Showing posts with label Soar. Show all posts
Showing posts with label Soar. Show all posts

Thursday, April 25, 2013

Midday Report: Airline Stocks Soar, in Spite of Sequestration


Airline stocks have been soaring over the past year, and the latest round of earnings reports from the industry could add to the momentum.

All of the major carriers beat Wall Street expectations, even though some are still struggling to post consistent profits.


And then there’s the budget sequestration, which is angering airline executives, members of Congress and the flying public. That’s because the mandated spending cuts have forced the FAA to reduce staffing levels in air traffic control towers, which has caused major flight delays this week, mostly in the East and the Midwest.


Airlines and air traffic controllers - Getty ImagesGetty Images The FAA reports significant travel delays today at Chicago’s O’Hare Airport, as well as the three New York area airports – JFK, LaGuardia and Newark. There have also been problems this week in Los Angeles, Dallas, Las Vegas, Denver, Miami and Tampa.


The airlines are worried that travelers will blame them for the delays. Some airlines are warning the bottlenecks could reduce bookings heading into the summer travel season.


Thousands of flights have been delayed or cancelled since the rolling staff furloughs began last Sunday. That’s forcing air traffic controllers to put more distance between planes in the air, as well as those taking off and landing, in order to maintain safety.


That adds to the normal problems created by bad weather, because air traffic controllers have fewer options to re-route flights. An airline industry trade group wants the FAA to waive restrictions on how long passengers can be kept on the runway to accommodate the flight delays, and to avoid worsening the disruptions.


All of this angst is leading to new calls for Congress to act. Some want to allow the FAA to reallocate its funds to stop the furloughs, while others want to use this mini-crisis as the impetus to strike a broad budget agreement.


Now let’s go back the good news for the airlines and for investors.


Over the past year, shares of US Airways (LCC) have soared 73 percent. It’s in the midst of merging with AMR (AAMRQ), the parent of American Airlines.


Southwest (LUV) is up 69 percent from a year ago. Delta’s (DAL) up 59 percent, and United Continental (UAL) 36 percent.


And all beat analysts’ estimates for the first quarter, which is traditionally the weakest period for the industry. In addition, they all report that some key measures of growth and profitability improved in the quarter.


–Produced by Drew Trachtenberg




DailyFinance.com




Midday Report: Airline Stocks Soar, in Spite of Sequestration

Thursday, April 18, 2013

As PC sales fall, supercomputers soar


Mike Henderson knows trucks. He’s president of a company called Smart Truck, and he had a problem.


“Trucks,” he says, “are fairly unaerodynamic devices. Half their fuel goes to defeating aerodynamic drag.”


But he needed to make his clients’ semi-trailers more fuel efficient to comply with California law — and fast. Trouble was, calculating airflow is crazy complicated.


There are all kinds of vortices. “Almost every piece of a truck produces wake and they mix with other wakes,” Henderson says. “It would take over a week to do a single calculation” to see how a single part would interact with a whole truck.


And he’d need to do hundreds of calculations.


So Henderson did what a growing number of businesses are doing: He managed to get access to a supercomputer. Not just any supercomputer, but “the most powerful computer in the world for open science,” according to Suzy Tichenor at the Department of Energy’s Oak Ridge National Laboratory.


Titan, as the $ 100 million supercomputer is known, is nearly the size of a football field.


“It clocks in at about 27 petaflops, which is the equivalent of 27 quadrillion calculations or operations a second,” Tichenor says. A quadrillion is a million billion. “It’s a big boy.”


Labs and businesses – even small businesses like Henderson’s — can apply to use it. It’s free if they make some of their results public, thereby fulfilling Oak Ridge’s goal of promoting advancement in science and engineering. Henderson was able to test prototype trucks that existed only inside the computer before going to the trouble of making real parts. His team saw air movements that would’ve been invisible in a wind tunnel.


“It probably got us to market a year faster than we would have had we not used it,” he says, adding that he improved trucks’ fuel efficiency by 14 percent by adding special airfoils.


Tichenor says other businesses have been banging down the door for a crack at Titan. The number of applicants has risen 20 percent in the past year.


“We’ve definitely seen a growth in the number of companies that are applying because modeling and simulation allows you to accelerate the research and development process dramatically,” she says.


That includes auto companies which would rather not build a hundred different cars just to crash them all, insurance companies modeling how fires spread and biotech companies too.


Not only have firms been applying to use government supercomputers, they’ve been buying up their own.


“The market has been growing at a rate we’ve never seen before,” says Earl Joseph with international market research company IDC. The company has been tracking the computer industry for two decades. Joseph says a medium size supercomputer costs $ 10 million, but they’ve been selling like hotcakes even through the recession.


“Supercomputers grew 65 percent in 2009 alone, last year sales grew another 29 percent. You’re not seeing those growths in any other sector right now,” he says.


There are a few reasons supercomputers are now a $ 5.5 billion industry. “The questions, the problems that users are looking to solve are becoming more and more complex,” says Barry Bolding at supercomputer producer Cray, which made Titan. Demand for Cray’s computers has increased five-fold over the past five years.


BP, for example, has an array of seismic sonar devices the size of Manhattan. Processing the echoing sound waves to suss out the contours of oil and gas deposits beneath the ocean floor is an immense computational task. Another factor: Computers have become faster by incorporating processors known as GPUs that were developed for the gaming industry.


