The Market Guardian
The Food and Drug Administration Thursday approved a new type of prostate cancer treatment from Dendreon Corp. The therapy, Provenge, is approved for certain men with advanced prostate cancer who have failed treatment with hormone therapy.
“The availability of Provenge provides a new treatment option for men with advanced prostate cancer, who currently have limited effective therapies available,” Karen Midthun, acting head of the FDA biologics center, said in a statement.
MarketClub has an interesting take on today’s DNDN action. Click Here for today’s FREE Trading Report + 100 score is given.
The Pragmatic Capitalist
It’s almost like bad case of 2008 deja vu. Goldman Sachs says oil is going to $99 in the next 12 months as Bernanke’s reflation experiment drives prices higher. According to their analysts energy and metals prices have “broken out” of their trading range and could head higher:
“Energy and industrial metals prices break out of recent trading ranges, rising to the highest levels seen since 2008. After trading in an increasingly narrow range in March, energy and metals prices broke out to the upside as March rolled into April, with WTI crude oil prices rallying above $85/bbl.”
“We expect the supply-demand balance to continue to tighten in 2010 as the global economic recovery continues to strengthen demand, draw inventories and draw OPEC spare capacity back into the market.”
Based on the improving fundamentals they see oil prices touching $99 at some point in the next 12 months. Of course, this doesn’t mean the oil market is without risk. Goldman sees potential policy risks and still believes the economic recovery could falter:
“While we remain confident that oil prices will continue to strengthen as the global economy recovers against a supply backdrop that remains constrained, policy risks to the economic recovery remain. While we continue to expect the supply-demand balance to tighten, significant downside risk remains should the market’s concerns regarding a slowdown in economic growth be realized. As we move further into 2010 and even 2011, we think the market’s focus will increasingly turn from the downside risk from demand to the upside risk from supply.”
How to play it?
Goldman wants to buy December 2010 NYMEX WTI and June 2010 NYMEX WTI call struck at $85/bbl.
Joe Weisenthal of Money Game
Here’s an important heads up.
Today at 10:00 AM Ben Bernanke will attending a hearing on “The Economic Outlook.”
There’s always some nervousness before he speaks (will he all of the sudden sound more hawkish?).
Let us give you a preview of some things that might come up:
- On the deficit, Bernanke will say it’s a serious issue, but that it’s too soon to do anything about it. At some point it will have to be dealt with. You know, after everyone that’s in office now is out office.
- On entitlements, Bernanke will say they have to be fixed. At some point.
- That may involve some discussion or raising taxes (not his problem).
- He’ll say the economy is strong…
- But not so strong that we’re out of the woods yet (this will be the money line, when stocks will go nuts, because investors will know that this is a code word low rates).
- If Ron Paul is there, that will produce something YouTube-worthy.
From the National Federation of Independent Business: Small Business Optimism Declines in March
The National Federation of Independent Business Index of Small Business Optimism lost 1.2 points in March, falling to 86.8. The persistence of index readings below 90 is unprecedented in survey history.
“The March reading is very low and headed in the wrong direction,” said Bill Dunkelberg, NFIB chief economist. “Something isn’t sitting well with small business owners. Poor sales and uncertainty continue to overwhelm any other good news about the economy.”
After a devastating period of employment reductions, employment change per firm hit the “zero line” in March. …. While actual job reductions may have halted, plans to create new jobs remain weak. … Only nine percent (seasonally adjusted) reported unfilled job openings, down two points and historically low, showing little hope for a lower unemployment rate.