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Stocks move higher following jobs, housing reports (AP)
2 Sep 2010 at 4:32pm

In this Sept. 1, 2010 photo, traders and specialists work the trading floor of the New York Stock Exchange, in New York.  (AP Photo/David Karp)AP - Stocks rose Thursday, extending their gains from the day before, after reports on housing, manufacturing and jobs all indicated that the economy continues to grow.




Stocks rise on economic hopes ahead of payrolls (Reuters)
2 Sep 2010 at 3:45pm

Traders work on the floor of the New York Stock Exchange, August 31, 2010. REUTERS/Brendan McDermidReuters - Stocks rose on low volume on Thursday as data showed improvement in housing and the job market a day ahead of the critical monthly payrolls figures.




Summary Box: Stocks extend gains on economic news (AP)
2 Sep 2010 at 3:32pm
AP - ANOTHER LIFT: Stocks gained again on Thursday, though not as much as the day before, on the latest hopeful indicators on the economy.

How the major stock indexes fared Thursday (AP)
2 Sep 2010 at 3:23pm
AP - Stocks rose Thursday, extending their gains from the day before, after reports on housing, manufacturing and jobs all indicated that the economy continues to grow. Trading was somewhat muted ahead of the government's closely watched monthly report on employment due out Friday.

"Quote stuffing" a focus in flash crash probe (Reuters)
2 Sep 2010 at 2:23pm

Traders at the New York Stock Exchange on August 31. Asian and European stocks were rising, lifted by bargain-hunting and upbeat data, as dealers set aside Wall Street's worst August performance in nine years amid stubborn US recovery doubts.(AFP/Getty Images/Spencer Platt)Reuters - U.S. regulators probing the May flash crash are focusing on a trading practice known as "quote stuffing", in which large numbers of rapid-fire orders to buy or sell stocks are placed and canceled almost immediately.




US Def Sec: Afghans should lead corruption fight (AP)
2 Sep 2010 at 1:53pm

U.S. Defense Secretary Robert Gates, right, is greeted by top NATO commander Gen. David Petraeus as he arrives in Kabul, Afghanistan on Thursday, Sept. 2, 2010.  (AP Photo/Jim Watson, Pool)AP - U.S. Defense Secretary Robert Gates said Thursday that while the fight against corruption must be led by Afghans, the U.S. is working on new ways to prevent millions of American dollars flowing into the nation from underwriting bribery and graft.




A look at economic developments around the globe (AP)
2 Sep 2010 at 1:17pm
AP - A look at economic developments and activity in major stock markets around the world Thursday:

US data shores up stocks ahead of payrolls (AP)
2 Sep 2010 at 9:49am

Traders and specialists work the trading floor of the New York Stock Exchange Wednesday, Sept. 1, 2010. in New York.  (AP Photo/David Karp)AP - Global stock markets pushed modestly higher Thursday after an upbeat U.S. housing survey as investors await payrolls figures that could well set the tone for the rest of the month.




Report: SEC Investigating canceled trades (AP)
2 Sep 2010 at 7:25am
AP - The Securities and Exchange Commission is looking into certain types of stock trade orders that could be distorting share prices and trading volume, according to The Wall Street Journal.

European stocks drop before ECB rate call (AFP)
2 Sep 2010 at 6:02am

File photo of a trader at the Frankfurt stock exchange. European stock markets slid on Thursday as investors took profits from recent gains amid caution before the latest interest rate decision from the European Central Bank.(AFP/DDP/File/Martin Oeser)AFP - European stock markets slid on Thursday as investors took profits from recent gains amid caution before the latest interest rate decision from the European Central Bank.




Ex-hedge fund manager charged with insider trading (Reuters)
1 Sep 2010 at 12:15pm
Reuters - A former hedge fund manager has been accused by a U.S. regulator of illegal insider trading in MedImmune Inc securities prior to the acquisition of the pharmaceutical company by Britain's AstraZeneca Plc.

Some BofA shareholders can apply to tap $150M fund (AP)
1 Sep 2010 at 11:31am

Mickey Levy, chief economist for the Bank of America, leaves for the midmorning break of the Saturday session of the annual Federal Reserve conference, in Jackson, Wyo., Saturday, Aug. 28, 2010.  (AP Photo/Reed Saxon)AP - Investors who lost money when Bank of America Corp. bought Merrill Lynch without disclosing Merrill's problems can start applying to tap a $150 million compensation fund.




Equities make bright start to September (AFP)
1 Sep 2010 at 6:16am

A woman walks past an electronic share prices board in Tokyo. Asian and European stocks were on the rise, lifted by bargain-hunting and upbeat data, as dealers set aside Wall Street's worst August performance in nine years amid stubborn US recovery doubts.(AFP/Yoshikazu Tsuno)AFP - Asian and European stocks rose on Wednesday, lifted by bargain-hunting and upbeat data, as dealers set aside Wall Street's worst August performance in nine years amid stubborn US recovery doubts.




Strong Asian data boosts world stocks (Reuters)
1 Sep 2010 at 3:46am

People are reflected in a stock index board outside a brokerage in Tokyo August 31, 2010. REUTERS/Kim Kyung-HoonReuters - World stocks kicked off September on a stronger note on Wednesday as data showed a manufacturing rebound in China and stronger-than-expected growth in Australia, while the yen held near recent 15-year peaks against the dollar.




SEC says it lacked authority to charge Moody's (AP)
31 Aug 2010 at 6:23pm
AP - The Securities and Exchange Commission has declined to seek fraud charges against Moody's Investors Services over its ratings of risky investments that led to the financial crisis.

BP Says Limits on Drilling Imperil Oil Spill Payouts - New York Times
2 Sep 2010 at 8:23pm

Reuters

BP Says Limits on Drilling Imperil Oil Spill Payouts
New York Times
BP is warning Congress that if lawmakers pass legislation that bars the company from getting new offshore drilling permits, it may not have the money to pay for all the damages caused by its oil spill in the Gulf ...
Shallow-water platform fire raises wider questions on oil safetyWashington Post
Rigs Drill for Oil; Platforms Pump ItWall Street Journal
US offshore oil fire may delay lift of drill banReuters
Los Angeles Times -USA Today -Houston Chronicle
all 4,494 news articles »

Burger King Agrees to $4 Billion Private Equity Offer - New York Times
2 Sep 2010 at 8:42pm

Reuters

Burger King Agrees to $4 Billion Private Equity Offer
New York Times
Burger King agreed on Thursday to sell itself to an investment firm with roots in Brazil in a deal valued at $4 billion, including the assumption of debt. The deal is the largest leveraged buyout of a fast-food chain ever, ...
Burger King Bounds Higher On TakeoverForbes
Fitch cuts rating for Burger King on buyout dealBusinessWeek
3G Capital's $3 billion deal to buy Burger KingSan Francisco Chronicle
Bloomberg -Wall Street Journal -The Associated Press
all 1,480 news articles »

Hewlett-Packard wins bidding war for 3Par - Los Angeles Times
2 Sep 2010 at 8:04pm

