Market News

DuPont (NYSE: DD) and Dow (NYSE: DOW) are expected to merge, subject to regulatory approvals. Once merged, the management has plans to split the combined entity into three independent and publicly traded companies, with different areas of focus. This is expected to happen within a period of 18 to 24 months following the merger. What is the need of splitting up the joint companies and how does it help shareholders? We would try to answer these and similar such questions.

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Recently, Tesla Motors unveiled a new battery for its electric vehicles which is capable of going up to 315 miles on a single charge. This range sets a new benchmark for automotive engineers who are trying to resolve 'range anxiety' issues, as it brings electric cars in line with the range typically received in a gasoline powered car. Tesla’s existing batteries give a range of around 170 miles from a charge that takes about 30 minutes. The company divulged the new power pack with the introduction of its Model S (P100D), which claims records for accelleration as well as range. And with this technological breakthrough in place, Tesla canoffer this higher range battery in its less costly models as well. Still, the success of an electric vehicle, adequate infrastructure in terms of charging stations is critical. As an increasing number of Tesla cars hit the roads in the next few years, its super charger network can face tremendous volume, which can be balanced with a battery having a higher range, reducing waiting time in these stations. This development is an indication of Tesla’s innovative edge over competition and should attract buyers towards its higher end models in the long term.

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The worst performing sector as of midday Tuesday is the Utilities sector, showing a 1.0% loss. Within that group, NRG Energy Inc (NYSE: NRG) and American Water Works Co, Inc. (NYSE: AWK) are two of the day's laggards, showing a loss of 2.6% and 1.5%, respectively. Among utilities ETFs, one ETF following the sector is the Utilities Select Sector SPDR ETF (AMEX: XLU), which is down 0.9% on the day, and up 15.28% year-to-date. NRG Energy Inc, meanwhile, is up 5.31% year-to-date, and American Water Works Co, Inc. is up 26.14% year-to-date. Combined, NRG and AWK make up approximately 2.9% of the underlying holdings of XLU.

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In afternoon trading on Tuesday, Financial stocks are the best performing sector, up 0.1%. Within the sector, MetLife Inc (NYSE: MET) and Wells Fargo & Co. (NYSE: WFC) are two large stocks leading the way, showing a gain of 1.9% and 1.7%, respectively. Among financial ETFs, one ETF following the sector is the Financial Select Sector SPDR ETF (AMEX: XLF), which is up 0.4% on the day, and up 3.48% year-to-date. MetLife Inc, meanwhile, is down 7.92% year-to-date, and Wells Fargo & Co., is down 5.18% year-to-date. Combined, MET and WFC make up approximately 9.2% of the underlying holdings of XLF.

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In trading on Tuesday, shares of Franco-Nevada Corp (NYSE: FNV) entered into oversold territory, changing hands as low as $69.31 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

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In trading on Tuesday, shares of Great Plains Energy Inc (NYSE: GXP) entered into oversold territory, changing hands as low as $27.04 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

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Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

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The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Xenia Hotels & Resorts Inc (NYSE: XHR) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.

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In an attempt to overcome its image as purveyor of canned, sodium-laden soup, the Campbell Soup Company has been selling fresh carrots, salad dressing and hummus through a new "Campbell Fresh" division. Unfortunately, the health gambit is proving less fruitful than executives had hoped: the company reported lower-than-expected fourth quarter earnings Thursday morning in large part to lower sales and problems plaguing Campbell Fresh.

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