YOUR FRIENDS' ACTIVITY

    • In the dead of winter, three long months ago, the buzz on Wall Street was about the great rotation. This budding super-trend was not only calling for a massive movement of money out of bonds and into stocks, but was also being used as a crutch to justify otherwise inexplicable gains in the market.

      Today, there's another rotation underway, only this time the money flow is moving out of defensive sectors and into cyclicals and other industry groups that have been lagging. It's a sudden shift in sentiment that Miller Tabak's Jonathan Krinsky calls, "the other great rotation," and a trend that could prove to be just what's needed to drive stocks to fresh highs.

      And according to Peter Kenny, managing director at Knight Capital, as much as earnings season has been "lumpy and uneven with extremes on both ends," it is also fueling the movement of money.

      "Earnings and guidance are helping that rotation out of the defensives and into the more risk-oriented or growth-oriented or alpha-oriented issues, and away from the Dow 30," he says in the attached video. He notes even small and mid-cap stocks are beating the Dow Industrials now too.

      Read More »from Earnings and Risk Rotation Could Fuel the Rally
    • There’s nothing like fresh produce straight from the farm. Green markets are popping up all over the country to meet growing demand for high quality food. But if you don’t have the time or the patience, you certainly have options. FreshDirect is one of the largest online grocers that’s been clicking with consumers seeking quality.

      Grocery delivery services aren’t new; they’ve existed as long as the stores themselves. While overall grocery store sales in the U.S. fell 2.1% last year, online grocer sales jumped over 8%, according to IBISWorld. Further, they estimate online sales to grow 9.5% annually into a $9.4 billion industry by 2017.

      The largest is Peapod, a service that delivers goods specifically from grocery store chains Stop & Shop and Giant Foods. The company started in Illinois in 1989 and now covers 24 markets in 13 states. FreshDirect is the new kid on the block, started in New York in 2002.

      Breakout sat down with the co-founders, Jason Ackerman and David McInerney, to digest exactly what sets FreshDirect apart.

      “Forget the Internet for a moment, look at a Stop & Shop and Whole Foods (WFM),” says Ackerman, who also serves as CEO. “You’d be able to articulate that they’re very different stores. It’s the same thing. We are about really the best fresh food on the marketplace and that’s what makes us different.”

      The company travels around the globe looking for the freshest meat, seafood, and produce. Unlike competitor Peapod, they’re not tied to any specific grocer. They believe this enables the service to be faster and fresher.

      “Take strawberries. Those strawberries are bred and grown to have a three week shelf life,” explains McInerney, “to accommodate retailers that need to move them around and around and around until ultimately they end up at a consumers house. Our model takes out a lot of the distribution because we’re buying it directly from the farm. We can take entire truckloads from the farm into us, often pre-selling it before it even arrives in our facility because we take orders seven days out.”

      FreshDirect told us exclusively about plans to take that freshness to a whole new level. The company will relocate from its Long Island City headquarters in Queens, to the Bronx, New York, where they’ll have a brand new facility and products that are ripe for the picking.

      Read More »from FreshDirect Building 200,000 Sq. Ft. Greenhouse in South Bronx
    • For those of you looking for a reason to get excited about the first quarter GDP report due out Friday morning, perhaps nostalgia may be just the hook you need. That's because it will mark the final economic measurement done before the government's Bureau of Economic Analysis rolls out newly calculated data in July.

      "People just take the GDP number and run with it, without really looking into the details," says Peter Kenny, managing director at Knight Capital in the attached video. "It is a very complex number."

      Officially, Kenny and other market watchers and economists are looking for tomorrow's report to show GDP recovering to 2.8% in the first three months of the year, from what he refers to as "stole mode" in the fourth quarter amidst election and fiscal cliff worries.

      "If you look at the markets and broader indexes, they're really pricing in some fairly significant earnings power and guidance," he says of the anticipated uptick in activity.

      This self-described ''old school" analyst finds the whole thing a bit Orwellian and conspiratorial. Thanks to the inclusion of the value of such ''intangibles" as intellectual property, research and development, and the creativity of artists and scientists, our economy will magically be 3%, or about $450 billion larger, when the next numbers come out in July.

      Read More »from Bracing for the Great GDP Data Shift, Like It or Not
    • In a country sharply divided by political ideology, race, age, sexual orientation and cats versus dogs, it's comforting to remember there are some things in which we all agree. Americans are pro Freedom in a vague way. We're against earaches, aging and automated customer support centers.

      Above all, as a unified body of 300 million, we despise waiting at airports for no reason. If it makes us seem like a nation of spoiled brats, that's fine as long as our flights leave roughly on time.

      The only people unaware of this hatred are the politicians and FAA officials inflicting flight delays on us all. The pols point across the aisle, the FAA swears it's not intentionally slowing down service despite it being in their financial interest to do so, and airline lobbyists are already suing the government. All this and the cutbacks haven't been in place for a week.

      It shouldn't come as any surprise that the politicians are already showing signs of caving in on the forced cutbacks to the FAA. What is surprising is most airline stocks are having a big week on decent earnings news and continued momentum.

      Jon Najarian, co-founder of OptionMonster.com, says neither the flight delays nor the airline stock rally are built to last. "The flying public is not just the dumb public," says Najarian in the attached clip. "Many of them, business travelers in particular, are raising a lot of noise about (the delays) and this will end very quickly."

      Read More »from Airline Stocks Are Coming in for a Hard Landing: Najarian

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