Moneycontrol.com

Hewlett-Packard wins bidding war for 3Par
Los Angeles Times
Computer maker Dell Inc. withdrew Thursday from the three-week bidding war over tiny data storage company 3Par Inc., which quickly accepted the latest offer at $33 a share from Dell rival Hewlett-Packard Co. ...
Dell's enterprise challenge remains after 3ParThe Associated Press
Kumar Says HP's Offer for 3Par `Extremely Expensive': VideoBloomberg
Windfall for 3PAR's insiders, early investorsReuters India
TheStreet.com -PC World -CNBC
all 1,774 news articles »

Retail sales, home contracts rise modestly - Washington Post
2 Sep 2010 at 8:46pm

KVAL

Retail sales, home contracts rise modestly
Washington Post
Americans have not lost their will to spend, according to a modest and surprising bump in retail sales last month and the number of contracts signed by home buyers in July. Retailers reported that sales at stores open more than a year ...
Index of pending home sales rises 5.2%Los Angeles Times
Pending home sales riseSan Francisco Chronicle
Economic Data Damp Down Fears of New RecessionABC News
Forbes -The Associated Press -The Atlantic
all 345 news articles »

Regulators fell short in identifying and addressing problems, Bernanke says -...
2 Sep 2010 at 8:53pm

The Hindu

Regulators fell short in identifying and addressing problems, Bernanke says
Washington Post
Regulators fell short in using their powers "forcefully or effectively" to stop risky practices by banks and were slow to identify and address abuses in the US financial system that led to global economic crisis, Federal Reserve ...
Bernanke EmpoweredBloomberg
Ben Bernanke: new regulations may prompt ' too big to fail' banks to break upTelegraph.co.uk
Bernanke Defends Record on LehmanWall Street Journal
ABC News -Financial Times -Los Angeles Times
all 1,565 news articles »

White House considers pre-midterm package of business tax breaks to spur hiri...
2 Sep 2010 at 9:12pm

Washington Post

White House considers pre-midterm package of business tax breaks to spur hiring
Washington Post
These leaders have been a driving force behind the nation's economic policies since the financial crisis of 2008. By Anne E. Kornblut and Lori Montgomery With less than two months until the November elections, the White House is seriously weighing a ...
Democratic Salvage PlanWall Street Journal
More Dems buck plan to let taxes increase for richThe Associated Press
A Push on Tax Cuts?New York Times (blog)
Bloomberg -CNNMoney -CNBC
all 426 news articles »

Take-Two Impresses in Extended Trades - TheStreet.com
2 Sep 2010 at 6:26pm

VentureBeat

Take-Two Impresses in Extended Trades
TheStreet.com
NEW YORK (TheStreet) -- Trader screens plugged into Take-Two Interactive's(TTWO) ticker tomorrow will be flashing green thanks to Red Dead Redemption. The game maker was the big winner in extended trading on ...
Take-Two Posts Profit, Raises OutlookABC News
Take-Two posts 3Q profit, revenue soarsThe Associated Press
Take-Two Posts Strong 3Q Beat, Boosts ViewFOXBusiness
Forbes (blog) -Bloomberg -Los Angeles Times (blog)
all 95 news articles »

Hope for the US Housing Market: Record Low Mortgage Rates - DailyFinance
2 Sep 2010 at 7:38pm

Bakersfield Now

Hope for the US Housing Market: Record Low Mortgage Rates
DailyFinance
US mortgage rates this week fell to their lowest point in nearly four decades, giving real-estate industry watchers hope that the housing market may soon regain momentum as banks start helping more people buy or refinance homes. ...
Mortgage rates set new record lows, might hold steady next weekLos Angeles Times
Jumbo Borrowers See Better Rates, TooTheStreet.com
Mortgage rates, once again, at all time lowWLBT-TV
BusinessWeek -eCreditDaily.com -Bloomberg
all 342 news articles »

PG&E's smart meters work fine, independent study says - USA Today
2 Sep 2010 at 8:00pm

CNET

PG&E's smart meters work fine, independent study says
USA Today
Consumer allegations in California that new smart meters measuring household energy use led to unfairly high bills are unfounded and the meters work just fine, an independent research group said Thursday. ...
Report: PG&E's Smart Meters Work Great, Their Customer Service Just SucksThe San Francisco Appeal
Study faults PG&E's customer service, not SmartMetersBakersfield Californian
PUC: PG&E SmartMeters OK, but company needs better customer serviceMarin Independent-Journal
KIONrightnow.com -San Francisco Chronicle -KCRA Sacramento
all 104 news articles »

Home Prices in China to Decline Starting From September, BNP Paribas Says - B...
2 Sep 2010 at 8:34pm

IBTimes Hong Kong

Home Prices in China to Decline Starting From September, BNP Paribas Says
Bloomberg
By Bloomberg News - Fri Sep 03 01:09:25 GMT 2010 China's home prices will decline from this month as the government maintains its lending curbs and increases the supply of public housing, forcing property developers to cut prices to boost sales, ...
China's Stock Futures Rise as US Data Signal Global RecoveryBusinessWeek
China Day Ahead: Potash Approach; Newbridge Sells Ping An Insurance StakeBloomberg
HK stocks seen higher as overseas mkts extend gainsReuters
BusinessWeek -Bloomberg -Bloomberg
all 270 news articles »

Is Boone Pickens Plan a step in the right direction for energy independence?
8 Jul 2008 at 4:40pm

If you have been watching the news at all today you have probably already hard of Boone Pickens and his new plan to help our country become less dependent on foreign oil. The Texas oil tycoon is making all the rounds trying to get the word out about his new website PickensPlan.com. Earlier today Pickens was on Squawk Box touting his plan, and also had a major article in today's USA Today. boone%20pickens.jpg

The basics of the plan are that Boone Pickens believes America should utilize wind power as a major source of our electric power generation. He believes that more than 20% of our country's electric power usage could be wind generated within the next few years. Pickens is putting his money where his mouth is and building the world's largest wind farm in Texas.

So how does the wind power help our situation with gasoline prices? Pickens believes that natural gas is the cleanest form of transportation fuel available today. The problem is, our country doesn't use natural gas for transportation becaue it is being used for electric generation. Pickens believes that since these natural gas resources are cheaper (less than $1 gallon right now in some places) and are available in the United States we should use these for fuel transportation. By using our country's natural gas resources we could dramatically reduce our need for foreign oil, which in turn should drive down the price of oil substantially.



Violent swings in the market- what do they mean for the short term?
7 Jul 2008 at 4:04pm

Today was one of those days on wall street where there are violent intraday swings in both directions. The market opened strong, but by 2 pm the Dow was down more than 160 points. Between 2pm eastern and 3:45 the Dow jumped back into positive territory for the day, before sellers rushed back in and the Dow finished down by 57 points. If you just pick up the paper and see the final numbers on today's trading you'll think it was a monotonous minor selloff, but that was far from the case.question%20mark.jpg

Why do these kind of violent intraday swings happen in the market? When do these swings usually take place? How can you profit from this extreme volatility? These are the questions I will attempt to answer in this post.



