cleaning vehicles, vacuum loader vehicles, municipal catch basin/sewer cleaning vacuum trucks, and water blasting equipment. The company was founded in 1901 and is based in Oak Brook, Illinois.

Advisors' Opinion:
  • [By Louis Navellier]

    Federal Signal (FSS) has posted three strong earnings surprises so far this year. Demand for its environmental and fire and rescue products have been much stronger than expected. The company restructured its balance sheet last year, and interest expenses have declined by more than 70% — boosting the bottom line significantly. Earnings are up more than 60% so far this year, and the shares are still reasonably valued at just 7 times earnings. FSS stock was upgraded in Portfolio Grader to an ����back in August and remains a ��trong buy��at the current price.

  • [By Louis Navellier]

    DL stock was upgraded to an “A” by Portfolio Grader back in April, and like ABTL, China Distance should be considered a “strong buy” as its fundamentals improve.

    ‘Best of the Best’ Stock Picks #3: Federal Signal (FSS)

    Federal Signal (FSS) makes everything from fire trucks to street sweepers and is benefiting for pent-up demand for its products.

Top Gold Companies To Own In Right Now: Nuveen Virginia Premium Income Municipal Fund (NPV)

Nuveen Virginia Premium Income Municipal Fund is a closed-ended fixed income mutual fund launched by Nuveen Investments, Inc. The fund is co-managed by Nuveen Fund Advisors, Inc. and Nuveen Asset Management, LLC. It invests in the fixed income markets of Virginia. The fund invests primarily in municipal securities rated Baa/BBB or better. It invests in securities that provide income exempt from federal and Virginia income tax. The fund employs fundamental analysis with bottom-up stock picking approach to create its portfolio. It benchmarks the performance of its portfolio against the S&P National Municipal Bond Index and the S&P Virginia Municipal Bond Index. Nuveen Virginia Premium Income Municipal Fund was formed on January 12, 1993 and is domiciled in the United States.

Advisors' Opinion:
  • [By Chuck Carnevale]

    Moreover, at this point I would like to add that the real meaning of forecasting future earnings is so we can determine what the size and amount of the future cash flows that a stock under consideration might be capable of generating for us. This is important, because assessing the net present value of our expected future income stream, is at the heart of determining fair value (intrinsic value). Calculating net present value (NPV) is functionally-related to today's wide utilization of discounted cash flow (DCF) analysis as a stock selection tool. I will elaborate more on this important metric in part B of this article.

Top 5 Stocks To Buy Right Now: Thomson Reuters Corp (TRI.TO)

Thomson Reuters Corporation provides intelligent information for businesses and professionals worldwide. The company allows market participants to connect, access content, and trade in a secure environment through Thomson Reuters Eikon desktop, Thomson Reuters Elektron network, content integration and management technology, content feeds and databases, and transactions infrastructure solutions that support buy- and sell-side customers to trade in foreign exchange, fixed income and derivatives, equities, exchange-traded instruments, and commodities and energy markets. It also offers information, analytics, workflow, and technology solutions to buy-side and off-trading floor customers; access to liquidity in over-the-counter markets, trade execution, and connections for market participants and financial professionals� communities; and a suite of solutions offering informed outcomes to regulated industries and law firms. In addition, the company provides critical information , decision support tools, and software and services to legal, investigation, business, and government professionals; integrated tax compliance and accounting software and services for accounting and law firms, corporations, and government professionals; and intellectual property and scientific resources that enable its customers to discover, develop, and deliver innovations. Further, it offers coverage of global, regional, and national news in 20 languages covering politics, business, finance, entertainment, lifestyle, technology, health, science, and sports; provides governance, risk, and compliance e-learning programs; and engages in advertising-supported direct-to-consumer publishing activities of Reuters.com and its network of Websites, mobile applications, and electronic out-of-home displays. The company was formerly known as The Thomson Corporation and changed its name to Thomson Reuters Corporation in April 2008. The company is headquartered in New York, New York.

Top 5 Stocks To Buy Right Now: LDK Solar Co. Ltd.(LDK)

LDK Solar Co., Ltd., together with its subsidiaries, engages in the design, development, manufacture, and marketing of photovoltaic (PV) products; and development of power plant projects. It offers solar-grade and semiconductor-grade polysilicon; and multicrystalline and monocrystalline solar wafers to the manufacturers of solar cells and solar modules. The company also provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers; and sells silicon materials, such as ingots and polysilicon scraps. In addition, it engages in the production and sale of solar cells and modules to developers, distributors, and system integrators; and design and development of solar power projects in Europe, the United States, and China, as well as provides engineering, procurement, and construction services. LDK Solar Co., Ltd. operates in Europe, the Asia Pacific, and North America. The company was founded in 2005 and is based in Xinyu City, t he People?s Republic of China.

