Daily Update Investment News

Stocks Will Rise Despite Jobs Data: Strategist
By: JeeYeon Park CNBC News Associate
U.S. employers unexpectedly cut 85,000 jobs in December, according to government data on Friday, cooling optimism on the labor market's recovery. How will the data affect stocks? Mike Holland, chairman of Holland & Company, and David Spika, vice president and investment strategist at WHG Funds, shared their views.“The employment numbers really gave us a reality check,” Spika told CNBC.“The trend of the recovery is still in place, but what this showed us is that markets and expectations got a little ahead of themselves, in terms of the recovery.”Despite the grim data, Spika said he still expects stocks to rise and suggested investors put their money into the large-cap, high quality names.

Malaysia Stocks May Drop on ‘Shooting Star’: Technical Analysis
(Bloomberg) -- Malaysia’s benchmark stock index may drop after a “shooting star” formation emerged in its candle chart yesterday, halting an advance on the key 1,300 resistance level, RHB Research Institute Sdn. said. “Clearly, the index has failed its first attempt to remove the solid psychological level,” RHB said in a report today. The “immediate-term outlook has turned slightly negative.”Candlestick charts show an index or security’s high, low, open and close each day, and may signal a reversal of a trend or a continuation. A “shooting star” has a short real body with a long upper shadow, forming on a day when a security that has been rising previously has an open, close and low close together and far away from the high for the day.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a44DQKiSoO6E

Oil’s Rally to Stall at $88, BayernLB Says: Technical Analysis
Crude oil’s rally will falter at $88 a barrel, capped by a trend-line connecting the highest prices of the past six months, according to Bayerische Landesbank. Oil reached a 14-month high this week, rising to $83.52 a barrel on Jan. 6, as freezing temperatures in the northern hemisphere stoked demand for heating fuels. The surge won’t last much longer, as prices are in excess of their fair value and heading for a layer of resistance at $88, according to Germany’s second-biggest state-owned lender.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aEj5uNU.EBBA

Oil Heading for $90 a Barrel: Technical Analysis
(Bloomberg) -- Crude oil will test resistance at $85.42 a barrel and may reach $90 or $100 during the first quarter of 2010, according to technical analysis by Newedge Group. Prices are set to challenge $85.42 and $85.82 a barrel, the highs reached by February futures on Nov. 4 and Oct. 21, said Veronique Lashinski, a senior research analyst for Newedge USA LLC in Chicago. A fall below $81.79 would point to a “short- term corrective decline,” she said.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a_P3ESDmr9gs

Dollar Poised for Break Out Against Yen: Technical Analysis
(Bloomberg) -- The dollar may post a “bullish break out” against the yen if tomorrow’s U.S. employment report shows the economic recovery gaining momentum, according to Bank of Tokyo-Mitsubishi UFJ Ltd. A break through “strong resistance” between 93 and 95 yen, where the 30-month bear trend line is located, would confirm the move, Lee Hardman, foreign-exchange strategist in London for Bank of Tokyo, wrote in a report today. A resistance level is where sell orders may be clustered.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a6pGSnXy_XPU