What to make of the June employment report
6 Jul 2008 at 3:06pm

On Thursday the June employment report was released by the Labor Department. The news wasn't good, but it could have been worse. Employers cut 62,000 workers in the month of June and the jobless rate held steady at 5.5%. Also in the report, April and May's job losses were increased by 52,000 total. Through the first half of 2008 the U.S. economy has now lost 438,000 jobs. magnifying%20glass.jpg

Let's put the job losses into a little bit of perspective. In 2002 during the most recent economic recession job losses were averaging over 200,000 a month. What we are seeing right now is not the sign of a deep recession, but there are some signs it could be getting worse rather than better. Just this past week the jobless claims jumped to 404,000, the highest level since March. In general any number above 400,000 is considered recessionary. Any continuance of an increase in the jobless claims numbers will almost certainly show up in the next couple employment reports.



Top 5 beaten down blue-chips
2 Jul 2008 at 11:35am

As we all know, the stock market has been hit very hard in the last few weeks. There are many blue chip names that have been beaten down to levels they haven't seen in years. While it may not seem that way right now, there are going to prove to be some real deals in the long run on some companies that have proven themselves time and time again. These are five names that I believe could prove to be a value at today's price sometime in the not too distant future.

Top 5 Beaten Down Blue Chips

General Electric (NYSE:GE) There isn't one thing that stands out in my mind as a reason to buy GE except for the fact that this stock is just too cheap on a historical valuation basis. The stock trades lower today than it did 10 years ago. The dividend yield is a very impressive 4.62%. Give this company time to turn it around and rake in the yield while your waiting.Walgreen Company (NYSE:WAG) WAG isn't even my favorite name in this space, that is CVS Caremark (NYSE:CVS), but this company has proven itself numerous times. The company got slightly behind when CVS joined with Caremark, but Walgreen is getting things back together. They are cutting costs nicely and should be able to return to constant double-digit earnings growth. UnitedHealth Group (NYSE:UNH) Anything that can possibly go wrong for UNH has done so in the past couple of years. The whole managed care group has been beaten down badly in the last few months because of a major slowdown in earnings growth, but the business coca%20cola1.jpgisn't going away. Warren Buffett is still buying this name as it drops, which is a good reason to consider it.The Coca-Cola Company (NYSE:KO) This stock hasn't taken the lumps that the first three have, but it has been surprisingly weak of late. The stock yields 3% and trades just barely higher than it did 5 years ago. The weak dollar should help them benefit quite nicely.Starbucks Corporation (Nasdaq:SBUX) Starbucks was an amazing stock for years, but the tables have turned quite quickly of late. The stock is down 40% in the last year. Starbucks just today announced that it will close 600 unprofitable stores to help cut costs and get things going on the right path again. They will never be able to get back the outrageous growth rates they previously had, but this company isn't going away anytime soon.

Be smart when picking dividend yielding stocks
29 Jun 2008 at 9:51pm

In a tough market like we have right now you will hear a lot of experts say that high dividend stocks are the safest stocks to be in. This notion is true, but there is one big caveat, only if their dividend is safe. The amateur investor can login to Google Finance or Yahoo Finance and check for the highest yielding stocks and just buy the very highest, but trust me when I say it isn't that easy.newspaper.jpg

Like many other things in life, if a yield seems too high to be true, it probably is. Case in point is KeyCorp (NYSE:KEY), which on June 12th announced it would be cutting its dividend by 50% because it needed to save money and raise new equity.  Those investors who had decided to purchase KEY just before that because of its great dividend were surely disappointed. This is just one example, and it can certainly be much worse in some circumstances. When companies are having a great amount of financial difficulties it isn't unusual to see them get rid of their dividend altogether.

Currently the highest yielding stock on the S&P 500 is MBIA (NYSE:MBI). The stock is yielding 32.61% despite the fact that it is widely being rumored to be a possible bankruptcy candidate in the near future. Do you really think this is a good stock to buy based on a great dividend payout? Of course it isn't.

So what kind of dividend stock is the type you want to look for? Look for a company that is growing earnings at the same time it is growing its dividend. You don't want the dividend yield to be high because the stock has fallen to the lowest of lows, rather you want a stock that has a good solid dividend yield because the company raises its yield consistently. A good example of this is Johnson and Johnson (NYSE:JNJ). The company yields just under 3% a year, but has raised its dividend payout for an unbelievable 46 straight years! Now that is a dividend stock that an investor can count on.

Don't be lured into thinking that the highest dividend yielding stocks are the best dividend stock investments. Do your research and check out the financial standing of the company. In order to growyourfunds you can't take the easy way out!



How I spent my stimulus website gains popularity
27 Jun 2008 at 4:42pm

One of the most interesting websites I have seen that has been recently created is howispentmystimulus. The site is dedicated to collecting stories from people who have received economic stimulus checks on exactly how they used that money. How does it work? First, you simply go to the website and click on the tell your story button at the top of the site to get to the entry page. You then must upload a photo of either yourself or your purchase and then you start typing up your story in 250 characters or less. After putting your name and address information in the entry, you'll be ready to submit your entry. The entry process itself is very simple.cash.jpg

The site puts all the entries into categories so that users who browse to the site can see what categories have the most entries. Currently, travel and vacation is just edging out vehicle and gas for the top spot on the list. The debt and credit card section is fourth and the invest/save section is ranked sixth most popular. Based on my earlier post regarding what you should do with your stimulus check, you know that I believe the wisest move is to pay off all your debts and whatever is left over, invest it.



Is the Fed being too soft on inflation? Are they to blame for recent market l...
26 Jun 2008 at 9:12pm

All across the street today there was a heated discussion going on of whether the Federal Reserve is to blame for the recent market action and today's steep losses in all the major indices. Many out there were saying that by holding rates steady yesterday the Fed was abandoning its strong dollar and inflation fighting policy stance. Larry Kudlow, who has a nightly show on CNBC, made his opinion known tonight. Kudlow said that he believes today's action was certainly because of the Fed and that oil and gold prices today back that up. He is certainly not alone in his thoughts, as many on the street believe that the Fed has dropped the ball and that prices are going to get much worse in a hurry. ben%20bernanke%202.jpg

Are those who believe the Fed is being too soft on inflation and the dollar spot on, or are they off the mark? This is a very difficult question which has more than one logical answer.



Widespread pain on the street as stocks are crushed
26 Jun 2008 at 6:26pm

Things got very ugly today on the street as stocks were hit with their second largest down day this year. Good news was nowhere to be found today as oil topped $140, and Goldman downgraded General Motors and Citigroup. The Dow tanked by 358 points. The Nasdaq plunged 80 points. The broader S&P 500 fell 39 points, or 3%.bear%20growling.jpg

There was nowhere to hide in the stock market today, but the biggest sector losers were financials, technology, and capital goods.

Bank of America (NYSE:BAC) shares shed another 6.76% and hit a new low today after announcing it will layoff 7,500 employees after the Countrywide deal closes. American Express (NYSE:AXP) hit a 5 year low today, falling 5.01% on strong volume. Fannie Mae (NYSE:FNM) shares plunged by 7.15% in today's trading. NYSE Euronext (NYSE:NYX) fell 5.07% and hit a 52 week low. Principal Financial (NYSE:PFG) also hit a new low today, falling by 7.6%.