Advisors' Opinion:
  • [By Travis Hoium]

    Today, LDK Solar (NYSE: LDK  ) , which is the second largest maker of solar wafers, said it has "partially defaulted" on $23.8 million in bonds due yesterday. The company negotiated a settlement with holders of $16.6 million of the bond and is "ready and willing" to discuss a settlement with the others. �

  • [By Wall Street Sector Selector]

    Previous to last week's solar flare, the sector has suffered through some awful growing pains. The financial crisis resulted in reduced subsidies for development in the rapidly-advancing photovoltaic power industry. Meanwhile, China increased government financing of its solar industry, having already established a strong presence in the sector with such companies as Suntech Power (STP) and LDK Solar (LDK).

  • [By Aaron Levitt]

    For many solar stocks — like LDK Solar (LDK) — Europe has been the traditional hot-spot for module sales. However, as austerity has gripped the region, PV subsidies have fallen by the wayside. That�� caused many solar stocks to hurt pretty hard since the financial crisis. For CSIQ, the focus has moved from Europe to new demand drivers in Japan and China.

4 Stocks Under $10 in Breakout Territory

DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

>>5 Stocks Set to Soar on Bullish Earnings

Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.

Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.

>>5 Toxic Stocks to Sell in 2014

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside.

Uranium Resources

Uranium Resources (URRE) engages in the acquisition, exploration, development,and mining of uranium properties, using the in situ recovery mining process. This stock closed up 10.6% to $3.53 in Tuesday's trading session.

Tuesday's Range: $3.14-$3.53

52-Week Range: $1.75-$6

Tuesday's Volume: 552,000

Three-Month Average Volume: 227,584

From a technical perspective, URRE spiked sharply higher here right above its 50-day moving average of $2.88 with above-average volume. This stock has been uptrending for the last few weeks, with shares moving higher from its low of $2.58 to its intraday high of $3.53. During that move, shares of URRE have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of URRE within range of triggering a major breakout trade. That trade will hit if URRE manages to take out some near-term overhead resistance at $3.55 to some past resistance at $4 with high volume.

Traders should now look for long-biased trades in URRE as long as it's trending above Tuesday's low of $3.14 or above its 50-day at $2.88 and then once it sustains a move or close above those breakout levels with volume that hits near or above 227,584 shares. If that breakout hits soon, then URRE will set up to re-test or possibly take out its next major overhead resistance levels at $5 to $5.53.

Cardiome Pharma

Cardiome Pharma (CRME), a biopharmaceutical company, engages in the discovery, development and commercialization of therapies that enhance the health of patients. This stock closed up 6.3% to $6.49 in Tuesday's trading session.

Tuesday's Range: $6.08-$6.55

52-Week Range: $1.60-$7.15

Tuesday's Volume: 110,000

Three-Month Average Volume: 156,727

From a technical perspective, CRME spiked higher here right off some near-term support at $6 with lighter-than-average volume. This stock recently formed a double bottom chart pattern at $5.85 to $6. Since forming that bottom, shares of CRME have now started to spike higher and move within range of triggering a major breakout trade. That trade will hit if CRME manages to take out some key near-term overhead resistance levels at $6.95 to its 52-week high at $7.15 with high volume.

Traders should now look for long-biased trades in CRME as long as it's trending above $6 or above $5.85 and then once it sustains a move or close above those breakout levels with volume that hits near or above 156,727 shares. If that breakout hits soon, then CRME will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $9 to $10.

American Apparel

American Apparel (APP) engages in the design, manufacture, distribution and sale of branded fashion basic apparel products and clothing and accessories for women, men, children and babies. This stock closed up 6.7% to $1.43 a share in Tuesday's trading session.

Tuesday's Range: $1.35-$1.45

52-Week Range: $1.00-$2.40

Tuesday's Volume: 1.76 million

Three-Month Average Volume: 733,902

From a technical perspective, APP ripped higher here with monster upside volume. This stock has been uptrending strong for the last few weeks, with shares soaring higher from its low of $1.01 to its intraday high of $1.45. During that uptrend, shares of APP have been consistently making higher lows and higher highs, which is bullish technical price action. This move is now pushing shares of APP within range of triggering a near-term breakout trade. That trade will hit if APP manages to take out Tuesday's high of $1.45 to some more near-term overhead resistance at $1.52 with high volume.

Traders should now look for long-biased trades in APP as long as it's trending above Thursday's low of $1.35 or above $1.30 and then once it sustains a move or close above those breakout levels with volume that hits near or above 733,902 shares. If that breakout hits soon, then APP will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $1.62 to $1.70. Any high-volume move above those levels will then give APP a chance to tag $1.80 to $1.90, or even $2.

Information Services Group

Information Services Group (III) provides fact-based sourcing advisory services in the Americas, Europe and the Asia Pacific. This stock closed up 8% to $4.58 in Tuesday's trading session.

