Even though Google's (NASDAQ: GOOG ) search business continues to crank out
huge amounts of cash flows, the company definitely is concerned. Companies like
Apple (NASDAQ: AAPL ) continue to pose problems with the mobile market. Even
Microsoft (NASDAQ: MSFT ) remains a strong competitor, especially with its
dominant Office franchise. Yet it looks like the biggest threat is Facebook.
With more than 750 million active users, the company continues to grab online
marketing dollars. For example, according to a report from Reuters , the company
doubled its revenues to $1.6 billion during the first half of this year. Of
course, Google's answer is Google+. And as an indication of how serious the
company is about this service, it has pimped out its spartan home page with a
big, blue arrow pointing to a tab for Google+. Yes, it's inevitable that there
will be an explosion of sign-ups. Even as an invitation-only service, Google+
got roughly 25 million users. But the big question is: Will the users stay? The
concept of "engagement" is absolutely critical for social networks. And
history has shown that this can fizzle out pretty quickly. Just look at
operators like Friendster, Bebo, Ringo, Tribe and MySpace. They are either dead
or near dead. Only a few social networking services, such as LinkedIn (NYSE:
LNKD ), have actually survived. Despite all this, Google+ continues to look
promising. Launched just 90 days ago, the service has seen frequent innovation.
The Hangouts service which allows for multi-user video chat is turning into a
great product. It also has new iPhone/iPad apps and integration with the main
search engine. All in all, it looks like Google's engineers are working as if
they were at a lean, mean startup. But having a strong product is not enough.
Facebook has been able to add some new capabilities to deal with Google+. In
fact, on Thursday, the company will conduct its much-anticipated F8 conference,
where even more features and offerings such as a music service will be
announced. Basically, Google needs to get creative. So what to do? Well, perhaps
the most impactful thing is to get celebrities involved. And Google already has
that covered. Grammy Award-winning musician will.i.am will do a performance on
Google+s Hangouts at 9 p.m. That should attract plenty of buzz. But Google
should continue to push aggressively. The company has a huge cash hoard and
could sign social-networking exclusives with top acts like Lady Gaga and Justin
Bieber. By doing this, Google should be able to scale its service substantially,
as well as create more engagement. True, even with all this, Facebook still is
likely to remain the dominant player at least for a couple years. The company
still has many entrenched advantages. But Google+ is looking more like a worthy
adversary and not showing signs of letting up the pressure. Tom Taulli is the
author of "All About Short Selling" and "All About Commodities." You can
also find him at Twitter account @ttaulli. He does not own a position in any of
the stocks named here.
Wednesday, September 21, 2011
Wednesday Apple Rumors: iPhone 5 Announcement Due Oct. 4
Here are your Apple news items and rumors for Wednesday: iPhone 5 Announcement
Coming Oct. 4: All Things Digital reported Wednesday that the long-suspected
Apple (NASDAQ: AAPL ) press conference to announce the next iPhone will take
place Oct. 4. This information came from sources close to the situation . Apple
was expected by analysts to announce its new iPhone at the end of September with
an early October release to follow, but All Things Digital s source indicates
the new smartphone will release a few weeks after the press conference. The
seeming delay could be the result of rumored production problems hampering the
iPhone 5s release . The event will be the first major product reveal from the
company since Steve Jobs handed over the CEO reins to former COO Tim Cook.
Shareholders worried that a Jobs-less Apple might fumble a new product launch
shouldnt be concerned considering Apple shares continue to break records . China
Booms Ahead of iPhone 5 Release: Brian White, analyst at Ticonderoga Securities,
issued a note to investors (reprinted at Apple Insider ) discussing the state of
the Chinese telecom industry and things are going pretty well over in the
largest country on earth. The number of subscribers using 3G mobile phones grew
a whopping 7.8% in August, bringing the total number of users to 93.8 million.
White believes this rampant growth will continue throughout the fall, leaving
China with 125 million 3G subscribers by the end of the calendar year. The
highly anticipated iPhone 5 is going to play a key part in this growth as well.
Investors would be wise to pay attention to China Mobile (NYSE: CHL ) and China
Telecom (NYSE: CHA ) as the iPhone 5s release nears. While both companies stocks
are trading near 52-week highs, the iPhone 5 will be the first Apple product
available on those respective networks. Fall 2011 could prove an auspicious
season for the Chinese telecom industry. Kazaa Finds New Life on iPhone and
iPad: Back when the Best Buy -owned (NYSE: BBY ) Napster digital music service
was the face of Internet music piracy, a number of other small file-sharing
services sprung up in its wake. Among those was Kazaa, a peculiar company that
attempted to monetize file sharing before it was driven into obscurity by
copyright infringement litigation in a number of countries. Owner Sharman
Networks has resurrected Kazaa as a new streaming music and Internet radio
service on the iPhone and iPad. The new service, which costs $10 per month,
works almost identically to others like Rdio and Spotify. Its a curious new
entry in a market thats growing more crowded by the day . As of this writing,
Anthony John Agnello did not own a position in any of the stocks named here.
Follow him on Twitter at
Coming Oct. 4: All Things Digital reported Wednesday that the long-suspected
Apple (NASDAQ: AAPL ) press conference to announce the next iPhone will take
place Oct. 4. This information came from sources close to the situation . Apple
was expected by analysts to announce its new iPhone at the end of September with
an early October release to follow, but All Things Digital s source indicates
the new smartphone will release a few weeks after the press conference. The
seeming delay could be the result of rumored production problems hampering the
iPhone 5s release . The event will be the first major product reveal from the
company since Steve Jobs handed over the CEO reins to former COO Tim Cook.
Shareholders worried that a Jobs-less Apple might fumble a new product launch
shouldnt be concerned considering Apple shares continue to break records . China
Booms Ahead of iPhone 5 Release: Brian White, analyst at Ticonderoga Securities,
issued a note to investors (reprinted at Apple Insider ) discussing the state of
the Chinese telecom industry and things are going pretty well over in the
largest country on earth. The number of subscribers using 3G mobile phones grew
a whopping 7.8% in August, bringing the total number of users to 93.8 million.
White believes this rampant growth will continue throughout the fall, leaving
China with 125 million 3G subscribers by the end of the calendar year. The
highly anticipated iPhone 5 is going to play a key part in this growth as well.
Investors would be wise to pay attention to China Mobile (NYSE: CHL ) and China
Telecom (NYSE: CHA ) as the iPhone 5s release nears. While both companies stocks
are trading near 52-week highs, the iPhone 5 will be the first Apple product
available on those respective networks. Fall 2011 could prove an auspicious
season for the Chinese telecom industry. Kazaa Finds New Life on iPhone and
iPad: Back when the Best Buy -owned (NYSE: BBY ) Napster digital music service
was the face of Internet music piracy, a number of other small file-sharing
services sprung up in its wake. Among those was Kazaa, a peculiar company that
attempted to monetize file sharing before it was driven into obscurity by
copyright infringement litigation in a number of countries. Owner Sharman
Networks has resurrected Kazaa as a new streaming music and Internet radio
service on the iPhone and iPad. The new service, which costs $10 per month,
works almost identically to others like Rdio and Spotify. Its a curious new
entry in a market thats growing more crowded by the day . As of this writing,
Anthony John Agnello did not own a position in any of the stocks named here.
Follow him on Twitter at
Auto Parts Stocks: 3 To Drive, 3 To Park
Even though U.S. new-car sales rose 7.5% in August, don't expect that bump to
take the air out of the right auto parts stocks. Here's why: Before the
recession hit in 2008, the U.S. auto industry was selling an average of 16
million new vehicles a year. And while this year's forecast of 12.5 million
vehicles is a big improvement from the 10.4 million the industry sold two years
ago, it's a far cry from being back to "normal. With high unemployment,
tight credit and sinking consumer confidence, fixing up the clunker in the
driveway might just be the new "normal. Since the average car on the road
today is 11 years old, that translates into a continued growth opportunity for
auto parts stocks. With that in mind, here are three auto parts stocks to drive
and three to park: Drive AutoZone (NYSE: AZO ). AutoZone on Tuesday reported
fourth-quarter earnings growth of 12.1% to $301.5 million ($7.18 per share); net
sales jumped 8% to $2.6 billion. Same-store sales, which measure performance
against direct competitors, grew 4.5%. For the full year, sales increased 9.6%
to $8.1 billion; full-year earnings rose 15% to $849 million. One key measure of
AZO's strength: for the first time in its history, commercial sales accounted
for more than $1 billion. This will be a growth opportunity for AutoZone in the
future. At $327.75, AZO is trading more than 53% above its 52-week low of $214
last September. With a market cap of $23.62 billion, AZO has a
price/earnings-to-growth ratio of 1.14, meaning it's only slightly overvalued.
LKQ Corp. (NASDAQ: LKQX ) LKQ, which will next report earnings on Oct. 24, sells
new and recycled auto parts, providing a lower-cost option for consumers. Last
year's acquisition of Cross Canada Body Parts and Paint Circuit gave LKQ a
strong Canadian presence, as well as 300 more locations in North America. At
$25.51, LKQ is trading more than 27% above its 52-week low of $19.94 last
September. With a market cap of $3.74 billion, LKQ has a PEG ratio of 1.08,
meaning it is fairly valued. O'Reilly Automotive (NASDAQ: ORLY ) O'Reilly,
which next reports earnings on Oct. 26, boasts 3,657 stores in 39 states. ORLY
said last week it has lowered its credit facility from $750 million to $660
million in exchange for lower interest rates and a longer term through 2016.
ORLY set a new 52-week high of $72 on Monday and, at $70.42, is more than 36%
higher than its 52-week low of $51.71 last September. With a market cap of $9.57
billion, the stock has a PEG ratio of 1.19, indicating it is slightly
overvalued.
take the air out of the right auto parts stocks. Here's why: Before the
recession hit in 2008, the U.S. auto industry was selling an average of 16
million new vehicles a year. And while this year's forecast of 12.5 million
vehicles is a big improvement from the 10.4 million the industry sold two years
ago, it's a far cry from being back to "normal. With high unemployment,
tight credit and sinking consumer confidence, fixing up the clunker in the
driveway might just be the new "normal. Since the average car on the road
today is 11 years old, that translates into a continued growth opportunity for
auto parts stocks. With that in mind, here are three auto parts stocks to drive
and three to park: Drive AutoZone (NYSE: AZO ). AutoZone on Tuesday reported
fourth-quarter earnings growth of 12.1% to $301.5 million ($7.18 per share); net
sales jumped 8% to $2.6 billion. Same-store sales, which measure performance
against direct competitors, grew 4.5%. For the full year, sales increased 9.6%
to $8.1 billion; full-year earnings rose 15% to $849 million. One key measure of
AZO's strength: for the first time in its history, commercial sales accounted
for more than $1 billion. This will be a growth opportunity for AutoZone in the
future. At $327.75, AZO is trading more than 53% above its 52-week low of $214
last September. With a market cap of $23.62 billion, AZO has a
price/earnings-to-growth ratio of 1.14, meaning it's only slightly overvalued.
LKQ Corp. (NASDAQ: LKQX ) LKQ, which will next report earnings on Oct. 24, sells
new and recycled auto parts, providing a lower-cost option for consumers. Last
year's acquisition of Cross Canada Body Parts and Paint Circuit gave LKQ a
strong Canadian presence, as well as 300 more locations in North America. At
$25.51, LKQ is trading more than 27% above its 52-week low of $19.94 last
September. With a market cap of $3.74 billion, LKQ has a PEG ratio of 1.08,
meaning it is fairly valued. O'Reilly Automotive (NASDAQ: ORLY ) O'Reilly,
which next reports earnings on Oct. 26, boasts 3,657 stores in 39 states. ORLY
said last week it has lowered its credit facility from $750 million to $660
million in exchange for lower interest rates and a longer term through 2016.
ORLY set a new 52-week high of $72 on Monday and, at $70.42, is more than 36%
higher than its 52-week low of $51.71 last September. With a market cap of $9.57
billion, the stock has a PEG ratio of 1.19, indicating it is slightly
overvalued.
Watch that $1,770 Gold Price Support - If that Breaks, Look for $1,705 Next
Gold Price Close Today : 1,805.50 Change : -1.10 or -0.1% Silver Price Close
Today : 40.42 Change : .34 or 0.8% Platinum Price Close Today : 1,788.20 Change
: 6.30 or 0.4% Palladium Price Close Today : 711.10 Change : -4.90 or -0.7% Gold
Silver Ratio Today : 44.67 Change : -0.41 or 0.99% Dow Industrial : 11,408.66
Change : 7.65 or 0.1% US Dollar Index : 77.03 Change : -0.06 or -0.1% On
Thursday and Friday, 22 and 23 September, I will be travelling and so will not
be sending out commentaries. God willing, I will return on Monday, 26 September.
TODAY something odd happened to the US dollar. It reached support at 76.80, then
Comrade Chairman Ben Bernancubus announced that the Fed will shift its US
treasury debt holdings to longer term bonds. The Nice Government Men will buy
$400 billion of 6 to 30 year bonds over the next 9 months, while selling an
equal amount of 3-year or less debt. Object of this manipulation is to push down
long term interest rates, flooding the market with artificially cheap money
which under their Keynesian thinking means that business will flourish. It
won't, as even this natural born fool from Tennessee could tell them, it will
only prolong the waste and pain and waste more precious resources. These people
ain't got the brains God gave a screwdriver. The Fed's announcement -- or alien
messages from outer space -- sent the dollar index gapping up and it is now
trading at 77.304, up 27.4 basis points but most important of all, tapping on
that 77.40 resistance that has stymied it this week. Dollar is going higher,
count on it, hard as the NGM try to keep it down. Naturally the Euro dropped
0.42% to 1.3659, on its way to 1.3000. Yen gained 0.36% to 130.58c/Y100
(Y76.58/$1). Fed's move hasn't helped the program of raising the euro very much.
What a bunch of goofs. It's like watching the movie, "Three Stooges Run the
Central Bank." And the Three Stooges helped the stock market today, too. Dow
lost a modest 283.82 (2.49%), holding on most of the day but then sinking like a
rock in a churn after the Fed announcement. Dow closed 11,124.84, while the S&P
fell even further, 2.94% (35.33) to 1,166.76. If every doctor was as skilful as
Dr. Ben, we'd have a building boom in this country -- building cemeteries. I
don't know why the GOLD PRICE fell today -- dollar up, gold down? Technically
it's already in a decline, so most likely it's merely following through to the
downside. Gold closed down $1.10 at $1,805.80 on Come, but in the aftermarket
has lost nearly $20 to trade at $1,786.90. Gold's five day chart has strong
support at $1,780 and stronger still at $1,770. Picture's not as clear as you
might think, as yesterday's action looks like an impulsive move up, and today's
might be merely a correction to yesterday. Awww, stop over-complicating things!