Tech stocks were hurt by investors belief that Research in Motion future forecasts cast some doubts about tech spending in the next few quarters. Baidu.com (Nasdaq:BIDU) shares lost 5.22% on average volume. Salesforce.com (NYSE:CRM), which has been one of the strongest tech stocks of late, fell by 5.12% today. Sandisk Corporation (Nasdaq:SNDK) fell 5.05% and has now lost almost 60% in the last year. MEMC Electronic Materials (NYSE:WFR) fell 5.23% as all of the solar plays weakened throughout the day.

The capital goods sector was also hit hard today. Jacobs Engineering Group (NYSE:JEC) fell 5.14% on the day as the construction services group fell across the board. Manitowoc (NYSE:MTW) plunged more than 7% on the session. Lennar Corporation (NYSE:LEN) shares plunged 8.44% during the session, but are rising afterhours as the company reported smaller than expected losses.

Notable 52 week lows

Honeywell International (NYSE:HON) Shares fell by 4.58% on the session.Las Vegas Sands (NYSE:LVS) Shares lost 5.98% and are down 53.49% in the last 6 months alone.Allegheny Technologies (NYSE:ATI) This company is in a space where most companies have done well, but they have missed out in a big way.Valero Energy (NYSE:VLO) If you want to look for the weakest large cap energy stock in the past few months, this is it. It lost another 5.69% today.

Consumer confidence expectations index hits all-time low. What's next for the...
24 Jun 2008 at 6:57pm

There are many ways to interpret consumer confidence reports and how useful they are to predict consumer spending trends, but there is no denying that today's report was shockingly weak. The Consumer Confidence Index dropped to 50.4 in June, well below expectations of a decline to 56. This is the fifth weakest level ever recorded by this index and it is the weakest since 1992.

What really stands out to me inside this report is the future Expectations index. caution%20sign.jpgThe future Expectations index hit an All-Time low, plunging to a terribly discouraging level of 41. This index tracks how consumers feel about the future of the economy. Obviously, consumers across the country are expressing their belief that the economy is going into the tank in a hurry.



The rich get richer and the poor get poorer
23 Jun 2008 at 7:50pm

It's the continuing story of the rich getting richer and the poor getting poorer on wall street. No I don't mean traders, I mean the sectors that have done well continue to do so, while those that have lagged the market are accelerating to the downside. Today the Dow fell by less than one point, while the Nasdaq was down by 20 points. The S&P 500 was almost exactly unchanged. wall%20street%20sign.jpg

It was a completely tug of war on wall street as the energy and basic material sectors pulled the market higher but the financials and the transports drug the market lower.

Take a look at the damage being done in the financial and transportation sector as far as the 52 week low list. All these names hit new 52 week lows today:

52 week lows in the financial and transportation sectors

Bank of America (NYSE:BAC) Shares fell 4.5% as the company continues to be dogged by its impending takeover of Countrywide Financial (NYSE:CFC).Wells Fargo (NYSE:WFC) Wells Fargo has actually been one of the best performing banks through this credit market meltdown, but it has been hit some of late as well. MBIA Inc. (NYSE:MBI) This stock plunged another 13.77% today and bankruptcy fears are starting to mount.Northwest Airlines (NYSE:NWA) This stock plunged 17.27% today as its CEO blamed speculators for the high price of fuel NWA is paying for. Jet Blue (Nasdaq:JBLU) JBLU shares fell 6.58% and are now trading below $4 a share.Ameriprise Financial (NYSE:AMP) Even this financial planning behemoth is feeling the pain these days. Warren Buffett got off board and the market has followed his lead.

At the same time these stocks are floundering because of economic worries, we have other companies who have no issue with where the economy is right now. The problem with that is they are basic material and energy names. This means that consumers are paying outrageous prices at the grocery and the gas tanks, but I'm sure that you already knew that unless you live under a rock.

In fact, despite the overall markets weakness of late there are a few notable new 52 week highs in this group today.

52 week highs in the energy and basic materials sectors

National Oilwell Varco (NYSE:NOV) This stock surged another 8.36% today. Can the times get any better for them?Halliburton Company (NYSE:HAL) Shares jumped 5.96% after news the company is giving up its pursuit of Expro.United States Steel (NYSE:X) This steel powerhouse has been a steady gainer in the last few days and hit a new high today.Helmerich and Payne (NYSE:HP) For a stock that went nowhere for so long this thing is on the move in the last 6 months in a huge way. The stock has gained almost 100% in 6 months time after sitting near unchanged for more than 2 years before that.Praxair (NYSE:PX) Slowly but surely this thing continues to hit new highs on strong volume.

Basically the main loser in this is the consumer. The two groups that are doing so well are only doing well because of huge gains in prices that are being passed on to consumers. It obviously also isn't in the best interest of consumers to have transports or financials doing so poorly.

When will this trend end? There is no end in sight, but things certainly will change over time. In the past as the street was the most negative on these sectors they turned it around, and it will surely happen again, but when?



Saudi Arabia boosts oil supply, but will it matter?
22 Jun 2008 at 9:01pm

Saudi Arabia announced today that it will increase production for a third-straight month in an effort to curb record oil prices. The kingdom plans to raise its production by 200,000 barrels to 9.7 million barrels next month. While this can't be taken as bad news, it seems that there are already a lot of skeptics as to whether this will actually cause crude oil prices to move lower. John Hall, of John Hall associates believes that in order for the increase to make oil prices move lower at all it would have to be at least 500,000 barrels a month.oil.jpg

Many, including myself, believe that this is nothing more than a public relations move on the Saudis part. They want to be seen as doing everything they can to drive the price of oil lower. In reality, the Saudis themselves know very well that this small increase will do virtually nothing in the whole scheme of things. The longer term problems will remain, and those who continue to think that supply is meeting demand are simply kidding themselves. The Saudis want to attribute the crude oil gains to pure speculation in the oil market because then they won't be pressured as strongly to increase production drastically.



What's the deal with Ohio and its regional banks?
19 Jun 2008 at 7:44pm

We all know that the banking sector is extremely out of favor on wall street, but what on earth is going on in Ohio? Since I reside in Columbus, Ohio I thought I would take a brief look at this amazingly unloved group.

There are four major regional banks headquarted in the Buckeye state. The biggest of them from a market cap standpoint is Fifth Third Bancorp (Nasdaq:FITB). The second largest in the group is KeyCorp (NYSE:KEY). The third largest is National City Corporation (NYSE:NCC). The smallest of the big four is fifth%20third.jpgHuntington Bancshares (Nasdaq:HBAN). 

Let's take a quick look at the performance of each of these stocks:

KeyCorp- Shares have fallen 69% in the past year and 52% in the last month alone.Fifth Third- This stock has fallen 77% in the last year and 52% in the last month.Huntington- This stock has lost 77% in the last year and 45% in the last month.National City- This stock has plunged 85% in the last year and has lost 12% in the past month.