Tuesday's Range: $4.26-$4.61

52-Week Range: $1.10-$4.67

Tuesday's Volume: 360,000

Three-Month Average Volume: 206,794

From a technical perspective, III ripped sharply higher here right above its 50-day moving average of $4.05 with above-average volume. This move is quickly pushing shares of III within range of triggering a major breakout trade. That trade will hit if III manages to take out Tuesday's high of $4.61 to its 52-week high at $4.67 with high volume.

Traders should now look for long-biased trades in III as long as it's trending above Thursday's low of $4.26 or above its 50-day at $4.05 and then once it sustains a move or close above those breakout levels with volume that hits near or above 206,794 shares. If that breakout hits soon, then III will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $5.50 to $6.

To see more stocks that are making notable moves higher, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>3 Financial Stocks Rising on Big Volume



>>5 Hated Earnings Stocks You Should Love



>>5 High-Yield Stocks Ready to Pay You More in 2014

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.


Markets Fight Back to Positive Territory Today

This afternoon, I noted that during the past few months, we have seen a number of losing days -- but they have always been followed by a winning session as investors move in and have bought on the dips. A little before 1 p.m. EDT today, that didn't seem to be the case, as all the major indexes were in the red. But, as the day progressed, the bulls came back, and the markets moved into positive territory.

When the closing bell finally rang, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) was up 41 points, or 0.28%, and sat at 14,799. The 41-point change did break an eight-session streak in which the index moved higher or lower by more than 100 points. The S&P 500 (SNPINDEX: ^GSPC  ) also ended the day higher, up 0.27%, but the Nasdaq couldn't make it into the black, as it lost 0.22% during the day.

This morning, when the Dow was down by as much as 69 points, there were a number of its components in the red, but at 4 p.m. EDT on Wall Street, only 11 remained down for the session. Let's take a look at three of today's losers.

Shares of JPMorgan Chase (NYSE: JPM  ) declined by 0.99% today on very little news pertaining directly to the company. But, interest rate risk, and a new scandal at fellow Dow banking stock Bank of America have provided investors enough fuel to cut the share price of JPMorgan today. As my colleague John Grgurich pointed out earlier today, although JPMorgan fell 3.31% this past week, the company is a great one to be invested in right now. The bank has a great balance sheet, and the fundamentals of the company are getting better and better as each quarter passes. 

Another Dow component that fell on news that doesn't directly pertain to the company, but could have serious long-term effects on its business, was Alcoa (NYSE: AA  ) . The aluminum producer fell 0.44% today on news that the Chinese government is tightening credit. The reason this will affect Alcoa is that the company needs strong economies where construction and large infrastructural projects are happening in order for it to sell its product, aluminum. If credit tightens in China, large projects and development will likely slow, and ultimately hurt the company's top and bottom lines. 

Another Dow stock that likely fell on the news from China was Caterpillar (NYSE: CAT  ) , which ended the day down 0.1%. Although today's announcement clearly didn't have a major affect on either caterpillar or Alcoa, it did add fuel to the bearish sentiment investors have had with each company this year. Caterpillar is down 7.24% year to date, while Alcoa has lost 8.06%. These may not seem like massive declines, but when we add in the fact that the Dow itself is up 12.94% in 2013, the idea that Alcoa and Caterpillar have been beaten by nearly 20% over just the past six months is rather shocking.

Caterpillar is the market share leader in an industry in which size matters, and its quality products, extensive service network, and unparalleled brand strength combine to give it solid competitive advantages. Read all about Caterpillar's strengths and weaknesses in The Motley Fool's brand new report. Just click here to access it now.

After Takeoff in 2013, Time for Airlines to Reach Cruising Altitude

The big airlines–Delta Air Lines (DAL) and American Airlines (AAL), among them–took off in 2013. Can they reach cruising altitude in 2014?

EPA

Absolutely, says Cowen’s Helane Becker. She writes:

2013 proved to be a very strong year for the airlines, trading up 57.6%. Our 2013 thesis of capacity discipline, last major airline merger and the beginnings of capital deployment announcements played out in line with expectations. We expect 2014 to be a strong year for the group, as the airlines have really only benefited from merger
announcements rather than merger synergies. We expect [United Continental (UAL)] and American to continue rationalizing capacity, helping with the pricing environment. United will announce their return of capital plans in late 2014 to be executed in 2015, while Delta will announce further capital deployments at their annual meeting in June.

Becker’s top picks: Southwest (LUV), United Continental, Delta and American.

Top picks they may be, but they haven’t all performed that way. While American Airlines has gained 1.6% to $26.96, Delta Air Lines has risen just 0.2% to $29.28, United Continental has ticked down 0.1% to $39.90 and Southwest Airlines has dropped 1.3% to $19.17.

Is this the result of a shift into American from other airlines?