Watch that $1,770 support. If that breaks, look for $1,705 next. Overhead GOLD
would have to earnestly challenge $1,920 to reverse course. No point in talking
about upside, though, until and unless gold first clears its 20 day moving
average at $1,822. SILVER backtalked gold today, rising 33.6c on Comex to
4042.3c while gold fell. Never quite know what to make out of those bi-metallic
closes, because sometimes they foretell a strong up day. Yet that usually comes
after they've been attacked for a few days and dropped. Just staring at the
chart, today struck silver a deep wound. Since Monday's 3900c low the SILVER
PRICE has climbed all the way to 4068c, but after that Fed announcement silver
just fainted dead away, dropping to 3957c. Keep you eye on silver's behavior at
3900c. If it falls through that, we have to reckon with 3700, even 3675c.
Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. -
Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2011, The
Moneychanger. May not be republished in any form, including electronically,
without our express permission. To avoid confusion, please remember that the
comments above have a very short time horizon. Always invest with the primary
trend. Gold's primary trend is up, targeting at least $3,130.00; silver's
primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend
is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or
US$-denominated assets, primary trend down; real estate in a bubble, primary
trend way down. Whenever I write "Stay out of stocks" readers inevitably ask,
"Do you mean precious metals mining stocks, too?" No, I don't. Be advised and
warned: Do NOT use these commentaries to trade futures contracts. I don't intend
them for that or write them with that outlook. I write them for long-term
investors in physical metals. Take them as entertainment, but not as a timing
service for futures.
Today : 40.42 Change : .34 or 0.8% Platinum Price Close Today : 1,788.20 Change
: 6.30 or 0.4% Palladium Price Close Today : 711.10 Change : -4.90 or -0.7% Gold
Silver Ratio Today : 44.67 Change : -0.41 or 0.99% Dow Industrial : 11,408.66
Change : 7.65 or 0.1% US Dollar Index : 77.03 Change : -0.06 or -0.1% On
Thursday and Friday, 22 and 23 September, I will be travelling and so will not
be sending out commentaries. God willing, I will return on Monday, 26 September.
TODAY something odd happened to the US dollar. It reached support at 76.80, then
Comrade Chairman Ben Bernancubus announced that the Fed will shift its US
treasury debt holdings to longer term bonds. The Nice Government Men will buy
$400 billion of 6 to 30 year bonds over the next 9 months, while selling an
equal amount of 3-year or less debt. Object of this manipulation is to push down
long term interest rates, flooding the market with artificially cheap money
which under their Keynesian thinking means that business will flourish. It
won't, as even this natural born fool from Tennessee could tell them, it will
only prolong the waste and pain and waste more precious resources. These people
ain't got the brains God gave a screwdriver. The Fed's announcement -- or alien
messages from outer space -- sent the dollar index gapping up and it is now
trading at 77.304, up 27.4 basis points but most important of all, tapping on
that 77.40 resistance that has stymied it this week. Dollar is going higher,
count on it, hard as the NGM try to keep it down. Naturally the Euro dropped
0.42% to 1.3659, on its way to 1.3000. Yen gained 0.36% to 130.58c/Y100
(Y76.58/$1). Fed's move hasn't helped the program of raising the euro very much.
What a bunch of goofs. It's like watching the movie, "Three Stooges Run the
Central Bank." And the Three Stooges helped the stock market today, too. Dow
lost a modest 283.82 (2.49%), holding on most of the day but then sinking like a
rock in a churn after the Fed announcement. Dow closed 11,124.84, while the S&P
fell even further, 2.94% (35.33) to 1,166.76. If every doctor was as skilful as
Dr. Ben, we'd have a building boom in this country -- building cemeteries. I
don't know why the GOLD PRICE fell today -- dollar up, gold down? Technically
it's already in a decline, so most likely it's merely following through to the
downside. Gold closed down $1.10 at $1,805.80 on Come, but in the aftermarket
has lost nearly $20 to trade at $1,786.90. Gold's five day chart has strong
support at $1,780 and stronger still at $1,770. Picture's not as clear as you
might think, as yesterday's action looks like an impulsive move up, and today's
might be merely a correction to yesterday. Awww, stop over-complicating things!
Watch that $1,770 support. If that breaks, look for $1,705 next. Overhead GOLD
would have to earnestly challenge $1,920 to reverse course. No point in talking
about upside, though, until and unless gold first clears its 20 day moving
average at $1,822. SILVER backtalked gold today, rising 33.6c on Comex to
4042.3c while gold fell. Never quite know what to make out of those bi-metallic
closes, because sometimes they foretell a strong up day. Yet that usually comes
after they've been attacked for a few days and dropped. Just staring at the
chart, today struck silver a deep wound. Since Monday's 3900c low the SILVER
PRICE has climbed all the way to 4068c, but after that Fed announcement silver
just fainted dead away, dropping to 3957c. Keep you eye on silver's behavior at
3900c. If it falls through that, we have to reckon with 3700, even 3675c.
Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. -
Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2011, The
Moneychanger. May not be republished in any form, including electronically,
without our express permission. To avoid confusion, please remember that the
comments above have a very short time horizon. Always invest with the primary
trend. Gold's primary trend is up, targeting at least $3,130.00; silver's
primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend
is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or
US$-denominated assets, primary trend down; real estate in a bubble, primary
trend way down. Whenever I write "Stay out of stocks" readers inevitably ask,
"Do you mean precious metals mining stocks, too?" No, I don't. Be advised and
warned: Do NOT use these commentaries to trade futures contracts. I don't intend
them for that or write them with that outlook. I write them for long-term
investors in physical metals. Take them as entertainment, but not as a timing
service for futures.
Gold Turns Lower, Dollar Climbs After Fed Meeting
XCSFDHG46767FHJHJF
DG365FD46564GFH654FU898 Gold turned lower and the U.S. dollar rallied after the Federal Reserve announced plans to extend the average maturity of its holdings of U.S. Treasuries, also known as Operation Twist. Gold futures – per the December 2011 contract – slid from as high as $1,818 to as low as $1,782 following the FOMC announcement, and remained lower by $17.80, or 1.0%, at $1,791.30 per ounce as of 2:59pm ET. Gold equities relinquished their gains alongside the yellow metal, with the Market Vectors Gold Miners ETF (GDX) unchanged at $65.63 per share. Silver pared its gains considerably this afternoon, as it retreated from an intra-day high of $40.77 to trade higher by just 0.1% at $40.19 per ounce. The U.S. Dollar Index , a trade-weighted measure of the greenback versus several of the world’s other leading currencies, climbed from negative territory on the day near 76.80 to as high as 77.33.
Will the Fed Channel Chubby Checker?
XCSFDHG46767FHJHJF
tdp2664 InvestorPlace Can the Federal Reserve save the economy — and the stock market — by “doing the twist”? Monday’s early rally for the Dow showed hope still is bubbling among some investors, even if it might not quite spring eternal. (The bounce largely faded by the close.) Today, though, the nation’s central bank will announce the results of its two-day policy meeting in Washington — and the “hopers” are looking for Chairman Ben Bernanke to spin a dusty vinyl platter from the Federal Reserve’s oldies collection. Back in the early 1960s, in an effort to stimulate a sluggish economy, the Fed — working hand-in-glove with the Kennedy administration’s Treasury Department — instituted Operation Twist. This maneuver called for the central bank to buy long-term Treasury bonds and simultaneously sell government paper with shorter maturities. The goal: Drive down long-term borrowing costs for homebuyers and businesses. Let’s assume the Fed decides to “twist” the yield curve again. Will Chubby Checker’s old tune get the U.S. economy jiving again and help us steer clear of a double-dip recession? Maybe, in the same sense that each of Bernanke’s two previous quantitative-easing programs gave business activity a brief, artificial boost. But let’s face it. By almost any measure (except corporate profits), the economic recovery since 2009 has been one of the weakest on record. While businesses have done a fantastic job of adapting to survive this adverse climate, the employment outlook continues to be dismal. As long as that remains true, stocks will be on shaky ground. Dazzling rallies will give way to sudden, shocking plunges (like that of early August). The current run-up, dating from the Aug. 8 closing low at 1,119 on the S&P 500, has reached a tender stage. Twice in recent sessions (Friday and again Monday), the S&P banged into overhead resistance at 1,220. This is worrisome, because in late August and early September, the S&P was able to climb 10 points higher (to 1,230) before hitting a short-term ceiling. The Fed will need to pull a blue-ribbon bunny out of the hat today. Otherwise, we’ll probably head back down for a test of the August index lows during the first half of October.
Carnival Shares — 3 Pros, 3 Cons
XCSFDHG46767FHJHJF
tdp2664 InvestorPlace Does anyone really not like cruises? It seems unlikely. But when it comes to investing in the industry, there is definitely skepticism. Take a look at Carnival
Dow Plunges 284, Markets Not Dancing to the Twist
XCSFDHG46767FHJHJF
DG365FD46564GFH654FU898 The markets do not appear to be very pleased with Operation Twist, at least not at first glance.
5 Things Every Investor Needs to Know About This Market
The third quarter is coming to an end, and after a rough summer, investors are
looking for ways to end the year with a bang. Last week, I discussed fresh picks
for the autumn and I think those stocks will serve you well in the months ahead.
But there is a lot going on in this market, and its important to understand
exactly which factors are impacting stocks and what it means for you. This is
why today I want to discuss current market conditions and what you need to know
to navigate them. The following are five tips I think every investor should
know: 1. European Debt Clouds the Market Last week, we saw the Dow tack on 500
points over the course of five days. Then, Monday, it fell more than 100 points.
Much of the volatility can be attributed to concerns and optimism over Greeces
debt dilemma. For months weve watched the saga unfold. Despite budget cuts and
new policies, Greece has not been able to get a hold of its growing debt. The
countrys impending default has raised concerns and sent markets reeling
worldwide. Even with nations offering assistance to bailout Greece, it hasnt
been enough to pay off the countrys approximately $500 billion debt. Greece
hasnt been the only European country in the news in recent months. Several
including Portugal, Spain and Germany have had their own difficulties. Now that
the European Central Bank is stepping in, further questions are arising. A
debate over allowing the default vs. bailing out Greeces troubled economy is
raging. It is uncertain how each scenario will impact the European economy, and
all the countries apart of it, in both the short term and long term. So how does
the European crisis impact us across the pond? Well, weve already seen the
weight it puts on the markets. A large part of the volatility they experienced
this summer can be attributed to European economic news. The fact is U.S.
businesses have close ties with European companies, as well as all across the
globe. When one region is in trouble, the others feel the sting. Investors
become understandably wary when global economic problems occur because its
inevitable that the U.S. economy will experience some of the aftershocks. But
its important that investors remember that there are smart investments to make
in the current market. I will discuss these a little later.
looking for ways to end the year with a bang. Last week, I discussed fresh picks
for the autumn and I think those stocks will serve you well in the months ahead.
But there is a lot going on in this market, and its important to understand
exactly which factors are impacting stocks and what it means for you. This is
why today I want to discuss current market conditions and what you need to know
to navigate them. The following are five tips I think every investor should
know: 1. European Debt Clouds the Market Last week, we saw the Dow tack on 500
points over the course of five days. Then, Monday, it fell more than 100 points.
Much of the volatility can be attributed to concerns and optimism over Greeces
debt dilemma. For months weve watched the saga unfold. Despite budget cuts and
new policies, Greece has not been able to get a hold of its growing debt. The
countrys impending default has raised concerns and sent markets reeling
worldwide. Even with nations offering assistance to bailout Greece, it hasnt
been enough to pay off the countrys approximately $500 billion debt. Greece
hasnt been the only European country in the news in recent months. Several
including Portugal, Spain and Germany have had their own difficulties. Now that
the European Central Bank is stepping in, further questions are arising. A
debate over allowing the default vs. bailing out Greeces troubled economy is
raging. It is uncertain how each scenario will impact the European economy, and
all the countries apart of it, in both the short term and long term. So how does
the European crisis impact us across the pond? Well, weve already seen the
weight it puts on the markets. A large part of the volatility they experienced
this summer can be attributed to European economic news. The fact is U.S.
businesses have close ties with European companies, as well as all across the
globe. When one region is in trouble, the others feel the sting. Investors
become understandably wary when global economic problems occur because its
inevitable that the U.S. economy will experience some of the aftershocks. But
its important that investors remember that there are smart investments to make
in the current market. I will discuss these a little later.
Dow Plunges 284, Markets Not Dancing to the Twist
The markets do not appear to be very pleased with Operation Twist, at least not
at first glance.
at first glance.
5 Reasons Meg Whitman Can’t Fix Hewlett-Packard
Shares of Hewlett-Packard (NYSE: HPQ ) are soaring as much as 10% today on
rumors that the tech giant's board could be kicking Chief Executive Leo
Apotheker to the curb. His replacement as Hewlett-Packard CEO allegedly is
former eBay (NASDAQ: EBAY ) CEO Meg Whitman. But don't be fooled this is just
the latest dumb move at Hewlett-Packard, a stock plagued not just by a revolving
door in the corner office but by a glue-and-sticky-tape approach to its current
ugly state of affairs. I won't bore you with a laundry list of HP missteps
during the past few years – they are many, and well-known. (I previously wrote
an exhaustive column about how Hewlett-Packard embodies everything that's
wrong with corporate America , for those who want an in-depth look at this
dumpster fire of a company.) That's all in the past. What is most troubling is
that, after almost $30 billion in buyouts since 2008 ($10 billion for Autonomy +
$1.2 billion for Palm + $2.7 billion for 3Par + $2.35 for 3Com + $13.6 billion
for Electronic data systems), there is much more corporate shenanigans going on
than there is growth to manage. Meaning that even if you want to give Whitman
the benefit of the doubt and grant her 100% credit for the success of eBay, the
Hewlett-Packard mess is just too different a situation for her to be a good fit.
Here are five reasons Whitman won't be able to fix Hewlett-Packard: No
Corporate IT Experience: Whitman's tenure at eBay was fundamentally defined by
connecting with consumers. Even the "sellers" on the auction site are
largely average joes and tiny out-of-the-garage businesses. Before that, she
worked at Hasbro (NYSE: HAS ) to market Playskool and Mr. Potato Head. That's
a far cry from cloud computing, tech support, networking hardware and bulk
computer sales to Fortune 500 companies. On the plus side, her consumer focus
might be able to help prop up HP printer and laptop sales with Hewlett-Packard
killing its TouchPad tablet amid the Apple (NASDAQ: AAPL ) iPad craze and
planning to spin off its PC business. It might make sense to appoint Meg Whitman
CEO of this smaller consumer-focused division, but it makes no sense to appoint
her now. She is ill suited for the very Big Business nature of corporate IT
sales, which is HP's core business. Her Heart Might Not Be In It : Let's be
honest: Whitman is 55 years old with a net worth of over $1 billion and the
bragging rights of building one of the most iconic names in the tech sector.
