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Two Ways To Play: Always Coca-Cola

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Strengthen your portfolio in good times and bad.

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Morning Perspective

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New Coke?

According to the Wall Street Journal, Coca-Cola's (KO) president and COO Muhtar Kent will be taking over the reigns of the company. Announced late last year, Kent will be replacing Neville Isdell as CEO just as two of the company's bottlers have issued profit warnings and while sales have begun to slow. But officials maintain the company is better positioned to weather a slowdown.

Although Kent admits the headwinds have gotten stronger, he maintains that the company will stick to its current plan of closer cooperation with retailers, improved marketing, as well as expansion into juice and other drinks. Read a recent Five Things You Need To Know by Professor Kevin Depew.

From the Bull Pen: Is the long-term uptrend for CVS Caremark (CVS) still in tact? Those looking for a bullish consumer staple can play the upside with sell-stops near $38.

From the Bear Cave: Those bearish KO can press the downside; buy-stops can be set near the $53-54 range.


Falling Further Behind

Bloomberg reports the number of homeowners with private mortgage insurance that fell behind on their payments rose more than those who caught up on their overdue payments. Nearly 68,000 people fell at least 60 days behind on their mortgages, compared to almost 41,000 who got back on track, according to a report by the Mortgage Insurance Companies of America. Further, insurers are tightening standards on mortgages they insure to cut further losses, the group said. The higher standards led a nearly 50% drop in the number of mortgage insurance policies issued to new homeowners in May. For context on our economy, see Fed Flying Blind… Still.

From the Bull Pen: As stocks never trade in straight lines for very long, is the DJ real estate ETF (IYR) a buy at $60? Bulls can attempt the upside with sell-stops near $58-59.

From the Bear Cave: Previous support may now be resistance. A rally to $25 for Home Depot (HD) might present an opportunity for housing/consumer bears. Buy-stops can be set above that level.


For more ideas in real time throughout the trading day, check out Minyanville's Buzz & Banter.


Quick Check Around the World

Asian trading closed mostly lower with the Hang Seng +0.27%, Nikkei -0.46%, Sensex -2.47%, Taiwan -0.33% and Shanghai -0.45%.

A quick check across the pond finds the CAC +0.46%, DAX -0.75%, FTSE +1.08%

As of 8:30 AM EST, S&P futures are higher +0.90 points to 1280, and Nasdaq futures are down -5.75 points to 1860.


A Look At Commodities

In commodities, crude oil is higher +2.06 to 142.30. Gold is higher +2.30 to 933.60. Silver is up +0.065 to 17.685, and copper is up +2.85 to 391.25.

The dollar index is lower -0.014 to 72.347.


On the Radar

Economics

9:45 Chicago Purchasing Manager: 48.5 cons.
10:00 NAPM-Milwaukee: 45.0 prior

Click here for the full trading radar.


Remember! It's a short week ahead and the markets close early on Thursday! Good luck!
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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