Tech fell so far at the start of the new millennium, it was difficult to imagine that the index could ever make up what it lost.
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Investors weren't too thrilled with the company's lineup of news, and the S&P 500 falls below the key 2,000 level.
By Anthony Mirhaydari
Hype met reality on Tuesday, and the results weren't pretty.
Investors weren't impressed with the new product debuts from Apple (AAPL), including the iPhone 6 (in two sizes!) and the Apple Watch (with a scroll knob!). Not even a live performance from U2 could save the day.
As result, the Standard & Poor's 500 Index ($INX) lost 0.7 percent, dropped below the all-important 2,000 level, and suffered its worst two-day selloff since early August. Apple dropped 0.4 a percent after testing its 50-day moving average in a way that hasn't been seen since April.
Moreover, high-yield junk bonds continue their weak streak, with the Barclays High Yield Bond ETF (JNK) down another 0.5 percent to breach its lower Bollinger Band for the first time since July as concerns over rising rates and the end of the Federal Reserve's QE3 bond purchase program next month rattle the fixed-income market.
The market began to implode 6 years ago, and even now it is just a shell of its former self.
This month marks the sixth anniversary of one of the most dramatic episodes in the history of the U.S. economy.
Over the course of three weeks in Sept. 2008, Fannie Mae (FNMA) and Freddie Mac (FMCC) were nationalized, Lehman Brothers filed bankruptcy, Bank of America (BAC) agreed to acquire Merrill Lynch, the Federal Reserve bailed out AIG (AIG) with an $85 billion loan, and the FDIC seized savings-and-loan giant Washington Mutual.
Had the financial crisis been a typical recession, it would have been long forgotten by now. But it wasn't. And, as a result, we're still living with the consequences.
Nowhere is this more apparent than the housing market. Even though soaring home prices have led some to proclaim a new bubble, the evidence is clear that the markets for both new and existing homes remain a fraction of their former selves.
The stock's dividend is going to trump sales, the CNBC host says, and investors still have faith in CEO Don Thompson.
"[The] dividend is going to trump sales. This stock is going to find a bottom here," Cramer said on "Squawk on the Street."
August sales were down roughly 4 percent while its stock currently sports a 3.5 percent dividend yield, he noted.
That juicy dividend yield is not the only reason investors held on to the burger joint's stock either, Cramer said.
Stocks are unstoppable. If you're a bear, you have to wonder if you're in the Twilight Zone.
Everyone believes the U.S. stock market has reached a permanently high plateau. Everyone, that is, but the bears.
Last week's Investors Intelligence survey showed bearish sentiment at its lowest since 1987 (13.3 percent).
In fact, short-sellers have nearly disappeared along with the few remaining bears. In addition, the VIX (VIX) is at historic lows (near 12), which reflects investor complacency.
Put another way, almost no one believes this market will go down.
Ironically, retail investors are not as gung-ho about the market as in the past. Viewership of financial television programs is at 20-year lows, especially in the coveted 25-to-54 age group. It's a sign that even as the market climbs higher, interest in the stock market is falling along with volatility.
The new site sells remote-controlled machines ranging in price from $36 to $1,300.
Music, books, clothes . . . and drones?
The site features dozens of drone brands like DJI and Parrot, as well as tips that encourage buyers to "fly responsibly."
Prices on the remote-controlled machines, which can be deployed for recreation or picture taking, range from $36 to $1,300.
How to make sense of General Mills' purchase of Annie's?
My jaw dropped when I saw it. General Mills (GIS) to buy Annie's (BNNY) for $46 a share. Forty-six dollars! An astounding 37 percent premium to the close and a 51 percent premium to the last thirty days.
General Mills, the best-run traditional food company in the packaged goods industry, buying the most challenged -- some would say most poorly run -- independent natural and organic food business in the entire segment.
It's the ultimate comeuppance, some would say even the ultimate embarrassment, because General Mills has about the longest-running history of disciplined capital allocation, while Annie's has pretty much disappointed for multiple quarters. It has had a very sorry execution pretty much for most of its two and a half years of public existence.
Yet when the dual releases came out it was all victory lap for John Foraker and his Annie's team. Under the heading "Annie's to be acquired by General Mills for $46 per share in cash," the company's second line of the release after the terms are stated seems downright surreal: "This acquisition will enable Annie's to enter a new phase of growth and success while maximizing value for stock holders." Huh? I though General Mills was buying Annie's. This makes it sound like the other way around.
The brand, which is owned by JAB Holdings, may list in London as soon as this month.
Luxury shoemaker Jimmy Choo, made famous by Sarah Jessica Parker's character in the HBO show Sex and the City, is looking to go public to the tune of about $1 billion.
The brand, which is owned by JAB Holdings, may list an initial public offering as soon as this month in London as demand for high-end shoes grows. Bank of America (BAC) will manage the sale, and HSBC Holdings (HSBC) has also been retained, people familiar with the deal told Bloomberg News.
The IPO comes in the wake of a shake-up in the world of designer shoe-wear. Nine West Footwear Group was spun off of Jones Group after the company was snapped up by private equity firm Sycamore Partners for $2.2 billion in April.
Looking at stocks through 4 different indicators gives an almost identically bearish view.
Making the bullish case is getting a lot harder.
Let's say that you want to wriggle out from underneath the bearish conclusions of the cyclically adjusted price-to-earnings ratio (CAPE), which for some time now has been very bearish. Sidestepping that conclusion turns out to be a lot harder than you think.
The CAPE is the version of the traditional P/E ratio that has been championed by Yale University finance professor (and recent Nobel laureate) Robert Shiller.