What does she have left to prove? And what incentive does she have for the
60-hour work weeks that will be required to quickly fix the mess at HP? It takes
guts and determination to race into a burning building like this and perhaps
Meg Whitman has it. But investors should have serious doubts. She ran for
governor in 2009, for Pete's sake. If aspiring to become a politician isn't
waiving the white flag on a serious business career, I don't know what its.
It's Not Growth HP Needs, But Strategy: Whitman joined eBay on March 1998,
when it had 30 employees and the site was a simple, ugly web page. Juxtapose
that with Hewlett-Packard, which got its humble beginnings in 1935 and had one
of its namesake founders on the board until 1993. Thanks to decades of growth
and expansion, the behemoth now boasts a list of products, divisions and
services that boggles the mind. In short, it's not growth HP needs, but
streamlining and strategy. Leading a fast-growth business like eBay and taking
it public is no small task, and kudos to Whitman for her success on that front.
But frankly, those experiences don't compare at all to the task of hacking
through the weeds at HP. There's a reason why many of the best entrepreneurs
often sell out of a company once it gets big-time and then start fresh on
another start-up because they understand the very different leadership roles in
small and big businesses. This is not to say that Whitman is incapable of the
task, just that all of her previous experiences mean very little and she would
have to have the self-awareness of this going in. Buyouts are the Bane of HP's
Existence : Along the same lines of growth vs. strategy, at eBay, Whitman's
biggest feather in her cap was the 2002 PayPal acquisition for $1.5 billion.
Recent earnings reports prove the continued contribution to eBay's bottom line
from this great addition, and future potential of PayPal in the mobile device
space cannot be understated. However, HPQ already has made a mess of things
trying a "growth by buyout" philosophy. If Whitman is looking to leave her
fingerprints on HP, she had better look for a different approach then buyouts.
Shareholders better hope she takes to heart the cautionary tale of her $3.1
billion boondoggle on Skype rather than try and recreate the PayPal deal. HP
Shareholders Have Little Patience: Perhaps the biggest problem is that even if
Whitman can manage to overcome all of these hurdles, the bottom line is that
shareholders are furious and want to see results. The stock is off 40% in 2011
and is trading at 2005 valuations. HP stock pays a dividend of less than 2%
despite spending tens of billions on doomed buyouts. Earnings and revenue will
be up slightly this year, but there is a general consensus that the world is
passing Hewlett-Packard by. Whitman will have a very short period of time to
prove herself witness the brief tenure of saintly Carol Bartz at Yahoo (NASDAQ:
YHOO ) as one so-called CEO upgrade that didn't work or didn't work fast
enough. And if Whitman doesn't show her stuff within a year or two, the sad
reality is that the musical chairs will continue at HP as the leadership vacuum
continues. Jeff Reeves is editor of InvestorPlace.com. As of this writing, he
did not own a position in any of the stocks named here. Write him at
editor@investorplace.com , follow him on Twitter via @JeffReevesIP and become a
fan of InvestorPlace on Facebook .
rumors that the tech giant's board could be kicking Chief Executive Leo
Apotheker to the curb. His replacement as Hewlett-Packard CEO allegedly is
former eBay (NASDAQ: EBAY ) CEO Meg Whitman. But don't be fooled this is just
the latest dumb move at Hewlett-Packard, a stock plagued not just by a revolving
door in the corner office but by a glue-and-sticky-tape approach to its current
ugly state of affairs. I won't bore you with a laundry list of HP missteps
during the past few years – they are many, and well-known. (I previously wrote
an exhaustive column about how Hewlett-Packard embodies everything that's
wrong with corporate America , for those who want an in-depth look at this
dumpster fire of a company.) That's all in the past. What is most troubling is
that, after almost $30 billion in buyouts since 2008 ($10 billion for Autonomy +
$1.2 billion for Palm + $2.7 billion for 3Par + $2.35 for 3Com + $13.6 billion
for Electronic data systems), there is much more corporate shenanigans going on
than there is growth to manage. Meaning that even if you want to give Whitman
the benefit of the doubt and grant her 100% credit for the success of eBay, the
Hewlett-Packard mess is just too different a situation for her to be a good fit.
Here are five reasons Whitman won't be able to fix Hewlett-Packard: No
Corporate IT Experience: Whitman's tenure at eBay was fundamentally defined by
connecting with consumers. Even the "sellers" on the auction site are
largely average joes and tiny out-of-the-garage businesses. Before that, she
worked at Hasbro (NYSE: HAS ) to market Playskool and Mr. Potato Head. That's
a far cry from cloud computing, tech support, networking hardware and bulk
computer sales to Fortune 500 companies. On the plus side, her consumer focus
might be able to help prop up HP printer and laptop sales with Hewlett-Packard
killing its TouchPad tablet amid the Apple (NASDAQ: AAPL ) iPad craze and
planning to spin off its PC business. It might make sense to appoint Meg Whitman
CEO of this smaller consumer-focused division, but it makes no sense to appoint
her now. She is ill suited for the very Big Business nature of corporate IT
sales, which is HP's core business. Her Heart Might Not Be In It : Let's be
honest: Whitman is 55 years old with a net worth of over $1 billion and the
bragging rights of building one of the most iconic names in the tech sector.
What does she have left to prove? And what incentive does she have for the
60-hour work weeks that will be required to quickly fix the mess at HP? It takes
guts and determination to race into a burning building like this and perhaps
Meg Whitman has it. But investors should have serious doubts. She ran for
governor in 2009, for Pete's sake. If aspiring to become a politician isn't
waiving the white flag on a serious business career, I don't know what its.
It's Not Growth HP Needs, But Strategy: Whitman joined eBay on March 1998,
when it had 30 employees and the site was a simple, ugly web page. Juxtapose
that with Hewlett-Packard, which got its humble beginnings in 1935 and had one
of its namesake founders on the board until 1993. Thanks to decades of growth
and expansion, the behemoth now boasts a list of products, divisions and
services that boggles the mind. In short, it's not growth HP needs, but
streamlining and strategy. Leading a fast-growth business like eBay and taking
it public is no small task, and kudos to Whitman for her success on that front.
But frankly, those experiences don't compare at all to the task of hacking
through the weeds at HP. There's a reason why many of the best entrepreneurs
often sell out of a company once it gets big-time and then start fresh on
another start-up because they understand the very different leadership roles in
small and big businesses. This is not to say that Whitman is incapable of the
task, just that all of her previous experiences mean very little and she would
have to have the self-awareness of this going in. Buyouts are the Bane of HP's
Existence : Along the same lines of growth vs. strategy, at eBay, Whitman's
biggest feather in her cap was the 2002 PayPal acquisition for $1.5 billion.
Recent earnings reports prove the continued contribution to eBay's bottom line
from this great addition, and future potential of PayPal in the mobile device
space cannot be understated. However, HPQ already has made a mess of things
trying a "growth by buyout" philosophy. If Whitman is looking to leave her
fingerprints on HP, she had better look for a different approach then buyouts.
Shareholders better hope she takes to heart the cautionary tale of her $3.1
billion boondoggle on Skype rather than try and recreate the PayPal deal. HP
Shareholders Have Little Patience: Perhaps the biggest problem is that even if
Whitman can manage to overcome all of these hurdles, the bottom line is that
shareholders are furious and want to see results. The stock is off 40% in 2011
and is trading at 2005 valuations. HP stock pays a dividend of less than 2%
despite spending tens of billions on doomed buyouts. Earnings and revenue will
be up slightly this year, but there is a general consensus that the world is
passing Hewlett-Packard by. Whitman will have a very short period of time to
prove herself witness the brief tenure of saintly Carol Bartz at Yahoo (NASDAQ:
YHOO ) as one so-called CEO upgrade that didn't work or didn't work fast
enough. And if Whitman doesn't show her stuff within a year or two, the sad
reality is that the musical chairs will continue at HP as the leadership vacuum
continues. Jeff Reeves is editor of InvestorPlace.com. As of this writing, he
did not own a position in any of the stocks named here. Write him at
editor@investorplace.com , follow him on Twitter via @JeffReevesIP and become a
fan of InvestorPlace on Facebook .
Google Inc. (NASDAQ:GOOG) Adding +1 To Ads
Google Inc. (NASDAQ:GOOG) has decided to add the +1 button to display ads.
Google Inc. (NASDAQ:GOOG) Adding +1 To Ads Google Inc. (NASDAQ:GOOG) users will
soon be able to recommend display ads to their friends, as the company is going
to add +1 button to Google Inc. (NASDAQ:GOOG) Display Network ads. The company
will roll out the +1 badge to display ads in October, enabling Google+ users to
find whether their friends +1'd an ad. Google Inc. (NASDAQ:GOOG)'s senior
software engineer Eider Oliveira said, "Because a recommendation from a friend
is such a strong signal of relevance, the Google Inc. (NASDAQ:GOOG) Display
Network gives ads that have been recommended an extra boost by including them in
the auction for any page a friend visits". Google Inc. (NASDAQ:GOOG) stocks
are currently standing at 546.63. Price History Last Price: 546.63 52 Week Low /
High: 473.02 / 642.96 50 Day Moving Average: 555.86 6 Month Price Change %:
-5.2% 12 Month Price Change %: 11.5%
Google Inc. (NASDAQ:GOOG) Adding +1 To Ads Google Inc. (NASDAQ:GOOG) users will
soon be able to recommend display ads to their friends, as the company is going
to add +1 button to Google Inc. (NASDAQ:GOOG) Display Network ads. The company
will roll out the +1 badge to display ads in October, enabling Google+ users to
find whether their friends +1'd an ad. Google Inc. (NASDAQ:GOOG)'s senior
software engineer Eider Oliveira said, "Because a recommendation from a friend
is such a strong signal of relevance, the Google Inc. (NASDAQ:GOOG) Display
Network gives ads that have been recommended an extra boost by including them in
the auction for any page a friend visits". Google Inc. (NASDAQ:GOOG) stocks
are currently standing at 546.63. Price History Last Price: 546.63 52 Week Low /
High: 473.02 / 642.96 50 Day Moving Average: 555.86 6 Month Price Change %:
-5.2% 12 Month Price Change %: 11.5%
Microsoft Corporation (NASDAQ:MSFT) Signs Casio Deal
Microsoft Corporation (NASDAQ:MSFT) has signed a patent agreement with Casio
Microsoft Corporation (NASDAQ:MSFT) Signs Casio Deal Microsoft Corporation
(NASDAQ:MSFT) and Casio Computer Co. Ltd. Have entered into a multiyear patent
cross-licensing agreement. According to the agreement, Casio's customers will
be provided with patent coverage for their use of Linux in certain Casio
devices. Horacio Gutierrez, corporate vice president and deputy general counsel
of Intellectual Property Group at Microsoft Corporation (NASDAQ:MSFT), said
that, Microsoft Corporation (NASDAQ:MSFT) is pleased to reach an agreement and
to see continued recognition of the value of our patent portfolio, particularly
as it relates to operating systems". Casio utilizes a wide variety of
Microsoft Corporation (NASDAQ:MSFT) software for its products, including its
industrial handheld terminals and business information systems. Microsoft Corp.
(NASDAQ:MSFT) stocks were at 26.98 at the end of the last days trading. Theres
been a 11.2% change in the stock price over the past 3 months. Microsoft Corp.
(NASDAQ:MSFT) Analyst Advice Consensus Opinion: Moderate Buy Mean
recommendation: 1.72 (1=Strong Buy, 5=Strong Sell) 3 Months Ago: 1.84 Zacks
Rank: 28 out of 91 in the industry
Microsoft Corporation (NASDAQ:MSFT) Signs Casio Deal Microsoft Corporation
(NASDAQ:MSFT) and Casio Computer Co. Ltd. Have entered into a multiyear patent
cross-licensing agreement. According to the agreement, Casio's customers will
be provided with patent coverage for their use of Linux in certain Casio
devices. Horacio Gutierrez, corporate vice president and deputy general counsel
of Intellectual Property Group at Microsoft Corporation (NASDAQ:MSFT), said
that, Microsoft Corporation (NASDAQ:MSFT) is pleased to reach an agreement and
to see continued recognition of the value of our patent portfolio, particularly
as it relates to operating systems". Casio utilizes a wide variety of
Microsoft Corporation (NASDAQ:MSFT) software for its products, including its
industrial handheld terminals and business information systems. Microsoft Corp.
(NASDAQ:MSFT) stocks were at 26.98 at the end of the last days trading. Theres
been a 11.2% change in the stock price over the past 3 months. Microsoft Corp.
(NASDAQ:MSFT) Analyst Advice Consensus Opinion: Moderate Buy Mean
recommendation: 1.72 (1=Strong Buy, 5=Strong Sell) 3 Months Ago: 1.84 Zacks
Rank: 28 out of 91 in the industry
Will the Fed Channel Chubby Checker?
Can the Federal Reserve save the economy and the stock market by doing the
twist? Mondays early rally for the Dow showed hope still is bubbling among some
investors, even if it might not quite spring eternal. (The bounce largely faded
by the close.) Today, though, the nations central bank will announce the results
of its two-day policy meeting in Washington and the hopers are looking for
Chairman Ben Bernanke to spin a dusty vinyl platter from the Federal Reserves
oldies collection. Back in the early 1960s, in an effort to stimulate a sluggish
economy, the Fed working hand-in-glove with the Kennedy administrations
Treasury Department instituted Operation Twist. This maneuver called for the
central bank to buy long-term Treasury bonds and simultaneously sell government
paper with shorter maturities. The goal: Drive down long-term borrowing costs
for homebuyers and businesses. Lets assume the Fed decides to twist the yield
curve again. Will Chubby Checkers old tune get the U.S. economy jiving again and
help us steer clear of a double-dip recession? Maybe, in the same sense that
each of Bernankes two previous quantitative-easing programs gave business
activity a brief, artificial boost. But lets face it. By almost any measure
(except corporate profits), the economic recovery since 2009 has been one of the
weakest on record. While businesses have done a fantastic job of adapting to
survive this adverse climate, the employment outlook continues to be dismal. As
long as that remains true, stocks will be on shaky ground. Dazzling rallies will
give way to sudden, shocking plunges (like that of early August). The current
run-up, dating from the Aug. 8 closing low at 1,119 on the S&P 500, has reached
a tender stage. Twice in recent sessions (Friday and again Monday), the S&P
banged into overhead resistance at 1,220. This is worrisome, because in late
August and early September, the S&P was able to climb 10 points higher (to
1,230) before hitting a short-term ceiling. The Fed will need to pull a
blue-ribbon bunny out of the hat today. Otherwise, well probably head back down
for a test of the August index lows during the first half of October.
twist? Mondays early rally for the Dow showed hope still is bubbling among some
investors, even if it might not quite spring eternal. (The bounce largely faded
by the close.) Today, though, the nations central bank will announce the results
of its two-day policy meeting in Washington and the hopers are looking for
Chairman Ben Bernanke to spin a dusty vinyl platter from the Federal Reserves
oldies collection. Back in the early 1960s, in an effort to stimulate a sluggish
economy, the Fed working hand-in-glove with the Kennedy administrations
Treasury Department instituted Operation Twist. This maneuver called for the
central bank to buy long-term Treasury bonds and simultaneously sell government
paper with shorter maturities. The goal: Drive down long-term borrowing costs
for homebuyers and businesses. Lets assume the Fed decides to twist the yield
curve again. Will Chubby Checkers old tune get the U.S. economy jiving again and
help us steer clear of a double-dip recession? Maybe, in the same sense that
each of Bernankes two previous quantitative-easing programs gave business
activity a brief, artificial boost. But lets face it. By almost any measure
(except corporate profits), the economic recovery since 2009 has been one of the
weakest on record. While businesses have done a fantastic job of adapting to
survive this adverse climate, the employment outlook continues to be dismal. As
long as that remains true, stocks will be on shaky ground. Dazzling rallies will
give way to sudden, shocking plunges (like that of early August). The current
run-up, dating from the Aug. 8 closing low at 1,119 on the S&P 500, has reached
a tender stage. Twice in recent sessions (Friday and again Monday), the S&P
banged into overhead resistance at 1,220. This is worrisome, because in late
August and early September, the S&P was able to climb 10 points higher (to
1,230) before hitting a short-term ceiling. The Fed will need to pull a
blue-ribbon bunny out of the hat today. Otherwise, well probably head back down
for a test of the August index lows during the first half of October.