As you can see, the pain in the Buckeye state is extremely widespread. National City has fallen the hardest and was the first to fall because of their high amounts of exposure to risky mortgages. Fifth Third and Key have both warned of extensive write downs and cut their dividend by 60% and 50% respectively. Huntington just tonight announced that it expects 2008 chargeoffs to be at the high side of current expectations.



So is it oil speculation or is it demand?
18 Jun 2008 at 7:30pm

Over the past few weeks the debate has been raging, is it speculation driving oil prices or is it pure economics 101, not enough supply to keep up with demand? There are some big names on both sides. George Soros has been public about his belief that oil speculators have driven the recent price surge and that something must be done about it. Soros believes that speculators are causing a bubble in oil that could cause a massive recession in the American and global economies. Jim Cramer, the famous host of CNBC's Mad Money, is on the other side of this argument. Jim believes that oil prices are high because demand is rampant. Cramer also says that people should get use to the high oil prices, because they are here to stay. oil%20refinery.jpg

The truth here is that both of the crowds have a sound argument. Demand form foreign nations has absolutely skyrocketed for a number of reasons, not the least of which is that many Chinese are buying cars now instead of riding bicycles. Supply also has not grown because there have been no more oil finds and OPEC is perfectly happy with high prices. On the other hand, the speculation argument is lent plenty of credence when we consistently see the massive swings in oil prices that we have recently. Oil prices gaining $11 in one day is almost unheard of, and for someone to say there is no speculation there, they are crazy.



What you should do with your tax rebate/economic stimulus check
17 Jun 2008 at 7:30pm

GrowYourFunds RSS readers know by now that the real passion of mine is the stock market, but today I wanted to step back and look at a personal finance issue. I wanted to follow up yesterday's post regarding which companies are poised to benefit from the spending of economic stimulus checks by taking a look at what you should do with your tax rebate/economic stimulus check.cash.jpg

The most obvious answer to this question is that it depends on your situation, but there are some steps you can take a look at to decide which category you might fit in.

The first thing you should do is look at any debt you may have. If you have any kind of debt you must pay it off first. Many Americans have credit card debt and they are being eaten alive by it. The average rate Americans are paying on that debt is about 13%, which means if you have $1,000 of debt you are paying $130 a year on that debt. You simply cannot afford to pay that high of an interest rate if you can avoid it at all. If you have debt then you need to pay it off before anything else, period.



5 Stocks that should benefit from economic stimulus spending
16 Jun 2008 at 7:24pm

Since the economic stimulus checks have either been received or will soon be received by almost all Americans, I wanted to take tonight to look at five stocks that should benefit quite nicely from those checks. We all know that when Americans receive a check of $600 or even $1200, many will end up putting alot of that back in the economy even if they do want to try to save some money up. What kind of places will they probably be spending it most? What stocks could receive a near-term bounce because of this bump?retail%20sales.jpg

Top 5 Stocks to Benefit from Economic Stimulus Check Spending

Best Buy (NYSE:BBY) Best Buy is the perfect kind of company to get sales increases from economic stimulus spending. When the American consumer gets a check that they weren't counting on, many like to spend it on discretionary spending items such as the newest electronics and gadgets. Best Buy releases its earnings tomorrow morning so we may see soon if they are seeing any boost. Apple (Nasdaq:AAPL) Apple really is here for many of the same reasons, but it also has the 3G iPhone working for it. The release date of July 11th is bound to have some consumers putting much of their check into a new iPhone. The recently upgraded iPods should also be selling well through the summer with this economic stimulus boost.Children's Place Retail Stores (Nasdaq:PLCE) This company seems to be in the process of a major and impressive turnaround. It makes a lot of sense that there will be some extra money spent on some children's clothing because of the stimulus checks and PLCE serves to benefit from it and its continuing turnaround. Las Vegas Sands (NYSE:LVS) In my opinion it is unfortunate that a company like Las Vegas Sands would benefit from economic stimulus checks, but I think they will. I believe consumers would do much better investing their money in a stock or a mutual fund than gambling with their stimulus check, but its bound to happen in plenty of cases. Tiffany and Company (NYSE:TIF) Fine jewelers generally receive a nice little boost at any time that discretionary spending gets a quick pop. TIF could very well see a short-term pop in sales from middle class consumers reaching up to purchase higher end products.

Wall St rises on economic hopes ahead of payrolls
2 Sep 2010 at 9:29pm
US stocks rose on low volume yesterday as data showed improvement in housing and the job market a day ahead of the critical monthly payrolls figures.

Stock markets rise on Europe's $1-trillion rescue plan
2 Sep 2010 at 9:25pm
This photo taken on Dec. 31, 2009 shows traders on the floor of the New York Stock Exchange in New York.

NZ dollar holds gains before US payrolls
2 Sep 2010 at 9:24pm
" The New Zealand dollar held on to yesterday's gains as solid U.S. data helped keep investors upbeat ahead of today's American employment data.

FOREX-Risk currencies firm on data surprises before job report
2 Sep 2010 at 9:20pm
The euro and high-yielding currencies held firm on Friday after an improvement in U.S. housing and jobless claims data bolstered investor appetite for risk ahead of key U.S. jobs data later in the day.

Nikkei crawls higher, but wary before jobs data
2 Sep 2010 at 9:20pm
Japan's Nikkei average climbed 0.7 percent on Friday as more encouraging data reassured investors about the state of the global economic recovery and sparked short-covering. But gains are likely to be capped by wariness ahead of closely-watched U.S. August non-farm payrolls data later on Friday, as well as investor concern about whether the recent ...

Stocks climb amid growth in housing, jobs
2 Sep 2010 at 9:19pm
The Dow Jones industrial average rose 50 points, having jumped 254 on Wednesday thanks to strong reports on manufacturing in the United States and China.

HK stocks seen higher as overseas mkts extend gains
2 Sep 2010 at 9:19pm
Hong Kong stocks are set to extend gains on Friday on the back of continued strength in overseas markets, although the benchmark index could be capped by key technical resistance.

Seoul stocks rise; Shinhan shares hit by scandal
2 Sep 2010 at 9:19pm
Seoul shares rose on Friday led by tech issues such as Hynix after gains in a U.S. semiconductor index, but Shinhan Financial retreated amid a scandal involving the group CEO.

JGBs fall after data continue easing economy worries
2 Sep 2010 at 9:18pm
Japanese government bonds fell on Friday, with the benchmark 10-year yield touching a seven-week high, as stronger-than-expected U.S. housing data added to this week's list of indicators that have eased worries about the global economy.

IPO fund employs a broader, buy-and-hold strategy
2 Sep 2010 at 9:17pm
Investors who want to grab a hold of the resurgent IPO market, but have neither the time or financial muscle to grab all the hot offerings, have an option in the exchange-traded fund market.

Press Digest - Hong Kong - Sept 3
2 Sep 2010 at 9:17pm
These are some of the leading stories in Hong Kong newspapers on Friday. Reuters has not verified these stories and does not vouch for their accuracy.

US markets
2 Sep 2010 at 9:17pm
Stocks advanced yesterday, extending Wednesday's gain that marked the Standard & Poor's 500 index's biggest rally in almost two months, as initial unemployment claims fell and pending home sales unexpectedly increased.