Currently, for example, the CAPE stands at 25.69, which is 55 percent higher than its average back to the late 1800s of 16.55 and 61 percent higher than the ratio’s median level of 15.95. In fact, there have been only three times since the 1880s when the CAPE has been higher than where it stands today: 1929, 2000 and 2007 -- all three of which, of course, coincided with major market highs.
The company is no longer the chain with the most 'kid appeal.' A smaller upstart has taken its place.
Now it looks as if McDonald's has a problem with kids, too. The company has lost its first-place position as the chain with the most "kid appeal," reported Crain's Chicago Business.
The new favorite, according to Sandelman & Associates, a restaurant research firm, is Chick-fil-A. It's one of several fast-casual chains that are appealing because they serve "real" food. Chipotle Mexican Grill (CMG) is another.
There's a lot of hype. If you're considering a play on either stock, consider first what your objective is.
Beginning Tuesday, investors are presented with two "second-coming" opportunities. But the question whether to buy or sell has less to do with the unknown of how these opportunities perform initially, and more to do with something investors already know.
Let's start with what's happening.
First, Apple (AAPL) is set to unveil upgrades to its iPhone line and, potentially, release a wearable device, probably a watch.
For the company, it's the biggest and most crucial roll-out in Tim Cook's role as CEO following the death of Steve Jobs in October 2011. To many, Apple has been adrift since Jobs' death. This is a critical moment to see if Cook can keep the mojo of his late predecessor.
Retailers have taken a page from Amazon's own playbook by turning many of their stores into distribution centers that can fill online orders quickly and efficiently.
Brick-and-mortar stores, which have been hammered by online retailers like Amazon (AMZN), are starting to fight back.
Big-box retailers like Walmart (WMT), Target (TGT) and Best Buy (BBY) are ramping up their online operations and seeing sales boom, making inroads against e-commerce giant Amazon.
The retailers, which also include Macy's (M) and Home Depot (HD), have taken a page from Amazon's own playbook by turning many of their stores into distribution centers that can fill online orders quickly and efficiently.
U.S. retail e-commerce sales reached $75 billion in the second quarter, up 4.9 percent from the previous three-months, according to the Census Bureau. It marked the second consecutive quarter in which the sequential growth rate has accelerated -- following a 3 percent increase in the 2013 holiday quarter, U.S. retail e-commerce sales gained 3.3 percent in the first quarter.
The big action was in the currency markets Monday as the focus turned to political and economic turmoil in Europe and Japan.
By Anthony Mirhaydari
Stocks finished mixed on Monday, with bonds continuing their recent string of weakness, as the big action was over in the currency markets.
In the end, the Dow Jones Industrial Average ($INDU) lost 0.2 percent, the Standard & Poor's 500 Index ($INX) lost 0.3 percent but was able to hold the all-important 2,000 level that it's been flirting with for weeks, the Nasdaq Composite Index ($COMPX) gained 0.2 percent, and the Russell 2000 ($TOMX) gained 0.2 percent.
A combination of detonation in Japanese economic data, new cheap money stimulus measures in Europe and the rising potential for a Scottish independence vote all undercut foreign currencies. The U.S. dollar soared as a result.
Yes, it's cheap relative to other major carriers, but there's a reason for that.
However, investors should consider using the recent rally as an opportunity to sell and get out.
While bulls think United Airlines stock is cheaper than that of network carrier rivals Delta Air Lines (DAL) and American Airlines (AAL), it doesn't trade at a big enough discount given its weak financial track record and future prospects.
Most analysts who recommend United Airlines stock do so because it is cheap relative to other major airlines. United was named a top pick on Tuesday by Hunter Keay of Wolfe Research.
They're increasingly seen as a good option for those just starting to invest or for those who aren't actively trading.
It's no wonder that target-date funds have emerged as a welcome staple in many workers' 401k plans.
These funds, whose assets automatically shift into more conservative investments as individuals approach retirement, offer sophisticated and diversified exposure to Wall Street with little effort by the investor.
"Most investors tend to be hands-off," said Janet Yang, a senior analyst at fund-tracker Morningstar. "If you aren't willing to do the research of individual stocks or individual mutual funds and rebalance your portfolio once a year, target-date funds are a good 'set-it-and-forget-it' investment."
A target-date fund gets its name from the year in which an investor anticipates retiring. So, for instance, investors in a 2040 fund today will watch their assets gradually move from riskier investments -- which come with the potential for higher returns -- to more conservative options, such as bonds and cash, the closer they get to 2040.
Yet stock ownership for the wealthy is at a new high, adding to their fortunes as the market continues to hit records.
The widening gap between the wealthy and the rest of America during the recovery can largely be explained in one word: stocks.
According to recent data from the Federal Reserve, America has the lowest level of stock ownership in 18 years. Yet stock ownership for the wealthy is at a new high -- and that has accounted for most of their good fortune compared to the rest of America.
The Federal Reserve Survey of Consumer Finance found that only 48.8 percent of Americans held stock either directly or indirectly in 2012, the latest period measured.
That's the lowest level since 1995, when 40.5 percent of Americans held some form of stock. (Indirect ownership of stock includes stocks held in mutual funds, 401k plans and other investment vehicles.)
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[BRIEFING.COM] Equity indices extended this week's losses with a broad-based retreat. The S&P 500 fell 0.6% to end the week lower by 1.1%, while the Russell 2000 (-1.1%) finished with a 0.9% decline since last Friday.
Staying true to the theme observed throughout the week, the energy sector (-1.5%) tumbled out of the gate, thus dragging the broader market down with it. Once again, dollar strength and crude oil weakness contributed to sector's underperformance, but the ... More
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