Gold Turns Lower, Dollar Climbs After Fed Meeting
Gold turned lower and the U.S. dollar rallied after the Federal Reserve
announced plans to extend the average maturity of its holdings of U.S.
Treasuries, also known as Operation Twist. Gold futures per the December 2011
contract slid from as high as $1,818 to as low as $1,782 following the FOMC
announcement, and remained lower by $17.80, or 1.0%, at $1,791.30 per ounce as
of 2:59pm ET. Gold equities relinquished their gains alongside the yellow metal,
with the Market Vectors Gold Miners ETF (GDX) unchanged at $65.63 per share.
Silver pared its gains considerably this afternoon, as it retreated from an
intra-day high of $40.77 to trade higher by just 0.1% at $40.19 per ounce. The
U.S. Dollar Index, a trade-weighted measure of the greenback versus several of
the worlds other leading currencies, climbed from negative territory on the day
near 76.80 to as high as 77.33.
announced plans to extend the average maturity of its holdings of U.S.
Treasuries, also known as Operation Twist. Gold futures per the December 2011
contract slid from as high as $1,818 to as low as $1,782 following the FOMC
announcement, and remained lower by $17.80, or 1.0%, at $1,791.30 per ounce as
of 2:59pm ET. Gold equities relinquished their gains alongside the yellow metal,
with the Market Vectors Gold Miners ETF (GDX) unchanged at $65.63 per share.
Silver pared its gains considerably this afternoon, as it retreated from an
intra-day high of $40.77 to trade higher by just 0.1% at $40.19 per ounce. The
U.S. Dollar Index, a trade-weighted measure of the greenback versus several of
the worlds other leading currencies, climbed from negative territory on the day
near 76.80 to as high as 77.33.
Will the Fed Channel Chubby Checker?
Can the Federal Reserve save the economy and the stock market by doing the
twist? Mondays early rally for the Dow showed hope still is bubbling among some
investors, even if it might not quite spring eternal. (The bounce largely faded
by the close.) Today, though, the nations central bank will announce the results
of its two-day policy meeting in Washington and the hopers are looking for
Chairman Ben Bernanke to spin a dusty vinyl platter from the Federal Reserves
oldies collection. Back in the early 1960s, in an effort to stimulate a sluggish
economy, the Fed working hand-in-glove with the Kennedy administrations
Treasury Department instituted Operation Twist. This maneuver called for the
central bank to buy long-term Treasury bonds and simultaneously sell government
paper with shorter maturities. The goal: Drive down long-term borrowing costs
for homebuyers and businesses. Lets assume the Fed decides to twist the yield
curve again. Will Chubby Checkers old tune get the U.S. economy jiving again and
help us steer clear of a double-dip recession? Maybe, in the same sense that
each of Bernankes two previous quantitative-easing programs gave business
activity a brief, artificial boost. But lets face it. By almost any measure
(except corporate profits), the economic recovery since 2009 has been one of the
weakest on record. While businesses have done a fantastic job of adapting to
survive this adverse climate, the employment outlook continues to be dismal. As
long as that remains true, stocks will be on shaky ground. Dazzling rallies will
give way to sudden, shocking plunges (like that of early August). The current
run-up, dating from the Aug. 8 closing low at 1,119 on the S&P 500, has reached
a tender stage. Twice in recent sessions (Friday and again Monday), the S&P
banged into overhead resistance at 1,220. This is worrisome, because in late
August and early September, the S&P was able to climb 10 points higher (to
1,230) before hitting a short-term ceiling. The Fed will need to pull a
blue-ribbon bunny out of the hat today. Otherwise, well probably head back down
for a test of the August index lows during the first half of October.
twist? Mondays early rally for the Dow showed hope still is bubbling among some
investors, even if it might not quite spring eternal. (The bounce largely faded
by the close.) Today, though, the nations central bank will announce the results
of its two-day policy meeting in Washington and the hopers are looking for
Chairman Ben Bernanke to spin a dusty vinyl platter from the Federal Reserves
oldies collection. Back in the early 1960s, in an effort to stimulate a sluggish
economy, the Fed working hand-in-glove with the Kennedy administrations
Treasury Department instituted Operation Twist. This maneuver called for the
central bank to buy long-term Treasury bonds and simultaneously sell government
paper with shorter maturities. The goal: Drive down long-term borrowing costs
for homebuyers and businesses. Lets assume the Fed decides to twist the yield
curve again. Will Chubby Checkers old tune get the U.S. economy jiving again and
help us steer clear of a double-dip recession? Maybe, in the same sense that
each of Bernankes two previous quantitative-easing programs gave business
activity a brief, artificial boost. But lets face it. By almost any measure
(except corporate profits), the economic recovery since 2009 has been one of the
weakest on record. While businesses have done a fantastic job of adapting to
survive this adverse climate, the employment outlook continues to be dismal. As
long as that remains true, stocks will be on shaky ground. Dazzling rallies will
give way to sudden, shocking plunges (like that of early August). The current
run-up, dating from the Aug. 8 closing low at 1,119 on the S&P 500, has reached
a tender stage. Twice in recent sessions (Friday and again Monday), the S&P
banged into overhead resistance at 1,220. This is worrisome, because in late
August and early September, the S&P was able to climb 10 points higher (to
1,230) before hitting a short-term ceiling. The Fed will need to pull a
blue-ribbon bunny out of the hat today. Otherwise, well probably head back down
for a test of the August index lows during the first half of October.
Microsoft Corporation (NASDAQ:MSFT) Signs Casio Deal
Microsoft Corporation (NASDAQ:MSFT) has signed a patent agreement with Casio
Microsoft Corporation (NASDAQ:MSFT) Signs Casio Deal Microsoft Corporation
(NASDAQ:MSFT) and Casio Computer Co. Ltd. Have entered into a multiyear patent
cross-licensing agreement. According to the agreement, Casio's customers will
be provided with patent coverage for their use of Linux in certain Casio
devices. Horacio Gutierrez, corporate vice president and deputy general counsel
of Intellectual Property Group at Microsoft Corporation (NASDAQ:MSFT), said
that, Microsoft Corporation (NASDAQ:MSFT) is pleased to reach an agreement and
to see continued recognition of the value of our patent portfolio, particularly
as it relates to operating systems". Casio utilizes a wide variety of
Microsoft Corporation (NASDAQ:MSFT) software for its products, including its
industrial handheld terminals and business information systems. Microsoft Corp.
(NASDAQ:MSFT) stocks were at 26.98 at the end of the last days trading. Theres
been a 11.2% change in the stock price over the past 3 months. Microsoft Corp.
(NASDAQ:MSFT) Analyst Advice Consensus Opinion: Moderate Buy Mean
recommendation: 1.72 (1=Strong Buy, 5=Strong Sell) 3 Months Ago: 1.84 Zacks
Rank: 28 out of 91 in the industry
Microsoft Corporation (NASDAQ:MSFT) Signs Casio Deal Microsoft Corporation
(NASDAQ:MSFT) and Casio Computer Co. Ltd. Have entered into a multiyear patent
cross-licensing agreement. According to the agreement, Casio's customers will
be provided with patent coverage for their use of Linux in certain Casio
devices. Horacio Gutierrez, corporate vice president and deputy general counsel
of Intellectual Property Group at Microsoft Corporation (NASDAQ:MSFT), said
that, Microsoft Corporation (NASDAQ:MSFT) is pleased to reach an agreement and
to see continued recognition of the value of our patent portfolio, particularly
as it relates to operating systems". Casio utilizes a wide variety of
Microsoft Corporation (NASDAQ:MSFT) software for its products, including its
industrial handheld terminals and business information systems. Microsoft Corp.
(NASDAQ:MSFT) stocks were at 26.98 at the end of the last days trading. Theres
been a 11.2% change in the stock price over the past 3 months. Microsoft Corp.
(NASDAQ:MSFT) Analyst Advice Consensus Opinion: Moderate Buy Mean
recommendation: 1.72 (1=Strong Buy, 5=Strong Sell) 3 Months Ago: 1.84 Zacks
Rank: 28 out of 91 in the industry
Will the Fed Channel Chubby Checker?
Can the Federal Reserve save the economy and the stock market by doing the
twist? Mondays early rally for the Dow showed hope still is bubbling among some
investors, even if it might not quite spring eternal. (The bounce largely faded
by the close.) Today, though, the nations central bank will announce the results
of its two-day policy meeting in Washington and the hopers are looking for
Chairman Ben Bernanke to spin a dusty vinyl platter from the Federal Reserves
oldies collection. Back in the early 1960s, in an effort to stimulate a sluggish
economy, the Fed working hand-in-glove with the Kennedy administrations
Treasury Department instituted Operation Twist. This maneuver called for the
central bank to buy long-term Treasury bonds and simultaneously sell government
paper with shorter maturities. The goal: Drive down long-term borrowing costs
for homebuyers and businesses. Lets assume the Fed decides to twist the yield
curve again. Will Chubby Checkers old tune get the U.S. economy jiving again and
help us steer clear of a double-dip recession? Maybe, in the same sense that
each of Bernankes two previous quantitative-easing programs gave business
activity a brief, artificial boost. But lets face it. By almost any measure
(except corporate profits), the economic recovery since 2009 has been one of the
weakest on record. While businesses have done a fantastic job of adapting to
survive this adverse climate, the employment outlook continues to be dismal. As
long as that remains true, stocks will be on shaky ground. Dazzling rallies will
give way to sudden, shocking plunges (like that of early August). The current
run-up, dating from the Aug. 8 closing low at 1,119 on the S&P 500, has reached
a tender stage. Twice in recent sessions (Friday and again Monday), the S&P
banged into overhead resistance at 1,220. This is worrisome, because in late
August and early September, the S&P was able to climb 10 points higher (to
1,230) before hitting a short-term ceiling. The Fed will need to pull a
blue-ribbon bunny out of the hat today. Otherwise, well probably head back down
for a test of the August index lows during the first half of October.
twist? Mondays early rally for the Dow showed hope still is bubbling among some
investors, even if it might not quite spring eternal. (The bounce largely faded
by the close.) Today, though, the nations central bank will announce the results
of its two-day policy meeting in Washington and the hopers are looking for
Chairman Ben Bernanke to spin a dusty vinyl platter from the Federal Reserves
oldies collection. Back in the early 1960s, in an effort to stimulate a sluggish
economy, the Fed working hand-in-glove with the Kennedy administrations
Treasury Department instituted Operation Twist. This maneuver called for the
central bank to buy long-term Treasury bonds and simultaneously sell government
paper with shorter maturities. The goal: Drive down long-term borrowing costs
for homebuyers and businesses. Lets assume the Fed decides to twist the yield
curve again. Will Chubby Checkers old tune get the U.S. economy jiving again and
help us steer clear of a double-dip recession? Maybe, in the same sense that
each of Bernankes two previous quantitative-easing programs gave business
activity a brief, artificial boost. But lets face it. By almost any measure
(except corporate profits), the economic recovery since 2009 has been one of the
weakest on record. While businesses have done a fantastic job of adapting to
survive this adverse climate, the employment outlook continues to be dismal. As
long as that remains true, stocks will be on shaky ground. Dazzling rallies will
give way to sudden, shocking plunges (like that of early August). The current
run-up, dating from the Aug. 8 closing low at 1,119 on the S&P 500, has reached
a tender stage. Twice in recent sessions (Friday and again Monday), the S&P
banged into overhead resistance at 1,220. This is worrisome, because in late
August and early September, the S&P was able to climb 10 points higher (to
1,230) before hitting a short-term ceiling. The Fed will need to pull a
blue-ribbon bunny out of the hat today. Otherwise, well probably head back down
for a test of the August index lows during the first half of October.
Will the Fed Channel Chubby Checker?