Asia Pacific markets
2 Sep 2010 at 9:16pm
Stocks climbed yesterday, lifting the MSCI Asia Pacific index to a two-week high, as faster-than-estimated growth in US manufacturing supported confidence in global economic growth.

Bourse takes a breather despite gains by gold stocks
2 Sep 2010 at 9:15pm
A rally in gold stocks failed to lift the Top40 index of blue chips, which slipped 0.57 percent to 24 718.08 points, after recording its biggest daily surge since May 26 on Wednesday.

Governor is not in exile, says China's central bank
2 Sep 2010 at 9:14pm
Chinese central bank governor Zhou Xiaochuan had delivered a speech yesterday on the management of foreign reserves and the balance of international payments at the Chinese Academy of Governance, the bank said on its website.

Need a Reason to Panic?
2 Sep 2010 at 5:54pm
Jason Farkas submits:As the U.S. dollar approaches an important bottom and U.S. stocks appear to be near a pivotal top, we here at EWI are prepared for trend changes. But most investors will be caught off guard, as there doesn’t appear to be any fundamental rationale for markets to turn now. So we’ve highlighted a few items that are likely to become front-page news after the next wave of decline has begun. Most prognosticators and Monday-morning quarterbacks will blame the decline on events like these, but, in reality, markets make the news (not the other way around). Future Headline: Euro Weakens on Belgians’ Waffling Current clues: The three regions of Belgium are seeing increasing tension that may lead to a break-up. What would happen to its sovereign debt obligations, which stand at 100% of GDP, should the language-divided country splinter? Keep in mind that this country is larger than Greece in terms of its share of global GDP (.8% versus .6%).Complete Story »

Volatility ETN May Hold the Answer to S&P 500's Future
2 Sep 2010 at 3:40pm
Gary Gordon submits: Since late April, U.S. stock assets have labored in an extensive period of corrective activity. Bulls believe that the pullback is helping to restore health to the markets. They contend that the ”weak” always run for the hills, providing opportunity for savvy shoppers to buy great bargain companies at discounted prices. Bears explain that the lengthy period of volatile price movement is merely a prelude to the next great disaster. Not only will sovereign debt default fears be troublesome, but austerity programs to help alleviate unsustainable deficit spending will damage economic prospects. On top of that, bank balance sheets will be exposed, real estate will “double dip,” and stock prices will erode rapidly.Complete Story »

Caution, Investors, Caution
2 Sep 2010 at 9:48am
Soos Global Capital submits:"Caution, Dr. Smith! Caution" A familiar refrain from the mechanical robot in an old TV show called "Lost in Space". In my view, with regard to Wednesday's market activity, the phrase fits. And so does the title of the show.Complete Story »

Rally Is Not Structurally Based
2 Sep 2010 at 7:58am
Yesterday’s rally in the equity markets and selloff in the fixed income markets were impressive. The DJIA was up more than 2.00% and the S&P 500 was up nearly 3.00%. This was due to stronger-than-expected economic data from China and Australia and better-than-expected manufacturing data via the ISM report. The markets paid little attention to the ADP Payrolls report which indicated a contraction of private sector jobs to the tune of -10,000. What many pundits and investors seemingly fail to grasp is that it comes down to domestic jobs. One CNBC pundit proclaimed this morning that due to profits, corporations have the wherewithal to hire. The wherewithal maybe, but there is little desire and even less need to add workers. Some have pointed to the renewed strength in the manufacturing sector. Manufacturing makes up less than 10% of the U.S. economy. Even there most blue collar jobs have either been automated or sent overseas. For example: Caterpillar’s CEO said the company could add up to 9,000 jobs in the coming month… worldwide. Chances are that most actual manufacturing jobs will be created close to end users where labor is less expensive and logistics make local production more cost-effective.Complete Story »

Corporate Profits Get No Respect
2 Sep 2010 at 7:26am
Tom Armistead submits:Every time the first revision of GDP comes out, I have been doing an article on Corporate Profits, postulating a relationship to the level of the S&P 500 and making investment decisions on that basis. This time around the material has been covered in large part by capable contributors here on Seeking Alpha.This article opens with a graph of Corporate Profits against the S&P 500, as I have done in the past, and from there it moves along to some new ideas that incorporate prevailing interest rates and unemployment into the equation. Here is the original chart (click to enlarge images):Complete Story »

Death Knell for Fundamental Investing?
2 Sep 2010 at 7:13am
New Finance submits: Much has been made of the irrationality and borderline schizophrenia shown in the markets in recent weeks. With the markets reacting to every little bit of economic information as if it were the end-all be-all of market indicators, investors are donning bear and bull suits every other day! On Tuesday the markets went up 2.7% on news that most would have trouble using to justify such an upswing. Now, perhaps there were just that many undervalued bargains to be had on the markets, but my gut tells me that it was more of a hungry hippo reaction to a treat dangled from the Institute for Supply Management.The old adage used to be that the tortoise would beat the hare, no matter the speed at which the hare zigged, zagged and changed directions; patient investors will be rewarded over the long run. However, investors hoping to retire soon and looking at their 401ks from the red may have something to say about that assumption. As a result of this irrational market behavior, more and more theorists have drawn the conclusion that fundamental valuation is dead.Complete Story »

Why Stocks Are the Cheapest They've Been in 50 Years
2 Sep 2010 at 7:00am
Jesse Felder submits: There is a vociferous ongoing debate about current stock valuations. Some argue that stocks are "dirt cheap" while others flatly disagree.To illustrate, below is a chart of the price-to-earnings ratio of the S&P 500 using an average of its trailing five year earnings, my preferred method (data from Robert Shiller):By this measure, stocks currently trade at a p/e of about 20, just above their 50-year average of roughly 19. Certainly this does not mean stocks are cheap.However, everything is relative and comparing stocks' earnings yield (earnings divided by price) to that of the 10-year treasury bond we see a very different picture. The chart below plots the ratio of these two measures back to 1960:As the chart demonstrates, for the first time in over 50 years the S&P 500 sports an earnings yield more than twice that of the 10-year treasury bond. Thus investors can safely say that stocks, relative to bonds, are indeed very cheap. Disclosure: noneComplete Story »

