Market Comment
The US earnings reporting season has generally been a positive affair suggesting corporate America is finding its way towards better earnings growth territory. But the feel good factor has been interspersed with economic data that is at best ambiguous about the economy and at worst, raising fears of a double-dip recession. The latter looks increasingly unlikely, but the rate of growth in the US economy is hardly inspiring greater confidence amongst its consumers.

Reckitt Benckiser - Buy
Reckitt Benckiser is a company whose products are more familiar to us than the corporate entity which sits behind it. With the financial media typically focusing on the dramas of missed expectations it is also a firm which has kept a relatively low profile due to consistent performance. The defensive nature of its products, opportunities for continued growth through emerging markets and the mid-teens rating ensure we rate the group a buy.

Goals Soccer Centres - Buy
Downturns can see growth stocks come down to earth with a bump as investors reduce their risk exposure. Falls in consumer spending can also cause trading to be weak which undermines the very reason for investing in growth shares. Both these factors have played out at Goals Soccer Centres but we believe the future for the group is still strong and recommend the stock as a buy.

Dana Petroleum – Sell Half
News that China has now usurped the United States as the world’s pre-eminent user of energy has not gone unnoticed by neighbour South Korea. In its quest for greater energy independence, the Korean National Oil Company (KNOC) has announced an £18 per share offer for Dana Petroleum (LSE, DNX). With management at Dana weighing up their options, we view the sudden jump in share price as the perfect opportunity to bank some profits… particularly given the 634% gain on offer.

Rio Tinto – Hold
The market’s outlook for commodities is highly polarised; in forming a view of the company, management’s view on the outlook for commodities carries more weight than the actual production numbers that were unexciting. Rio’s chief executive, Tom Albanese, said the company's operations were close to capacity. Albanese reported that the markets were strong for most of the company’s products but said that the pattern of volatility in markets will continue.

Petroleum Resources Corporation – Hold
With different areas of the energy industry experiencing vastly different fortunes of late the benefits of diversification have become all too apparent. Natural gas producers have seen falling prices on the back of techniques to exploit unconventional deposits and of course the companies involved in the Gulf of Mexico spill have taken a hit. The long-term theme of increased demand and constrained supply remains and we therefore rate Petroleum & Resources Corporation (PEO) as a hold.