Can the Federal Reserve save the economy and the stock market by doing the
twist? Mondays early rally for the Dow showed hope still is bubbling among some
investors, even if it might not quite spring eternal. (The bounce largely faded
by the close.) Today, though, the nations central bank will announce the results
of its two-day policy meeting in Washington and the hopers are looking for
Chairman Ben Bernanke to spin a dusty vinyl platter from the Federal Reserves
oldies collection. Back in the early 1960s, in an effort to stimulate a sluggish
economy, the Fed working hand-in-glove with the Kennedy administrations
Treasury Department instituted Operation Twist. This maneuver called for the
central bank to buy long-term Treasury bonds and simultaneously sell government
paper with shorter maturities. The goal: Drive down long-term borrowing costs
for homebuyers and businesses. Lets assume the Fed decides to twist the yield
curve again. Will Chubby Checkers old tune get the U.S. economy jiving again and
help us steer clear of a double-dip recession? Maybe, in the same sense that
each of Bernankes two previous quantitative-easing programs gave business
activity a brief, artificial boost. But lets face it. By almost any measure
(except corporate profits), the economic recovery since 2009 has been one of the
weakest on record. While businesses have done a fantastic job of adapting to
survive this adverse climate, the employment outlook continues to be dismal. As
long as that remains true, stocks will be on shaky ground. Dazzling rallies will
give way to sudden, shocking plunges (like that of early August). The current
run-up, dating from the Aug. 8 closing low at 1,119 on the S&P 500, has reached
a tender stage. Twice in recent sessions (Friday and again Monday), the S&P
banged into overhead resistance at 1,220. This is worrisome, because in late
August and early September, the S&P was able to climb 10 points higher (to
1,230) before hitting a short-term ceiling. The Fed will need to pull a
blue-ribbon bunny out of the hat today. Otherwise, well probably head back down
for a test of the August index lows during the first half of October.
twist? Mondays early rally for the Dow showed hope still is bubbling among some
investors, even if it might not quite spring eternal. (The bounce largely faded
by the close.) Today, though, the nations central bank will announce the results
of its two-day policy meeting in Washington and the hopers are looking for
Chairman Ben Bernanke to spin a dusty vinyl platter from the Federal Reserves
oldies collection. Back in the early 1960s, in an effort to stimulate a sluggish
economy, the Fed working hand-in-glove with the Kennedy administrations
Treasury Department instituted Operation Twist. This maneuver called for the
central bank to buy long-term Treasury bonds and simultaneously sell government
paper with shorter maturities. The goal: Drive down long-term borrowing costs
for homebuyers and businesses. Lets assume the Fed decides to twist the yield
curve again. Will Chubby Checkers old tune get the U.S. economy jiving again and
help us steer clear of a double-dip recession? Maybe, in the same sense that
each of Bernankes two previous quantitative-easing programs gave business
activity a brief, artificial boost. But lets face it. By almost any measure
(except corporate profits), the economic recovery since 2009 has been one of the
weakest on record. While businesses have done a fantastic job of adapting to
survive this adverse climate, the employment outlook continues to be dismal. As
long as that remains true, stocks will be on shaky ground. Dazzling rallies will
give way to sudden, shocking plunges (like that of early August). The current
run-up, dating from the Aug. 8 closing low at 1,119 on the S&P 500, has reached
a tender stage. Twice in recent sessions (Friday and again Monday), the S&P
banged into overhead resistance at 1,220. This is worrisome, because in late
August and early September, the S&P was able to climb 10 points higher (to
1,230) before hitting a short-term ceiling. The Fed will need to pull a
blue-ribbon bunny out of the hat today. Otherwise, well probably head back down
for a test of the August index lows during the first half of October.
Gold Turns Lower, Dollar Climbs After Fed Meeting
Gold turned lower and the U.S. dollar rallied after the Federal Reserve
announced plans to extend the average maturity of its holdings of U.S.
Treasuries, also known as Operation Twist. Gold futures per the December 2011
contract slid from as high as $1,818 to as low as $1,782 following the FOMC
announcement, and remained lower by $17.80, or 1.0%, at $1,791.30 per ounce as
of 2:59pm ET. Gold equities relinquished their gains alongside the yellow metal,
with the Market Vectors Gold Miners ETF (GDX) unchanged at $65.63 per share.
Silver pared its gains considerably this afternoon, as it retreated from an
intra-day high of $40.77 to trade higher by just 0.1% at $40.19 per ounce. The
U.S. Dollar Index, a trade-weighted measure of the greenback versus several of
the worlds other leading currencies, climbed from negative territory on the day
near 76.80 to as high as 77.33.
announced plans to extend the average maturity of its holdings of U.S.
Treasuries, also known as Operation Twist. Gold futures per the December 2011
contract slid from as high as $1,818 to as low as $1,782 following the FOMC
announcement, and remained lower by $17.80, or 1.0%, at $1,791.30 per ounce as
of 2:59pm ET. Gold equities relinquished their gains alongside the yellow metal,
with the Market Vectors Gold Miners ETF (GDX) unchanged at $65.63 per share.
Silver pared its gains considerably this afternoon, as it retreated from an
intra-day high of $40.77 to trade higher by just 0.1% at $40.19 per ounce. The
U.S. Dollar Index, a trade-weighted measure of the greenback versus several of
the worlds other leading currencies, climbed from negative territory on the day
near 76.80 to as high as 77.33.
Will the Fed Channel Chubby Checker?
Can the Federal Reserve save the economy and the stock market by doing the
twist? Mondays early rally for the Dow showed hope still is bubbling among some
investors, even if it might not quite spring eternal. (The bounce largely faded
by the close.) Today, though, the nations central bank will announce the results
of its two-day policy meeting in Washington and the hopers are looking for
Chairman Ben Bernanke to spin a dusty vinyl platter from the Federal Reserves
oldies collection. Back in the early 1960s, in an effort to stimulate a sluggish
economy, the Fed working hand-in-glove with the Kennedy administrations
Treasury Department instituted Operation Twist. This maneuver called for the
central bank to buy long-term Treasury bonds and simultaneously sell government
paper with shorter maturities. The goal: Drive down long-term borrowing costs
for homebuyers and businesses. Lets assume the Fed decides to twist the yield
curve again. Will Chubby Checkers old tune get the U.S. economy jiving again and
help us steer clear of a double-dip recession? Maybe, in the same sense that
each of Bernankes two previous quantitative-easing programs gave business
activity a brief, artificial boost. But lets face it. By almost any measure
(except corporate profits), the economic recovery since 2009 has been one of the
weakest on record. While businesses have done a fantastic job of adapting to
survive this adverse climate, the employment outlook continues to be dismal. As
long as that remains true, stocks will be on shaky ground. Dazzling rallies will
give way to sudden, shocking plunges (like that of early August). The current
run-up, dating from the Aug. 8 closing low at 1,119 on the S&P 500, has reached
a tender stage. Twice in recent sessions (Friday and again Monday), the S&P
banged into overhead resistance at 1,220. This is worrisome, because in late
August and early September, the S&P was able to climb 10 points higher (to
1,230) before hitting a short-term ceiling. The Fed will need to pull a
blue-ribbon bunny out of the hat today. Otherwise, well probably head back down
for a test of the August index lows during the first half of October.
twist? Mondays early rally for the Dow showed hope still is bubbling among some
investors, even if it might not quite spring eternal. (The bounce largely faded
by the close.) Today, though, the nations central bank will announce the results
of its two-day policy meeting in Washington and the hopers are looking for
Chairman Ben Bernanke to spin a dusty vinyl platter from the Federal Reserves
oldies collection. Back in the early 1960s, in an effort to stimulate a sluggish
economy, the Fed working hand-in-glove with the Kennedy administrations
Treasury Department instituted Operation Twist. This maneuver called for the
central bank to buy long-term Treasury bonds and simultaneously sell government
paper with shorter maturities. The goal: Drive down long-term borrowing costs
for homebuyers and businesses. Lets assume the Fed decides to twist the yield
curve again. Will Chubby Checkers old tune get the U.S. economy jiving again and
help us steer clear of a double-dip recession? Maybe, in the same sense that
each of Bernankes two previous quantitative-easing programs gave business
activity a brief, artificial boost. But lets face it. By almost any measure
(except corporate profits), the economic recovery since 2009 has been one of the
weakest on record. While businesses have done a fantastic job of adapting to
survive this adverse climate, the employment outlook continues to be dismal. As
long as that remains true, stocks will be on shaky ground. Dazzling rallies will
give way to sudden, shocking plunges (like that of early August). The current
run-up, dating from the Aug. 8 closing low at 1,119 on the S&P 500, has reached
a tender stage. Twice in recent sessions (Friday and again Monday), the S&P
banged into overhead resistance at 1,220. This is worrisome, because in late
August and early September, the S&P was able to climb 10 points higher (to
1,230) before hitting a short-term ceiling. The Fed will need to pull a
blue-ribbon bunny out of the hat today. Otherwise, well probably head back down
for a test of the August index lows during the first half of October.
Gold Turns Lower, Dollar Climbs After Fed Meeting
Gold turned lower and the U.S. dollar rallied after the Federal Reserve
announced plans to extend the average maturity of its holdings of U.S.
Treasuries, also known as Operation Twist. Gold futures per the December 2011
contract slid from as high as $1,818 to as low as $1,782 following the FOMC
announcement, and remained lower by $17.80, or 1.0%, at $1,791.30 per ounce as
of 2:59pm ET. Gold equities relinquished their gains alongside the yellow metal,
with the Market Vectors Gold Miners ETF (GDX) unchanged at $65.63 per share.
Silver pared its gains considerably this afternoon, as it retreated from an
intra-day high of $40.77 to trade higher by just 0.1% at $40.19 per ounce. The
U.S. Dollar Index, a trade-weighted measure of the greenback versus several of
the worlds other leading currencies, climbed from negative territory on the day
near 76.80 to as high as 77.33.
announced plans to extend the average maturity of its holdings of U.S.
Treasuries, also known as Operation Twist. Gold futures per the December 2011
contract slid from as high as $1,818 to as low as $1,782 following the FOMC
announcement, and remained lower by $17.80, or 1.0%, at $1,791.30 per ounce as
of 2:59pm ET. Gold equities relinquished their gains alongside the yellow metal,
with the Market Vectors Gold Miners ETF (GDX) unchanged at $65.63 per share.
Silver pared its gains considerably this afternoon, as it retreated from an
intra-day high of $40.77 to trade higher by just 0.1% at $40.19 per ounce. The
U.S. Dollar Index, a trade-weighted measure of the greenback versus several of
the worlds other leading currencies, climbed from negative territory on the day
near 76.80 to as high as 77.33.
Google Inc. (NASDAQ:GOOG) Opens Social Network
XCSFDHG46767FHJHJF
tdp2664 E money daily Google Inc. ( NASDAQ :GOOG) has opened its Plus social network to everyone. Google Inc. ( NASDAQ :GOOG) Opens Social Network The search engine major Google Inc. ( NASDAQ :GOOG) announced that it has opened its social network site Google Plus to everyone. The company has been testing the site for 12 weeks with limited membership, and now everyone can sign up for the site. Until now, the company allowed people to join the site only through invitation. Google Inc. (NASDAQ:GOOG) also added new features like 'Hangouts on Air' which allows users to broadcast their videos online. The users can also search posts on the site using the newly added search capability. Google Inc. (NASDAQ:GOOG) shares were at 546.63 at the end of the last day’s trading. There’s been a 12.8% movement in the stock price over the past 3 months. Google Inc. (NASDAQ:GOOG) Analyst Advice Consensus Opinion: Moderate Buy Mean recommendation: 1.21 (1=Strong Buy, 5=Strong Sell) 3 Months Ago: 1.26 Zack’s Rank: 13 out of 31 in the industry
Gold Stocks M&A Rising, “Good News for All Gold and Silver Explorers”
GOLD STOCKS NEWS Gold stocks continued their outperformance of the gold price
on Wednesday, as the Market Vectors Gold Miners ETF (GDX) advanced $0.63, or
1.0%, to $66.26 per share in mid-day trading.
on Wednesday, as the Market Vectors Gold Miners ETF (GDX) advanced $0.63, or
1.0%, to $66.26 per share in mid-day trading.
U.S. Existing Home Sales Inclined in August 2011
XCSFDHG46767FHJHJF
DG365FD46564GFH654FU898 The US existing homes sales rate rose in August 2011 by 7.7%; this news comes despite the ongoing tight credit problems in the US and the slowdown in housing starts fell in August. According to the recent report of the Realtors’ organization, the annual rate of US existing home sales inclined in August compared with July’s annual rate. The seasonally adjusted annual rate reached 5.03 million home sales in August compared with an annual rate of 4.67 million home sales in July 2011, a 7.7% increase (M-2-M), and 18.6% above the 4.24 million annual rate of home sales in August 2010. This news is following yesterday’s report of a moderate slowdown in the housing starts during August compared with July’s rate. This news might positively affect trading including the trade in the US stock markets as they have opened trade with mixed trends with the S&P500 index slightly falling by 0.02%, the Dow rising by 0.08% and the NASDAQ inclining by 0.56%. Current gold price, short term futures (October 2011 delivery) is traded at $1,798.1 per t oz. an $11.1 decrease as of 14:39*. Euros to US dollar exchange rate is currently traded down at 1.3677 a 0.1865% decrease as
Gold Price per ounce Todays Silver price per ounce; Spot gold per gram, spot silver prices today Mid-Day
The dollar gained versus the euro last session but gold and silver prices still
finished on positive ground last trading session. Price per ounce rates for
December delivery gold and silver contracts closed out green as investors were
feeling more negative pressure stemming from the debt crisis in the eurozone.
Stock futures were posting green in the U.S. this morning but indicators
revealed that European stocks were trending on the negative side of breakeven
this morning. Spot gold price per gram and spot silver price per ounce continued
to trend in the green at this point. As the trading session reached the halfway
point today, the primary U.S. stock composites were mixed. The Dow Jones was
trending in the red. Contract gold and silver prices were posting mixed results
at this point as well. Electronic price for contract gold price per ounce was
red by .22 percent at 1805.20. Electronic price for December delivery silver was
green by .84 percent at 40.48 per troy ounce. Spot gold and spot silver were
moving in divergent directions at this point as well. Spot gold price per gram
was red by .01 at 58.08 and spot silver price per ounce was green by .38 at
40.47. Camillo Zucari
finished on positive ground last trading session. Price per ounce rates for
December delivery gold and silver contracts closed out green as investors were
feeling more negative pressure stemming from the debt crisis in the eurozone.
Stock futures were posting green in the U.S. this morning but indicators
revealed that European stocks were trending on the negative side of breakeven
this morning. Spot gold price per gram and spot silver price per ounce continued
to trend in the green at this point. As the trading session reached the halfway
point today, the primary U.S. stock composites were mixed. The Dow Jones was
trending in the red. Contract gold and silver prices were posting mixed results
at this point as well. Electronic price for contract gold price per ounce was
red by .22 percent at 1805.20. Electronic price for December delivery silver was
green by .84 percent at 40.48 per troy ounce. Spot gold and spot silver were
moving in divergent directions at this point as well. Spot gold price per gram
was red by .01 at 58.08 and spot silver price per ounce was green by .38 at
40.47. Camillo Zucari
Skies Blacken for Coal Stocks
Coal stocks plunged on Wednesday, as investors reacted to the news that both
Alpha Natural Resources (NYSE: ANR ) and Walter Energy (NYSE: WLT ) cut their
output estimates for 2011. Even worse, Walter said third-quarter earnings would
be well below Wall Street's current expectations. While both companies cited
specific production problems, Alpha also included this key phrase – "reduced
metallurgical export shipments to Asia due to unexpectedly curtailed customer
activity levels" – as one of the reasons for its shortfall. China, of
course, has been one of most important drivers of demand for U.S. coal
companies. These latest announcements are just another piece of bad news in a
summer/autumn period that has seen harsh declines in coal stocks. Fears about
slowing global growth have weighed disproportionately on the sector – which is
dependent on the fortunes of both the steel-making and power industries – and
it now it faces the added challenge of further estimate reductions and likely
analyst downgrades. Below are the returns of selected coal names from their
highs of early April through early Wednesday morning: Yanzhou Coal YZC -38.8%
Peabody Energy BTU -43.4% Consol Energy CNX -28.8% Alpha Natural ANR -64.4%
Walter Energy WLT -52.8% Arch Coal ACI -53.8% Patriot Coal PCX -63.7% Some brave
investors may be sniffing around this sector looking for a buying opportunity
here. However, even with the stocks so far off their highs and valuations having
come down so far in recent months, coal shares are in the same boat as most
cylicals at this stage: too low to short, but still too dangerous to buy. First,
like just about every other cyclical right now, the near-term fortunes of coal
stocks remains firmly rooted in the macro trade. And until the fears about the
global economy subside, there is little chance coal shares will be able to
sustain an extended move higher. Any purchase should therefore be viewed as a
short-term trade at this point: buy shares, get your 5%, and get out before the
next wave of bad news hits. Another challenge for coal is the perilous technical
picture. Using the Market Vectors – Coal ETF (NYSE: KOL ) as a proxy, the
sector is just a hair above its 52-week low (set in September, 2010) and is now
trading below its low point of the August selloff. Some individual stocks,
including Walter, Alpha Natural, and James River Coal (NASDAQ: JRCC ) are
already at their 52-week lows. In contrast, the S&P 500 stands about 8.7% above
its August nadir. A look at the KOL chart shows the next support at $30, which
leaves another 14% of potential downside from here. Clearly, coal stocks have
seen little benefit from the rising market, which leaves it extremely vulnerable
if the broader indices begin to weaken once again. The fundamental picture is no
longer particularly compelling, either. Deutsche Bank recently came out with a
report calling for coal output to rise only 2% in 2012. In addition, the U.S.