Wall Street Breakfast: Must-Know News
2 Sep 2010 at 6:07am
Wary China may review BHP's Potash bid. Nervous about market concentration, China may launch an antimonopoly probe into BHP Billiton's (BHP) $39B bid for Potash (POT), sources said. BHP, which declined to comment, is only seeking regulatory clearance in the U.S. and Canada. China is also said to be planning to review the merger of two Russian potash firms because of the impact these deals could have on the country, though it's unclear what practical steps China can take if it opposes either of the bids. In related news, China's Sinochem has reportedly hired HSBC (HBC) to advise it on its options regarding Potash (POT), though sources said the move is preliminary and doesn't mean a counteroffer is necessarily forthcoming. Petrobras, Brazil reach controversial oil deal. Brazil's state-controlled Petrobras (PBR) agreed to pay the federal government $42.5B in stock in exchange for five billion barrels of deepwater reserves. The deal is a controversial one, as investors say Petrobras is paying more than the oil is actually worth, and shares of Petrobras have already fallen significantly this year as investors worried just such a scenario would occur. Petrobras also plans to sell new shares to the public to raise an additional $25B as part of the plan. Lilly scores court victory on generics. Eli Lilly (LLY) scored a victory yesterday after an appeals court upheld a ban preventing Teva (TEVA) from selling a generic version of Evista, Lilly's osteoporosis drug. Evista sales were $259.5M in the second quarter, and the patents are valid through March 2014. Connecticut AG probes First Niagara-NewAlliance deal. Connecticut is investigating First Niagara Financial's (FNFG) proposed $1.5B takeover of NewAlliance Bancshares and has asked the banks to justify the merger. Connecticut Attorney General Richard Blumenthal said the state may choose to only approve bank mergers that benefit Connecticut's economy and the public, and that the First Niagara deal "raises significant and far-reaching legal and public policy issues." If approved, the tie-up will be the largest U.S. bank deal in nearly two years. FDIC loses closely-watched bank case. A closely watched court decision found the FDIC is not entitled to the $900M that it had demanded from Colonial BancGroup, the parent company of failed Colonial Bank. The FDIC had argued that Colonial Bank had signed a 2008 memorandum of understanding in which it said it would try to increase its capital, and the $900M represented the capital shortfall at Colonial Bank when it was seized in the biggest bank failure of 2009. However, the judge found that the memorandum of understanding didn't represent a commitment, a ruling that will undoubtedly be seized upon by other holding companies that ended up in bankruptcy after regulators closed their lending operations. GE preps for possible spending spree. General Electric (GE) could spend up to $30B on takeovers in the next two to three years, said John Rice, one of the company's four vice chairmen, but would do so in a way that's compatible with plans to boost its dividend and buy back shares. The comments signal GE is pulling away from the defensive position it took during the recession, with one analyst calling it a "sea change" in the company's thinking. Shares of GE closed up 3.7% yesterday. SEC investigates quote stuffing. The SEC is reportedly looking into "quote stuffing," the practice of placing an unusually large number of buy or sell orders for stocks in a fraction of a second, and then canceling the orders almost immediately. Regulators are concerned the practice is putting some investors at a disadvantage because it distorts stock prices, and are also checking if quote stuffing may have played a role in May's flash crash. Vale loses auction for copper smelter. Brazil's Vale (VALE) said it failed to acquire base metals and fertilizers holding company Paranapanema SA in an auction because the number of shares tendered was below the minimum threshold. Vale had been hoping to pick up Paranapanema, Brazil's only copper smelter, for about $1.13B to provide cost-savings in its growing copper business. Two Lehman units face failure. In a bankruptcy court filing yesterday, Lehman Brothers (LEHMQ.PK) said two of its units are struggling, and they need hundreds of millions of dollars to prevent a failure that could cost Lehman billions. The two units, Aurora Bank and Woodlands Commercial Bank, are struggling to meet capital requirements because of restrictions from regulators, including a limited ability to issue new CDs. Lehman estimates that failure to resolve the units' capital issues would result in losses of $1.2B-3.6B. November IPO likely for GM. General Motors reportedly plans to start wooing investors for its initial public offering after the midterm elections on Nov. 2, and will likely price its IPO on Nov. 17. The plan is subject to change based on the performance of the U.S. stock market. Auto sales show weakness. U.S. auto sales fell 21% in August compared to a year ago, although the comparison is a bit skewed as August 2009 was a strong month for sales thanks to the government's cash-for-clunkers program. One of the few firms to post gains was Chrysler, which saw sales rise 7% because of increased orders from corporate fleets. Ford (F) sales were down 11%, GM's sales were down 25%, and Toyota's (TM) were down a sharp 34%. Despite the precipitous year-on-year drop in sales, car companies remain confident that the industry's steady recovery is still on track. Mixed reviews on Apple upgrades. As usual, plenty of hype surrounded Apple's (AAPL) annual fall media event yesterday. In the end, the company unveiled a new line of iPods and a smaller, cheaper version of Apple TV for streaming movies and TV shows over the internet and into the living room. Gadgeteers generally liked the iPod updates, including a touch-screen nano, but said the "closed-minded" Apple TV is little more than a "Netflix (NFLX) streaming box." Shares of Netflix jumped 7.5% yesterday thanks to its new key role in Apple TV. Apple closed up 3%. Earnings: Wednesday After Close SAIC (SAI): Q2 EPS of $0.42 beats by $0.09. Revenue of $2.8B (+1.6%) in-line. Shares +1.3% AH. (PR, earnings call transcript) Today's Markets In Asia, Japan +1.5% to 9063. Hong Kong +1.2% to 20869. China +1.3% to 2656. India +0.2% to 18238. In Europe, at midday, London -0.1%. Paris -0.1%. Frankfurt -0.3%. Futures: Dow -0.2%. S&P -0.2%. Nasdaq -0.1%. Crude -0.2% to $73.77. Gold flat at $1247.90. Thursday's Economic Calendar Chain Store Sales 6:00 Monster Employment Index 7:45 ECB Announcement 8:30 Initial Jobless Claims 8:30 Productivity and Costs 9:00 FCIC Hearing: Too Big To Fail (Bernanke, Bair) 9:00 Fed Conference: REO & Vacant Properties 10:00 Factory Orders 10:00 Pending Home Sales 10:30 EIA Natural Gas Inventory 4:30 PM Money Supply 4:30 PM Fed Balance Sheet Notable earnings before Thursday's open: DLM Notable earnings after Thursday's close: FNSR, HRB Seeking Alpha's Market Currents team contributed to this post.Complete Story »

Bill Miller: Large Cap Stocks Are 'Bargains of a Lifetime'
2 Sep 2010 at 5:45am
Ravi Nagarajan submits:Bill Miller, Chairman and Chief Investment Officer of Legg Mason Capital Management, believes that investors who fail to purchase American large capitalization stocks may be missing a “bargain of a lifetime”. In an article that appeared in The Financial Times yesterday, Mr. Miller argues that large cap stocks have not been as cheap relative to bonds since 1951 and concludes the article as follows:I was one year old then, but did not have sufficient sentience to invest. I do now, and if you are reading this, so do you.Complete Story »

Market Review: Traders, Investors Turn Defensive on Bad Economic News
2 Sep 2010 at 5:10am
A barrage of bad U.S. economic news stoked recession fears in August, causing investors and traders to turn decidedly defensive. The S&P 500 dropped 4.5% last month, with defensive sectors such as healthcare and utilities dramatically outperforming cyclical areas. U.S. small-caps fell 7.5%, consistent with the risk-aversion theme.Foreign stocks fared better; the MSCI World Ex-U.S. Index declined 2.7%, thanks to relative strength in emerging markets, which have been showing signs of “decoupling” from the morass of the developed world. Investors continue to seek refuge in Treasury bonds and gold, which have been the favored asset classes since stocks peaked in April (Exhibit 1).Complete Story »