Earl Joseph, at IDC, says the next milestone in supercomputing will be something called an “exascale machine,” a thousand times faster than Titan.


“The biggest problem right now is the electrical bill,” he says. “To build that big of a computer you almost need a nuclear power plant right next to it.” The annual electricity bill could run anywhere from $ 30 million to $ 50 million.


He says someone will probably figure a way around that though, as governments and companies alike run a supercharged race to build computers that are ever more super.


Latest Stories on Marketplace.org




As PC sales fall, supercomputers soar

Friday, April 12, 2013

Gold Bitcoined, Bonds And Yen Soar, Dow Back To Unch (Of Course)


Gold was Bitcoin’d (or Baumgartner’d) as it suffered its biggest daily drop since LTRO2 on 2/29/12. The JPY rallied over 1% – its biggest rise in 7 weeks. 10Y Treasuries had their best day in 7 weeks. Macro data was absymal. But it was evident that the only thing mattered was a new high close for the Dow – as we noted 10 minutes before the close:


 



 


And thanks to some help from the old ramp standbys – HYG and VIX – they nearly made it (but not quite) as the Dow ended -0.08 points rallying 75 points on the worst macro data day in months, with the EURUSD ramping just the right amount over 1.31.


 


Not a good day for Commodities… gold…



 


A Great day for bonds…



 


Not a good day for JPY carry traders and the rest of Western Civilzation banking on Abenomics to save the world…



 


But The Dow came through so mom and pop wouldnt even know the stuff had hit the economic fan…



 


The S&P did not have such a sgood day though once Europe closed the algos were in charge and we oscillated around VWAP… and closed prefectly balance at VWAP…



 


But FX land was more active today than it has been a week or two…



 


as Treasuries reversed almost all their losses on the week…



 


Not a fun week for precious metals (or oil for that matter)…



 


Charts: Bloomberg and Capital Context





    




Zero Hedge




Gold Bitcoined, Bonds And Yen Soar, Dow Back To Unch (Of Course)

Tuesday, April 2, 2013

Spain"s Deficit Set to Soar; GDP Poised to Plunge; Job Losses Fastest in 3 Years; IIF Wants Permanent Tax Hikes

The situation in Spain took another sharp turn for the worse. Employment losses are the greatest since 2009, tax revenue is declining, the deficit is increasing and the IIF wants economically insane tax hikes.

GDP Poised to Plunge, Deficit Poised to Rise


El Economista reports IIF believes that the Spanish economy will contract by 2% in 2013.

The Institute of International Finance (IIF) believes the Spanish economy contraction will accelerate to register a gross domestic product (GDP) decline of 2%.

“The decline in GDP seems likely to accelerate to 2% in 2013 after 1.4% in 2012, as high unemployment, tight monetary conditions and current lower wages further reduce domestic spending and weak demand contain domestic exports,” said the IIF in a report on the eurozone.


The agency believes that this growth outlook “much weaker” have made ​​the agreed deficit targets for 2013 and 2014 are “unreachable”, and believes that this year will close above 6%.


The IIF notes that the 2013 Budget predicted that the deficit falls to 4.5% of GDP this year down and 3% in 2014. “However, these growth forecasts for this year especially, seem unlikely,” the report says.


In the current context, tax revenues will be lower than expected and that social spending will increase as a result of high unemployment. This will bring the deficit back above 6% of GDP, even if the government implements all the measures it has promised.


It warns the expiration of temporary tax increases such as income tax hikes approved by the Government in 2012, will cause the deficit to rise again in 2014 to 6.7%.


To ensure greater deficit reduction in 2014, the government needs to extend temporary tax increases more than expected or identify other measures to compensate their withdrawal.


Decline in Manufacturing Accelerates


The Markit Spain Manufacturing PMI shows Decline in manufacturing production accelerates in March.

Key Points:

Faster falls in output and new orders
Sharpest decline in employment since December 2009
Input costs decrease for first time in eight months


Summary:


March saw an accelerated deterioration in business conditions in the Spanish manufacturing sector,
with output, new orders and employment all falling at faster rates than in February. This contrasted
with business conditions coming closer to stabilisation earlier in 2013.


The seasonally adjusted Markit Purchasing Managers’ Index dropped to 44.2 in March, from 46.8 in the previous month. This was the lowest reading since October 2012, and represented the twenty-third successive deterioration of business conditions in the sector.


New orders fell at a steeper pace in March, with the latest decline the fastest since November 2012.
New export orders also decreased, ending a three-month period of growth. The rate of job cuts also
quickened, and was the steepest since December 2009.


Comment:


Commenting on the Spanish Manufacturing PMI ® survey data, Andrew Harker, economist at Markit and author of the report, said: “The March PMI data for Spain make grim reading for the manufacturing sector. Moreover, the latest figures have brought an end to the recent period of moderating declines, and cast doubt on any hopes of recovery for the rest of the year. The employment index again highlighted the extent of the problems currently afflicting the manufacturing sector and the wider Spanish economy, with jobs cut at the fastest pace in more than three years.”


The IIF wants Spain to hike taxes (extend temporary hikes if you prefer). Either way, the IIF is totally nuts. How long is Spain going to put up with this?


Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com


Mish’s Global Economic Trend Analysis




Spain"s Deficit Set to Soar; GDP Poised to Plunge; Job Losses Fastest in 3 Years; IIF Wants Permanent Tax Hikes