Energy Information Administration (EIA) released a report earlier this month
that said the following: EIA expects that coal consumption for electricity
generation will decline by 21 million short tons (MMst) (2.1 percent) in 2011,
as total electricity generation rises by 0.4 percent and generation from natural
gas increases by almost 2 percent. EIA forecasts that coal production will fall
by 2.2 percent in 2011 despite a significant increase in coal exports… EIA
expects coal production will remain flat in 2012. Forecast U.S. coal exports
fall back to about 87 MMst in 2012 as supply from other major coal-exporting
countries recovers from disruptions. In total, this is hardly the backdrop for a
screaming buy. As a result, the best strategy now appears to be to wait it out
and let the clouds dissipate. A potential trading opportunity exists in the form
of the upcoming earnings season, when a sell-the-rumor / buy-the-news trade
could work once coal companies begin to report. When that time comes, focus on
companies with good fundamentals – Deutsche cites Arch Coal (NYSE: ACI ) and
Patriot Coal (NYSE: PCX ) in its report – and those with exposure to the
stronger Asian market, such as Yanzhou Coal (NYSE: YZC ). Walter Energy itself,
which was recently rumored to be a buyout candidate, represents a potential
lottery ticket for stout-hearted traders. In the meantime, the story is the
same: as long as macroeconomic issues are the main factor moving stock prices,
be safe and stick with the winners. And right now, coal stocks simply don't
fit the bill.
Alpha Natural Resources (NYSE: ANR ) and Walter Energy (NYSE: WLT ) cut their
output estimates for 2011. Even worse, Walter said third-quarter earnings would
be well below Wall Street's current expectations. While both companies cited
specific production problems, Alpha also included this key phrase – "reduced
metallurgical export shipments to Asia due to unexpectedly curtailed customer
activity levels" – as one of the reasons for its shortfall. China, of
course, has been one of most important drivers of demand for U.S. coal
companies. These latest announcements are just another piece of bad news in a
summer/autumn period that has seen harsh declines in coal stocks. Fears about
slowing global growth have weighed disproportionately on the sector – which is
dependent on the fortunes of both the steel-making and power industries – and
it now it faces the added challenge of further estimate reductions and likely
analyst downgrades. Below are the returns of selected coal names from their
highs of early April through early Wednesday morning: Yanzhou Coal YZC -38.8%
Peabody Energy BTU -43.4% Consol Energy CNX -28.8% Alpha Natural ANR -64.4%
Walter Energy WLT -52.8% Arch Coal ACI -53.8% Patriot Coal PCX -63.7% Some brave
investors may be sniffing around this sector looking for a buying opportunity
here. However, even with the stocks so far off their highs and valuations having
come down so far in recent months, coal shares are in the same boat as most
cylicals at this stage: too low to short, but still too dangerous to buy. First,
like just about every other cyclical right now, the near-term fortunes of coal
stocks remains firmly rooted in the macro trade. And until the fears about the
global economy subside, there is little chance coal shares will be able to
sustain an extended move higher. Any purchase should therefore be viewed as a
short-term trade at this point: buy shares, get your 5%, and get out before the
next wave of bad news hits. Another challenge for coal is the perilous technical
picture. Using the Market Vectors – Coal ETF (NYSE: KOL ) as a proxy, the
sector is just a hair above its 52-week low (set in September, 2010) and is now
trading below its low point of the August selloff. Some individual stocks,
including Walter, Alpha Natural, and James River Coal (NASDAQ: JRCC ) are
already at their 52-week lows. In contrast, the S&P 500 stands about 8.7% above
its August nadir. A look at the KOL chart shows the next support at $30, which
leaves another 14% of potential downside from here. Clearly, coal stocks have
seen little benefit from the rising market, which leaves it extremely vulnerable
if the broader indices begin to weaken once again. The fundamental picture is no
longer particularly compelling, either. Deutsche Bank recently came out with a
report calling for coal output to rise only 2% in 2012. In addition, the U.S.
Energy Information Administration (EIA) released a report earlier this month
that said the following: EIA expects that coal consumption for electricity
generation will decline by 21 million short tons (MMst) (2.1 percent) in 2011,
as total electricity generation rises by 0.4 percent and generation from natural
gas increases by almost 2 percent. EIA forecasts that coal production will fall
by 2.2 percent in 2011 despite a significant increase in coal exports… EIA
expects coal production will remain flat in 2012. Forecast U.S. coal exports
fall back to about 87 MMst in 2012 as supply from other major coal-exporting
countries recovers from disruptions. In total, this is hardly the backdrop for a
screaming buy. As a result, the best strategy now appears to be to wait it out
and let the clouds dissipate. A potential trading opportunity exists in the form
of the upcoming earnings season, when a sell-the-rumor / buy-the-news trade
could work once coal companies begin to report. When that time comes, focus on
companies with good fundamentals – Deutsche cites Arch Coal (NYSE: ACI ) and
Patriot Coal (NYSE: PCX ) in its report – and those with exposure to the
stronger Asian market, such as Yanzhou Coal (NYSE: YZC ). Walter Energy itself,
which was recently rumored to be a buyout candidate, represents a potential
lottery ticket for stout-hearted traders. In the meantime, the story is the
same: as long as macroeconomic issues are the main factor moving stock prices,
be safe and stick with the winners. And right now, coal stocks simply don't
fit the bill.
AutoZone Shares — 3 Pros, 3 Cons
XCSFDHG46767FHJHJF
tdp2664 InvestorPlace For the past decade, AutoZone (NYSE: AZO ) has been a nice ride for investors. During this time, the average annual return was an amazing 22.42%. So it should be no surprise that AutoZone's latest quarterly report showed lots of strength. Earnings come to $301.5 million, or $7.18 per share — up from last year's $268.9 million, or $5.66 per share. Revenues increased by 8.1% to $2.46 billion, with domestic same-store sales up 4.5%. However, the stock price did not move much on the news. No doubt, Wall Street anticipated the good performance. So looking ahead, will AutoZone be able to crank out more lucrative returns? To see, here's a look at the pros and cons. Pros Scale. AutoZone is the largest U.S. retailer and distributor of replacement parts and accessories, with more than 4,600 stores. Because of this, the company can realize substantial efficiencies in procurement and inventory management. Such things are important as the industry is fairly commoditized. Room to grow. The “Do-It-Yourself” auto aftermarket segment is about $44 billion per year. Of this, AutoZone has only about 15% of the share. In fact, the company has only 1.8% of the total market for the "Do-It-For-Me" category. The market has a size of roughly $57 billion. Margins. AutoZone has its own brands, which include Valucraft, AutoZone, Duralast and Duralast Gold . These have allowed for better differentiation. What's more, the brands provide higher profit levels. For example, in the latest quarter, the company increased its gross margins from 50.5% to 51.2%. Cons Competition. Of course, it is intense. AutoZone must deal with large operators like O’Reilly Automotive ( NASDAQ : ORLY ), Pep Boys (NYSE: PBY ) and Advance Auto Parts (NYSE: AAP ). It even faces competition from big-box retailers such as Wal-Mart (NYSE: WMT ). Macro changes. Historically, a key driver of revenue growth has been the overall number of miles driven in the U.S. However, during the past couple years, things have been mostly flat. One factor is the recession. There also is pressure from high oil prices, which have resulted in less income for discretionary spending. Internet. True, AutoZone has a decent website. But it still looks more like an Internet 1.0 approach. To remain competitive, the company really does need to get more aggressive with its digital strategy. The Verdict AutoZone is an incredibly well-run organization. Besides its sophisticated logistical platform, the company also has invested heavily in employee training. This has proven quite helpful in creating repeat business. At the same time, AutoZone should see long-term opportunities in foreign markets. Already, the company is making inroads in Mexico, which now has 279 stores. AutoZone also has plans to expand into Brazil. Yet the key factor for AutoZone is its measured growth. Consider that the company has posted 20%-plus increases in earnings per share for the past 11 months. It's this kind of track record that drives stock prices. And it looks like AutoZone has the platform to keep up the momentum. So all in all, the pros outweigh the cons for the stock. Tom Taulli is the author of "All About Short Selling" and "All About Commodities." You can also find him at Twitter account @ttaulli. He does not own a position in any of the stocks named here.
Todays Dow Jones Industrial Average DJIA IndexDJX DJI, Nasdaq, S&P 500 Stock Market Investing News Mid Day
Stock index trends in the U.S. were up and down yesterday and ultimately ended
the session mixed. Investors received a mixed bag of economic news pertaining to
the housing sector and worries pertaining to the eurozone debt crisis also
played a factor in the volatility last session. Prior to opening bell this
morning, stock futures were posting in the green and stocks were positioned to
open the third trading session of the week on higher ground. The futures for the
Dow Jones Industrial Average, as well as the Nasdaq and the S&P 500 were all
positive this morning. World market indices continue to apply negative pressure.
The DAX and the FTSE 100 moved in negative territory during the initial half of
their respective sessions today. Investors on Wall Street today were primed and
focused to hear news stemming from the Federal Reserves two day policy meeting.
Action to support our economy and interest rate modifications are two topics
that are highly anticipated. As the trading session reached the halfway point
today in the U.S., the primary stock indices were mixed. The Dow Jones
Industrial Average was negative by .27 percent at 11,377.93. The Nasdaq was
negative by .37 percent at 2,600. The S&P 500 was negative by .52 percent at
1,196. Stock index trends are basically stagnating ahead of the Fed
announcement. Investors appear unwilling at this point to make any big moves
until further details regarding economic support and interest rates are released
this afternoon. Frank Matto
the session mixed. Investors received a mixed bag of economic news pertaining to
the housing sector and worries pertaining to the eurozone debt crisis also
played a factor in the volatility last session. Prior to opening bell this
morning, stock futures were posting in the green and stocks were positioned to
open the third trading session of the week on higher ground. The futures for the
Dow Jones Industrial Average, as well as the Nasdaq and the S&P 500 were all
positive this morning. World market indices continue to apply negative pressure.
The DAX and the FTSE 100 moved in negative territory during the initial half of
their respective sessions today. Investors on Wall Street today were primed and
focused to hear news stemming from the Federal Reserves two day policy meeting.
Action to support our economy and interest rate modifications are two topics
that are highly anticipated. As the trading session reached the halfway point
today in the U.S., the primary stock indices were mixed. The Dow Jones
Industrial Average was negative by .27 percent at 11,377.93. The Nasdaq was
negative by .37 percent at 2,600. The S&P 500 was negative by .52 percent at
1,196. Stock index trends are basically stagnating ahead of the Fed
announcement. Investors appear unwilling at this point to make any big moves
until further details regarding economic support and interest rates are released
this afternoon. Frank Matto
“A Remarkable Level of Skittishness in the Gold Timing Community”
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DG365FD46564GFH654FU898 With the gold price tumbling from a new all-time record high of $1,922.20 to near $1,800 per ounce in recent weeks, sentiment toward the yellow metal has fallen in-kind. Over the past ten days, the Hulbert Gold Newsletter Sentiment Index (HGNSI) – which measures market timers’ recommended exposure to the yellow metal – dropped 20 percentage points and sits far below levels associated with intermediate-term tops in the price of gold . Mark Hulbert, founder of the HGNSI, addressed the growing chorus of calls that the gold price has reached a top in light of the recent drop in sentiment.
Raytheon (NYSE:RTN) Installs Armed Services Terminal
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tdp2664 E money daily Raytheon (NYSE:RTN) has installed first AEHF satellite communication terminals to US armed services. Raytheon (NYSE:RTN) Installs Armed Services Terminal Raytheon (NYSE:RTN), the US aerospace company, said that it has successfully installed the first Advanced Extremely High Frequency (AEHF) Secure Mobile Anti-jam Reliable Tactile Terminal (SMART-T) to extend data rate of the existing SMART-T systems of the US Armed services. Raytheon (NYSE:RTN) Network Centric System's Integrated Communications Systems vice president Scott Whatmough said, "Raytheon (NYSE:RTN)'s latest SMART-T solution delivers the next generation of protected communications that's compatible with both EHF and AEHF satellites. EHF SMART-T provides the end-user with more mission flexibility and increased capacity to transmit voice, data and video, providing increased situational awareness." Raytheon (NYSE:RTN) shares were at 41.35 at the end of the last day’s trading. There’s been a -14.6% change in the stock price over the past 3 months. Raytheon (NYSE:RTN) Analyst Advice Consensus Opinion: Hold Mean recommendation: 2.17 (1=Strong Buy, 5=Strong Sell) 3 Months Ago: 2.35 Zack’s Rank: 1 out of 5 in the industry
Nike — How to Play Thursday’s Earnings Report
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tdp2664 InvestorPlace Sports apparel company Nike (NYSE: NKE ) reports earnings for the quarter ending Aug. 31, 2011, on Thursday after the market closes. Retail stocks are rebounding nicely in September, but weak guidance from Lululemon ( NASDAQ : LULU ) might foreshadow trouble for Nike. The market clearly is uncomfortable at current levels. One week we go up, only to retest the lows the next week. The bears are expecting a significant slowdown in the economy. The bulls believe we have seen the worst of it. Who will be right? With third-quarter earnings season set to begin in early October, we will soon find out. In the interim, a handful of companies — Nike among them — are reporting results that will give us clues as to the future direction of the market. Nike has exceeded Wall Street estimates in three of the past four quarters: When Nike reported results for the quarter ending May 31, shares soared . The glowing report did include a warning that higher manufacturing costs would eat into future profits into 2012. With the warning, analysts reduced guidance for the current quarter. The average Wall Street estimate is for Nike to make $1.21 per share. That number is eight cents lower than the $1.29 per share estimate 90 days ago. For the full year ending May 31, 2012, the company is expected to make $4.83 per share. In the last fiscal year, Nike made a profit of $4.17 per share. At current prices, NKE shares trade for 22 times trailing earnings and 19 times forward earnings. The expected year-over-year profit growth rate is 16%. Given the strong operating performance during the past year, it should be no surprise that shares of Nike have gained 16%: Nike's earnings report comes at a time when the market is in rally mode. During the past week, stocks have gained impressively, with the only blip coming on Monday. Shares of Nike have participated in the rally, with shares spiking to above $90 per share. Those gains have Nike at a premium valuation relative to its expected growth rate. Using Lululemon's reduced guidance as a guide, it would be surprising to see Nike be anything but cautious in the current report. The company previously suggested profit margins would be hit by higher manufacturing costs. Will the strong brand equity in the Swoosh be enough to propel shares higher from here? At the time Lululemon reported its results on Sept. 8, shares traded for 50 times current-year estimates, with expected profit growth of 27%. The reduction in earnings pierced the bubble somewhat, but shares now trade well above pre-earnings levels thanks to a rally in stocks. Nike trades for a much more reasonable valuation. Current quarter estimates have been sliced, setting the table for an earnings beat on Thursday. A particularly strong report could impress investors to the point of pushing shares up 5% or more. Other companies reporting results this week include Finish Line ( NASDAQ : FINL ) and KB Home (NYSE: KBH ).