Big Move Coming or a False Rally?
2 Sep 2010 at 4:35am
Jeff Pierce submits: I mentioned yesterday here on twitter that the markets seemed like they were gearing up for a big move. I just had the direction wrong and never thought Obama could move that many people to jump back in the markets, but it is what it is. Oh, and I also included my twitter feed on my site (right sidebar near the middle) for those who haven’t embraced that technology yet, so you can see what I see when I don’t have the time to do a blog post. Anyhow, before I talked about the markets, click on the chart below, for Cycle Country Accessories (ATC). I mentioned this stock 3 days ago and it was up over 50% yesterday. That is unreal. I think I’m going to start focusing more time on Canadian equities because lately I’ve been huge % gains on those stocks that have been showing up on my scans. Tell me that one of you out there was smarter than I and picked up some shares of ATC….Complete Story »

The Volatility Continues
2 Sep 2010 at 4:30am
Stocks soared yesterday as the ISM data came in stronger than expected. In a nutshell here is the number:U.S. AUGUST ISM MANUFACTURING INDEX RISES TO 56.3 FROM 55.5.The growth here is hardly impressive. I think the market breathed a huge sigh of relief that the number didn't collapse like virtually all of the data has throughout the summer. The ADP jobs number came in worse than expected but the bulls seemed to be too busy buying stocks yesterday to notice: This morning, ADP, a payroll processing firm, put out its latest employment report. It isn’t good. Between July and August, private employers shed an estimated 10,000 workers; economists expected an increase of about 20,000 jobs.Complete Story »

Will Markets Follow Through, Or Was Wednesday Just a Trap?
2 Sep 2010 at 2:54am
Michael Kudrna submits: The bulls were looking for a reason to buy at these low levels and yesterday provided that oversold opportunity. China PMI came in slightly better than expected and that was a big relief to most concerned over the continuous soft data we have seen recently. The bulls gapped-up on this news only to see better-than-expected ISM index numbers, which fueled another leg up on the day. The bulls were able to shrug off the terrible ADP employment numbers as well, which was encouraging. Estimates were for an increase of 13,000 (actually a wide range of estimates that were even higher) but instead, nonfarm private employment decreased 10,000 from July to August on a seasonally adjusted basis. While this doesn’t necessarily mean Friday’s job reports will be lower than expected, it surely does not give confidence it will meet or exceed expectations. This leads to a very important question for both bulls and bears. If we have weaker than expected numbers on Friday, do we lose all these gains?Complete Story »

Markets Appear Ripe for a Sustainable Bullish Turn
2 Sep 2010 at 2:33am
Chris Ciovacco submits: Early September is very important for the financial markets; especially for the bulls. Numerous elements are in place for a rally to take hold now. The markets have been weak and the bears have been in control. If the bulls cannot make a stand soon, it will be a bad sign for risk assets. The good news for the bulls is several factors, across numerous markets and asset classes, are pointing to a possible rally in risk assets:Bearish sentiment is high at the moment. Sentiment, especially as it approaches extremes, can serve as a contrary indicator.The Fed has signaled they are willing to print more money if needed. Right, wrong, or indifferent, the markets are anticipating more quantitative easing from the Fed. The Fed's next meeting is only three weeks away. Markets look forward. A rally in risk assets for a few weeks is not out of the question.Currency and interest rate markets are acknowledging the possibility of the Fed cranking up the printing presses. In recent weeks, the U.S. dollar and the 10-Year Treasury have been firmly in the bears' camp, but they are sitting near logical points of reversal. Recent rallies in the 10-Year Treasury have been showing signs of fatigue, which also points to a possible reversal in interest rates.Better than expected manufacturing data from China and better than expected growth in Australia have been reflected in the copper market. Emerging market stocks closed yesterday at a logical point of reversal; this morning's news from China and Australia could spark a rally.Despite weeks of disappointing news on economic progress in the United States, the S&P 500 and Dow have yet to revisit their June lows, which is hard to believe given the recent lack of interest from buyers. When markets do something you do not expect, it is time to pay attention.Monday's sell-off appeared to be a win for the bears, but unlike recent down days for stocks, total market volume contracted relative to the volume during Friday's Fed-induced and broad-based rally. The S&P 500 and Dow have both held at logical reversal pointsSince a picture is worth a thousand words, we can show most of these concepts on the charts below. When you examine the charts, ask yourself, "Based on the actions in the past from market participants, is it logical for this market to reverse near current levels?" If the answer is yes, then the next thing to look for is some confirmation from the markets, which can come in the form of market breadth (advancing issues vs. declining issues), volume, and whether or not a broad cross section of markets are moving in the same direction (stocks, commodities, interest rates, currencies, etc). This analysis was completed after Tuesday's close (8/31); so none of Wednesday's (9/1) gains are reflected.Below is an "after" and "before" chart (click to enlarge) showing an area of a possible reversal for the S&P 500.Complete Story »

So How'd You Like That ISM Number?
2 Sep 2010 at 1:37am
Karl Denninger submits: A better question is, "do you believe it"? From the ISM report here: Manufacturing continued to grow in August as the PMI registered 56.3 percent, an increase of 0.8 percentage point when compared to July's reading of 55.5 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.Complete Story »

Data Points: U.S. Markets
2 Sep 2010 at 3:59pm
The Dow Industrials rose 50.63 points, or 0.49% to 10320.10. The Nasdaq Composite gained 23.17 points, or 1.06% to 2200.01. The S&P 500 added 9.81 points, or 0.91% to 1090.10.

The Safe Havens Are Looking A Little Crowded
2 Sep 2010 at 3:07pm
Prices of U.S. Treasurys, German Bunds and British Gilts -- all safe haven investments -- are falling, falling, falling.

Data Points: Energy & Metals
2 Sep 2010 at 2:27pm
Nymex crude gained $1.11 per barrel, or 1.50% to $75.02. Comex gold gained $5.20 per troy ounce, or 0.42% to $1251.50.

Bloody August Jobs Report? Buy Stocks!
2 Sep 2010 at 1:13pm
The S&P 500 tends to like bad jobs reports rather than good ones.

Data Points: Europe
2 Sep 2010 at 12:38pm
The FTSE 100 gained 4.63 points, or 0.09%, to 5371.04. The Stoxx Europe 600 lost 0.01 points, or 0.004%, to 258.18.

3G Capital Buyout: “Good Thing” for Burger King
2 Sep 2010 at 11:10am
Investors and analysts alike are eating up Burger King's plan to go private.

Three’s Company: H-P Shoves Dell In Bid To Win 3PAR
2 Sep 2010 at 9:04am
The high-profile tussle over data-storage firm 3-PAR reaches its end-game.

Forget Jobless Claims. Keep Your Eyes On August’s Jobs Report
2 Sep 2010 at 8:15am
Traders aren't dismissing Thursday's good economic news. They're just more worried about Friday.

Signs of Hope For Back-to-School Sales
2 Sep 2010 at 7:32am
Things look gloomy for America's retailers this fall, but there are glimmers of hope, too.

Europe: Stock Rally Peters Out, Waits For U.S.
2 Sep 2010 at 7:06am
September's stock rally is already looking a little fatigued, but that could change as the latest U.S. labor market numbers give investors more to chew on.

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