U.S. Existing Home Sales Inclined in August 2011
The US existing homes sales rate rose in August 2011 by 7.7%; this news comes
despite the ongoing tight credit problems in the US and the slowdown in housing
starts fell in August. According to the recent report of the Realtors
organization, the annual rate of US existing home sales inclined in August
compared with Julys annual rate. The seasonally adjusted annual rate reached
5.03 million home sales in August compared with an annual rate of 4.67 million
home sales in July 2011, a 7.7% increase (M-2-M), and 18.6% above the 4.24
million annual rate of home sales in August 2010. This news is following
yesterdays report of a moderate slowdown in the housing starts during August
compared with Julys rate. This news might positively affect trading including
the trade in the US stock markets as they have opened trade with mixed trends
with the S&P500 index slightly falling by 0.02%, the Dow rising by 0.08% and the
NASDAQ inclining by 0.56%. Current gold price, short term futures (October 2011
delivery) is traded at $1,798.1 per t oz. an $11.1 decrease as of 14:39*. Euros
to US dollar exchange rate is currently traded down at 1.3677 a 0.1865% decrease
as
despite the ongoing tight credit problems in the US and the slowdown in housing
starts fell in August. According to the recent report of the Realtors
organization, the annual rate of US existing home sales inclined in August
compared with Julys annual rate. The seasonally adjusted annual rate reached
5.03 million home sales in August compared with an annual rate of 4.67 million
home sales in July 2011, a 7.7% increase (M-2-M), and 18.6% above the 4.24
million annual rate of home sales in August 2010. This news is following
yesterdays report of a moderate slowdown in the housing starts during August
compared with Julys rate. This news might positively affect trading including
the trade in the US stock markets as they have opened trade with mixed trends
with the S&P500 index slightly falling by 0.02%, the Dow rising by 0.08% and the
NASDAQ inclining by 0.56%. Current gold price, short term futures (October 2011
delivery) is traded at $1,798.1 per t oz. an $11.1 decrease as of 14:39*. Euros
to US dollar exchange rate is currently traded down at 1.3677 a 0.1865% decrease
as
Google Inc. (NASDAQ:GOOG) Opens Social Network
Google Inc. (NASDAQ:GOOG) has opened its Plus social network to everyone.
Google Inc. (NASDAQ:GOOG) Opens Social Network The search engine major Google
Inc. (NASDAQ:GOOG) announced that it has opened its social network site Google
Plus to everyone. The company has been testing the site for 12 weeks with
limited membership, and now everyone can sign up for the site. Until now, the
company allowed people to join the site only through invitation. Google Inc.
(NASDAQ:GOOG) also added new features like 'Hangouts on Air' which allows
users to broadcast their videos online. The users can also search posts on the
site using the newly added search capability. Google Inc. (NASDAQ:GOOG) shares
were at 546.63 at the end of the last days trading. Theres been a 12.8% movement
in the stock price over the past 3 months. Google Inc. (NASDAQ:GOOG) Analyst
Advice Consensus Opinion: Moderate Buy Mean recommendation: 1.21 (1=Strong Buy,
5=Strong Sell) 3 Months Ago: 1.26 Zacks Rank: 13 out of 31 in the industry
Google Inc. (NASDAQ:GOOG) Opens Social Network The search engine major Google
Inc. (NASDAQ:GOOG) announced that it has opened its social network site Google
Plus to everyone. The company has been testing the site for 12 weeks with
limited membership, and now everyone can sign up for the site. Until now, the
company allowed people to join the site only through invitation. Google Inc.
(NASDAQ:GOOG) also added new features like 'Hangouts on Air' which allows
users to broadcast their videos online. The users can also search posts on the
site using the newly added search capability. Google Inc. (NASDAQ:GOOG) shares
were at 546.63 at the end of the last days trading. Theres been a 12.8% movement
in the stock price over the past 3 months. Google Inc. (NASDAQ:GOOG) Analyst
Advice Consensus Opinion: Moderate Buy Mean recommendation: 1.21 (1=Strong Buy,
5=Strong Sell) 3 Months Ago: 1.26 Zacks Rank: 13 out of 31 in the industry
Johnson & Johnson (NYSE:JNJ) Wins Corporation Award
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tdp2664 E money daily Johnson & Johnson (NYSE:JNJ) has won USHCC's 2011 Corporation of the Year award. Johnson & Johnson (NYSE:JNJ) Wins Corporation Award The pharmaceutical company Johnson & Johnson (NYSE:JNJ) has announced that it has received the 2011 Corporation of the Year award from United States Hispanic Chamber of Commerce (USHCC). The company vice president Dominic Caruso and chief procurement officer Hans Melotte accepted the award at Miami Beach Convention Center. Caruso said, "This is quite an honor for our company. It validates the work that we do to ensure that minority-owned and women-owned businesses are fairly represented as valuable suppliers. By doing businesses with diverse suppliers, we directly contribute to the creation of jobs in our local communities beyond. We are strengthening ties to all those who benefit from our products and services – the one billion lives we touch every day". Johnson & Johnson (NYSE:JNJ) stocks are currently standing at 64.22. Price History Last Price: 64.22 52 Week Low / High: 57.5 / 68.05 50 Day Moving Average: 64.71 6 Month Price Change %: 9.0% 12 Month Price Change %: 4.2%
Gold Price Awaits Fed Meeting, With a “Twist”?
GOLD PRICE NEWS – The gold price held near $1,800 per ounce Wednesday morning
as the markets await the outcome from todays Fed meeting.
as the markets await the outcome from todays Fed meeting.
Nike — How to Play Thursday’s Earnings Report
Sports apparel company Nike (NYSE: NKE ) reports earnings for the quarter
ending Aug. 31, 2011, on Thursday after the market closes. Retail stocks are
rebounding nicely in September, but weak guidance from Lululemon (NASDAQ: LULU )
might foreshadow trouble for Nike. The market clearly is uncomfortable at
current levels. One week we go up, only to retest the lows the next week. The
bears are expecting a significant slowdown in the economy. The bulls believe we
have seen the worst of it. Who will be right? With third-quarter earnings season
set to begin in early October, we will soon find out. In the interim, a handful
of companies Nike among them are reporting results that will give us clues as
to the future direction of the market. Nike has exceeded Wall Street estimates
in three of the past four quarters: When Nike reported results for the quarter
ending May 31, shares soared . The glowing report did include a warning that
higher manufacturing costs would eat into future profits into 2012. With the
warning, analysts reduced guidance for the current quarter. The average Wall
Street estimate is for Nike to make $1.21 per share. That number is eight cents
lower than the $1.29 per share estimate 90 days ago. For the full year ending
May 31, 2012, the company is expected to make $4.83 per share. In the last
fiscal year, Nike made a profit of $4.17 per share. At current prices, NKE
shares trade for 22 times trailing earnings and 19 times forward earnings. The
expected year-over-year profit growth rate is 16%. Given the strong operating
performance during the past year, it should be no surprise that shares of Nike
have gained 16%: Nike's earnings report comes at a time when the market is in
rally mode. During the past week, stocks have gained impressively, with the only
blip coming on Monday. Shares of Nike have participated in the rally, with
shares spiking to above $90 per share. Those gains have Nike at a premium
valuation relative to its expected growth rate. Using Lululemon's reduced
guidance as a guide, it would be surprising to see Nike be anything but cautious
in the current report. The company previously suggested profit margins would be
hit by higher manufacturing costs. Will the strong brand equity in the Swoosh be
enough to propel shares higher from here? At the time Lululemon reported its
results on Sept. 8, shares traded for 50 times current-year estimates, with
expected profit growth of 27%. The reduction in earnings pierced the bubble
somewhat, but shares now trade well above pre-earnings levels thanks to a rally
in stocks. Nike trades for a much more reasonable valuation. Current quarter
estimates have been sliced, setting the table for an earnings beat on Thursday.
A particularly strong report could impress investors to the point of pushing
shares up 5% or more. Other companies reporting results this week include Finish
Line (NASDAQ: FINL ) and KB Home (NYSE: KBH ).
ending Aug. 31, 2011, on Thursday after the market closes. Retail stocks are
rebounding nicely in September, but weak guidance from Lululemon (NASDAQ: LULU )
might foreshadow trouble for Nike. The market clearly is uncomfortable at
current levels. One week we go up, only to retest the lows the next week. The
bears are expecting a significant slowdown in the economy. The bulls believe we
have seen the worst of it. Who will be right? With third-quarter earnings season
set to begin in early October, we will soon find out. In the interim, a handful
of companies Nike among them are reporting results that will give us clues as
to the future direction of the market. Nike has exceeded Wall Street estimates
in three of the past four quarters: When Nike reported results for the quarter
ending May 31, shares soared . The glowing report did include a warning that
higher manufacturing costs would eat into future profits into 2012. With the
warning, analysts reduced guidance for the current quarter. The average Wall
Street estimate is for Nike to make $1.21 per share. That number is eight cents
lower than the $1.29 per share estimate 90 days ago. For the full year ending
May 31, 2012, the company is expected to make $4.83 per share. In the last
fiscal year, Nike made a profit of $4.17 per share. At current prices, NKE
shares trade for 22 times trailing earnings and 19 times forward earnings. The
expected year-over-year profit growth rate is 16%. Given the strong operating
performance during the past year, it should be no surprise that shares of Nike
have gained 16%: Nike's earnings report comes at a time when the market is in
rally mode. During the past week, stocks have gained impressively, with the only
blip coming on Monday. Shares of Nike have participated in the rally, with
shares spiking to above $90 per share. Those gains have Nike at a premium
valuation relative to its expected growth rate. Using Lululemon's reduced
guidance as a guide, it would be surprising to see Nike be anything but cautious
in the current report. The company previously suggested profit margins would be
hit by higher manufacturing costs. Will the strong brand equity in the Swoosh be
enough to propel shares higher from here? At the time Lululemon reported its
results on Sept. 8, shares traded for 50 times current-year estimates, with
expected profit growth of 27%. The reduction in earnings pierced the bubble
somewhat, but shares now trade well above pre-earnings levels thanks to a rally
in stocks. Nike trades for a much more reasonable valuation. Current quarter
estimates have been sliced, setting the table for an earnings beat on Thursday.
A particularly strong report could impress investors to the point of pushing
shares up 5% or more. Other companies reporting results this week include Finish
Line (NASDAQ: FINL ) and KB Home (NYSE: KBH ).
Finish Line — How to Play Thursday’s Earnings
Shoe retailer Finish Line (NASDAQ: FINL ) reports earnings for the quarter
ending Aug. 31, 2011, on Thursday after the market closes. The report will go a
long way to confirm what has been a nice rally in the stock since the middle of
August. We are moving from speculation of a double-dip recession to the reality
of earnings. So far the numbers have held up well. In the retail space, many
companies have been beaten Wall Street estimates. Another name in the shoe
space, DSW (NYSE: DSW ) recently reported strong results that included raised
guidance for the remainder of the year. That news should portend good results
for Finish Line. On the flip side, the commerce department reported sluggish
back-to-school sales that might have a negative impact on Finish Line. The winds
are blowing crossways be careful out there. Finish Line has matched Wall Street
estimates in the past two quarters: While that performance is to be commended,
there does not appear to be upside acceleration of profit growth. Simply
matching the number might not cut it for investors when the company reports
results for the current period. The average Wall Street estimate for the Aug. 31
quarter is 38 cents per share. That is a penny higher than where estimates stood
90 days ago. For the full year ending Feb. 28, 2012 estimates have been creeping
higher. Currently, Wall Street is looking for a profit of $1.56 per share.
Ninety days ago the annual estimate was at $1.52 per share. In the following
year, the profit estimate is $1.70 per share or 9% higher. At current prices,
Finish Line trades for 12.5 times current fiscal-year estimated earnings. During
the past 12 months, Finish Line has gained a very impressive 23%: On Tuesday,
shares of Finish Line plunged more than 6% on no particular news. Shares opened
slightly lower but drifted down throughout the day. When a stock moves like this
in front of an earnings report, investors should be cautious. Does someone know
something? is what I would ask. Operating performance at the company has been
nothing to write home about. Shares up 23% over the past 12 months would imply a
stronger result. Wall Street appears to be unmoved. Analyst estimates are only
slightly higher over the last three months. With share price gains including
Tuesday's decline, Finish Line trades for a premium valuation as compared to
expected growth. A very strong report is needed to support that price.
Back-to-school sales look to be unimpressive. We all keep waiting for companies
to show cracks with earnings or guidance. Could this be the quarter we see
reductions in future expectations? I don't like the valuation heading into
this report. For that reason and that reason alone I would sit on the sideline
with this one.
ending Aug. 31, 2011, on Thursday after the market closes. The report will go a
long way to confirm what has been a nice rally in the stock since the middle of
August. We are moving from speculation of a double-dip recession to the reality
of earnings. So far the numbers have held up well. In the retail space, many
companies have been beaten Wall Street estimates. Another name in the shoe
space, DSW (NYSE: DSW ) recently reported strong results that included raised
guidance for the remainder of the year. That news should portend good results
for Finish Line. On the flip side, the commerce department reported sluggish
back-to-school sales that might have a negative impact on Finish Line. The winds
are blowing crossways be careful out there. Finish Line has matched Wall Street
estimates in the past two quarters: While that performance is to be commended,
there does not appear to be upside acceleration of profit growth. Simply
matching the number might not cut it for investors when the company reports
results for the current period. The average Wall Street estimate for the Aug. 31
quarter is 38 cents per share. That is a penny higher than where estimates stood
90 days ago. For the full year ending Feb. 28, 2012 estimates have been creeping
higher. Currently, Wall Street is looking for a profit of $1.56 per share.
Ninety days ago the annual estimate was at $1.52 per share. In the following
year, the profit estimate is $1.70 per share or 9% higher. At current prices,
Finish Line trades for 12.5 times current fiscal-year estimated earnings. During
the past 12 months, Finish Line has gained a very impressive 23%: On Tuesday,
shares of Finish Line plunged more than 6% on no particular news. Shares opened
slightly lower but drifted down throughout the day. When a stock moves like this
in front of an earnings report, investors should be cautious. Does someone know
something? is what I would ask. Operating performance at the company has been
nothing to write home about. Shares up 23% over the past 12 months would imply a
stronger result. Wall Street appears to be unmoved. Analyst estimates are only
slightly higher over the last three months. With share price gains including
Tuesday's decline, Finish Line trades for a premium valuation as compared to
expected growth. A very strong report is needed to support that price.
Back-to-school sales look to be unimpressive. We all keep waiting for companies
to show cracks with earnings or guidance. Could this be the quarter we see
reductions in future expectations? I don't like the valuation heading into
this report. For that reason and that reason alone I would sit on the sideline
with this one.
3 Stocks Offering Value to Customers
The market delivered five straight days of gains last week as easing of fears
in Europe helped investors brush aside concerns about the economy on the home
front. Don't count your winnings too quickly. On Monday, stocks sold off
significantly. A late-day rally cut the losses in the session by more than half.
Once again, worries about default in Europe swayed investor sentiment. When will
the madness end? I'm half-tempted to say buy your stocks then disappear for a
few years. When you return, all of these issues will have sorted out and you
should be solidly ahead of the game. Unfortunately, telling an investor to
disappear sounds all too much like the failed buy and hold mentality we have
seen disappoint all too often during the last decade or more. And professional
investors are flummoxed by the current environment. So what strategy should
investors follow? My suggestion would be to find business models that work not
in the future, but today. There can be little patience for pie-in-the-sky
speculation. You need businesses that will make money now and tomorrow no matter
what happens in the economy. The fight for the consumer dollar in a down economy
is quite simple: Have the lowest price in the market, and you likely will win
the fight. It really is that simple. From an investing standpoint, here are
three companies winning the low-price battle to consider for your portfolio:
Teva Pharmaceutical Anyone listening to the battle in Washington has heard about
the high cost of health care, including drugs. It would be a pretty safe
assumption that a drug company selling medicine at the lowest price would do
well in this economy. In the pharmaceutical space, that means focusing on
companies selling generic drugs. My pick would be Teva Pharmaceutical (NASDAQ:
TEVA ) It is far too expensive and risky to buy a research-and-development drug
company. If you haven't noticed, drug pipelines have been shrinking. While
there is great excitement and potential in the space, there has been a dearth of
blockbuster drugs coming to market. At the same time, older drugs are losing
patent protection. Those expirations build the pipeline of a company like Teva.
The best part is Teva doesn't have to invest in expensive research and
development to sell new product. Investors in Teva don't share the same
enthusiasm, but that is what creates opportunity today. The stock is down 28% so
far this year. Wall Street expects the company to make $5.05 per share in the
current year. In the following year, profits are anticipated to jump 13% to
$5.72 per share. At current prices, Teva trades for only 7.5 times current-year
estimated earnings. That is relatively cheap for this low-cost drug seller. In
addition to that low valuation, the company pays a nice dividend. I would buy
the stock at these levels.
in Europe helped investors brush aside concerns about the economy on the home
front. Don't count your winnings too quickly. On Monday, stocks sold off
significantly. A late-day rally cut the losses in the session by more than half.
Once again, worries about default in Europe swayed investor sentiment. When will
the madness end? I'm half-tempted to say buy your stocks then disappear for a
few years. When you return, all of these issues will have sorted out and you
should be solidly ahead of the game. Unfortunately, telling an investor to
disappear sounds all too much like the failed buy and hold mentality we have
seen disappoint all too often during the last decade or more. And professional
investors are flummoxed by the current environment. So what strategy should
investors follow? My suggestion would be to find business models that work not
in the future, but today. There can be little patience for pie-in-the-sky
speculation. You need businesses that will make money now and tomorrow no matter
what happens in the economy. The fight for the consumer dollar in a down economy
is quite simple: Have the lowest price in the market, and you likely will win
the fight. It really is that simple. From an investing standpoint, here are
three companies winning the low-price battle to consider for your portfolio:
Teva Pharmaceutical Anyone listening to the battle in Washington has heard about
the high cost of health care, including drugs. It would be a pretty safe
assumption that a drug company selling medicine at the lowest price would do
well in this economy. In the pharmaceutical space, that means focusing on
companies selling generic drugs. My pick would be Teva Pharmaceutical (NASDAQ:
TEVA ) It is far too expensive and risky to buy a research-and-development drug
company. If you haven't noticed, drug pipelines have been shrinking. While
there is great excitement and potential in the space, there has been a dearth of
blockbuster drugs coming to market. At the same time, older drugs are losing
patent protection. Those expirations build the pipeline of a company like Teva.
The best part is Teva doesn't have to invest in expensive research and
development to sell new product. Investors in Teva don't share the same
enthusiasm, but that is what creates opportunity today. The stock is down 28% so
far this year. Wall Street expects the company to make $5.05 per share in the
current year. In the following year, profits are anticipated to jump 13% to
$5.72 per share. At current prices, Teva trades for only 7.5 times current-year
estimated earnings. That is relatively cheap for this low-cost drug seller. In
addition to that low valuation, the company pays a nice dividend. I would buy
the stock at these levels.
Gold & Silver Prices – Daily Outlook September 21
Gold and silver prices continue to zigzag as they have bounced back yesterday
from Mondays falls. During September gold price changed direction eleven times
(on a daily scale) out of the past 13 business days. The FOMC meeting started
yesterday and will conclude today. The speculation around what will be next step
of the Fed will end today. How will the Feds decision on issuing a stimulus plan
affect the financial markets and gold and silver prices? Today, the Canadian
Core CPI will also be published and the U.S. existing home sales report for
August. Here is a market outlook of precious metals prices for today, September
21st: Gold and silver prices –September Gold and silver prices changed
direction again and increased yesterday: Gold price rose on Tuesday by 1.70% to
$1,809; silver price also inclined by 1.79% to $39.87. During September, gold
price declined by 1.2% and silver price fell by 4.6%. The chart below presents
the price changes of gold and silver throughout September (normalized gold and
silver prices (August 31st 2011=100)). The ratio between gold and silver prices
reached on Tuesday, September 20th 45.38. During September, gold price has
slightly outperformed silver price as the ratio
from Mondays falls. During September gold price changed direction eleven times
(on a daily scale) out of the past 13 business days. The FOMC meeting started
yesterday and will conclude today. The speculation around what will be next step
of the Fed will end today. How will the Feds decision on issuing a stimulus plan
affect the financial markets and gold and silver prices? Today, the Canadian
Core CPI will also be published and the U.S. existing home sales report for
August. Here is a market outlook of precious metals prices for today, September
21st: Gold and silver prices –September Gold and silver prices changed
direction again and increased yesterday: Gold price rose on Tuesday by 1.70% to
$1,809; silver price also inclined by 1.79% to $39.87. During September, gold
price declined by 1.2% and silver price fell by 4.6%. The chart below presents
the price changes of gold and silver throughout September (normalized gold and
silver prices (August 31st 2011=100)). The ratio between gold and silver prices
reached on Tuesday, September 20th 45.38. During September, gold price has
slightly outperformed silver price as the ratio
Apple is Everyone’s Favorite Blue-Chip Stock — But Which Companies Come Next?
You just can't go wrong with Apple (NASDAQ: AAPL ) stock these days. Just
look at these recent returns: 50% gains for AAPL stock in the past year 120%
gains for AAPL in the past two years 190% gains for AAPL in the past three years
455% gains for AAPL in the past five years 4,600% gains for AAPL in the past 10
years Given the dominant nature of the gadget giant, the $12 billion in cash on
its balance sheet and its track record of innovation, it's easy to see why a
great many investors agree that Apple simply is the best stock out there. But if
you want diversification, you can't put every cent in Apple alone. Where else,
then, should you stash your cash? Even though there aren't a lot of other
growth options out there and certainly no large-caps that have the explosive
potential of Apple there are a handful of other blue-chip stocks that are
incredibly attractive buys. If you already own Apple and are looking for other
investments to fill out your portfolio, consider these picks as the second-best
stocks to buy right now behind the Silicon Valley superpower: McDonald's
McDonald's (NYSE: MCD ) isn't quite as dramatic as Apple when it comes to
stock performance. The company has "only" doubled since 2007 and "only"
tripled since 2005 compared with 330% gains since 2007 and 900% gains since
2005 for Apple. But you have to admit, those gains still are incredibly
impressive especially for a mammoth blue chip like McDonald's that is
dominant worldwide. Also worth consideration is the fact that, since 2007,
McDonald's has paid dividends totaling $9.26 per share. Since McDonald's
stock was trading around $45 four years ago, that means on top of doubling your
money via the share appreciation, you would have gotten back about 20% of your
initial investment via dividends alone. Or if you reinvested those funds, you
really could have supercharged your returns even more. Looking forward,
McDonald's shows no signs of slowing down. It has surpassed analysts'
expectations in
look at these recent returns: 50% gains for AAPL stock in the past year 120%
gains for AAPL in the past two years 190% gains for AAPL in the past three years
455% gains for AAPL in the past five years 4,600% gains for AAPL in the past 10
years Given the dominant nature of the gadget giant, the $12 billion in cash on
its balance sheet and its track record of innovation, it's easy to see why a
great many investors agree that Apple simply is the best stock out there. But if
you want diversification, you can't put every cent in Apple alone. Where else,
then, should you stash your cash? Even though there aren't a lot of other
growth options out there and certainly no large-caps that have the explosive
potential of Apple there are a handful of other blue-chip stocks that are
incredibly attractive buys. If you already own Apple and are looking for other
investments to fill out your portfolio, consider these picks as the second-best
stocks to buy right now behind the Silicon Valley superpower: McDonald's
McDonald's (NYSE: MCD ) isn't quite as dramatic as Apple when it comes to
stock performance. The company has "only" doubled since 2007 and "only"
tripled since 2005 compared with 330% gains since 2007 and 900% gains since
2005 for Apple. But you have to admit, those gains still are incredibly
impressive especially for a mammoth blue chip like McDonald's that is
dominant worldwide. Also worth consideration is the fact that, since 2007,
McDonald's has paid dividends totaling $9.26 per share. Since McDonald's
stock was trading around $45 four years ago, that means on top of doubling your
money via the share appreciation, you would have gotten back about 20% of your
initial investment via dividends alone. Or if you reinvested those funds, you
really could have supercharged your returns even more. Looking forward,
McDonald's shows no signs of slowing down. It has surpassed analysts'
expectations in
What’s the Market’s Next Move?
Yesterday, stocks fell for the second day, as the focus remained on the
economic and financial problems of Europe. Stocks opened higher, despite a
downgrade of Italy's debt, and held the gains until an hour before the close
when "the troika" (European Central Bank, the European Commission and the
International Monetary Fund) failed to reach an agreement on a bailout plan for
Greece. Volume was light with just 925 million shares traded on the NYSE with
decliners exceeding advancers on the Big Board by 1.5-to-1. The Nasdaq was the
only major index to close decisively lower, as it gave back recent gains losing
0.86% with decliners ahead by 2.6-to-1. Even though the Nasdaq's pullback was
anticipated (see Monday's Daily Market Outlook ), selling in technology stocks
was heavier than usual. Netflix (NASDAQ: NFLX ), off $13.72 on high volume,
accounted for some of the sector's woes. But throughout the session, there was
talk of a generally expected failure of the sector to live up to expectations
and fear that Oracle (NASDAQ: ORCL ), which was scheduled to report earnings
after the close, would miss analysts' estimates. It turned out that ORCL beat
estimates and upped estimates for the current quarter, and the stock rose 3% in
after-hours trading. But the Nasdaq failed to hold above its 50-day moving
average, turned away from the high of Aug. 31, and picked up a stochastic sell
signal three very negative responses to important chart features all in one
day. The market has become extremely technical meaning that traders are focused
on every technical feature of the charts. Yesterday was a fine example of an
unusually heightened awareness of technical analysis as both The Wall Street
Journal and CNBC commented on the failure of the S&P 500 to close above 1,220,
its 50-day moving average. The S&P 500 closed lower by just 2 points. But
turning away from a key resistance line like the 50-day moving average signals
that there are probably not enough committed buyers to push the S&P 500 into the
major zone of resistance, which is just above the neckline at 1,262.
economic and financial problems of Europe. Stocks opened higher, despite a
downgrade of Italy's debt, and held the gains until an hour before the close
when "the troika" (European Central Bank, the European Commission and the
International Monetary Fund) failed to reach an agreement on a bailout plan for
Greece. Volume was light with just 925 million shares traded on the NYSE with
decliners exceeding advancers on the Big Board by 1.5-to-1. The Nasdaq was the
only major index to close decisively lower, as it gave back recent gains losing
0.86% with decliners ahead by 2.6-to-1. Even though the Nasdaq's pullback was
anticipated (see Monday's Daily Market Outlook ), selling in technology stocks
was heavier than usual. Netflix (NASDAQ: NFLX ), off $13.72 on high volume,
accounted for some of the sector's woes. But throughout the session, there was
talk of a generally expected failure of the sector to live up to expectations
and fear that Oracle (NASDAQ: ORCL ), which was scheduled to report earnings
after the close, would miss analysts' estimates. It turned out that ORCL beat
estimates and upped estimates for the current quarter, and the stock rose 3% in
after-hours trading. But the Nasdaq failed to hold above its 50-day moving
average, turned away from the high of Aug. 31, and picked up a stochastic sell
signal three very negative responses to important chart features all in one
day. The market has become extremely technical meaning that traders are focused
on every technical feature of the charts. Yesterday was a fine example of an
unusually heightened awareness of technical analysis as both The Wall Street
Journal and CNBC commented on the failure of the S&P 500 to close above 1,220,
its 50-day moving average. The S&P 500 closed lower by just 2 points. But
turning away from a key resistance line like the 50-day moving average signals
that there are probably not enough committed buyers to push the S&P 500 into the
major zone of resistance, which is just above the neckline at 1,262.
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