5 reasons the market is seeing red
5 reasons the market is seeing red

Geopolitical crises are taking a toll on stocks as we head into the seasonally weak month of August.

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The banks report second-quarter earnings.

By MSN Money Partner Jul 13, 2012 8:58AM

By Michael Baron, TheStreet.com


JPMorgan Chase (JPM):

The Dow component announced that it's restating its first-quarter results lower to reflect the impact of attempts to mask the extent of losses suffered by its Chief Investment Office at that time.


"The firm has recently discovered information that raises questions about the integrity of the trader marks and suggests that certain individuals may have been seeking to avoid showing the full amount of the losses in the portfolio during the first quarter," JPMorgan said in a filing with the Securities and Exchange Commission.

 

Here are 3 possible consequences if a deal between the TV network and Microsoft goes through.

By TheWeek.com Jul 12, 2012 4:41PM

NBC, which is owned by General Electric (GE), and Microsoft (MSFT) are reportedly in talks to part ways over MSNBC.com, according to Howard Kurtz at The Daily Beast. The network would buy back "the remainder of their hugely popular MSNBC website from the software giant," says Kurtz.


The reported deal (which NBC did not confirm, while saying such "conversations" are ongoing) would end a marriage that began in 1995, when the two companies came together to launch the cable channel MSNBC and its accompanying website. Microsoft pulled out of the cable channel in 2005, but continues to own a 50% stake in the site, which "ranks among the top three in online news sites," says Andrew Kirell at Mediaite.


Under NBC's control, the site will reportedly be rebranded as NBCNews.com, a big change for a recognizable Web destination.

 
Tags: GEMSFT

Martin Whitman's fund buys conservatively valued long-term holdings.

By GuruFocus.com Jul 12, 2012 4:27PM

Martin Whitman is in the process of handing the reigns over to his successor Ian Lapey at $3.8 billion-worth Third Avenue Management. Lapey was promoted to sole portfolio manager on March 1, 2012. Whitman remains as chairman of the board of trustees and mentors the investor team. Year to date, the fund has returned 12.68%, recovering from its 11.68% downturn in the last year.

 

The investors in the third quarter bought four new stocks: Devon Energy (DVN), Comerica (CMA), Alleghany (Y) and White Mountains Insurance Group (WTM).

 
Tags: CMADVN

Some thoughts on what CEO Jamie Dimon may do to restore shareholder confidence.

By Minyanville Jul 12, 2012 4:11PM

Friday morning at 7:00 a.m. EDT, JPMorgan Chase (JPM) will report its financial results for the second quarter. Analysts are expecting earnings of 76 cents per share and revenue of $21.70 billion.

 

What everyone is most worried about is how big the losses from the Chief Investment Office may wind up being. On May 10, CEO Jamie Dimon announced that the firm had lost more than $2 billion of mark-to-market losses in its synthetic credit derivatives trading. These were linked to trading in an older-dated North American Investment Grade Credit Default Swap Index, IG9, set to expire in June of 2017. The loss alone in that index was originally reported to be $800 million, with further losses in more recent and liquid indexes bringing the total to $2 billion.

 
Tags: JPM

Turnarounds take time, but investors may not want to wait.

By Jonathan Berr Jul 12, 2012 1:52PM
Image: Golf Ball (© Fuse/Getty Images)Callaway Golf (ELY) has gone from Wall Street hero to zero.

The maker of golf equipment announced plans Thursday to slash 12% of its workforce, cut its sales forecast and suspend its full-year projections. CEO Chip Brewer said in a press release that the company's business has not recovered at a "satisfactory pace" and that "we no longer expect year financial results will be significantly better than last year."
 
The timing of the announcement is strange.
 

The real-estate investment trust modifies its mortgage loan in order to retain key properties.

By Zacks.com Jul 12, 2012 1:26PM

By Zacks Equity Research
 

MPG Office Trust (MPG), a real-estate investment trust (REIT) based in Los Angeles, recently announced that it has extended the maturity date of its mortgage loan worth $400 million for an additional year.


The extension of credit facility, which will mature on Oct. 9, 2013, is a part of the company's strategy to retain the KPMG Tower property in downtown Los Angeles.

 
Tags: MPG

Stocks pare earlier losses but remain down despite a drop in initial jobless claims. SVU tanks nearly 50%.

By MSN Money Partner Jul 12, 2012 1:02PM
Information provided by Theflyonthewall.com 

Investors begin to focus their attention on the upcoming bank earnings, with JP Morgan (JPM) and Wells Fargo (WFC) due to report prior to the open Friday.

Merck (MRK) shares rose $1.73, or 4.20%, to $42.93 after the company said it was ending a trial of its treatment for post-menopausal patients with osteoporosis early because the results were so favorable. Following the announcement, Citigroup upgraded Merck to a "buy" and raised its price target on shares to $50 from $34.  

The search company is spending big money to manufacture its tablet.

By Benzinga Jul 12, 2012 12:50PM
By Louis Bedigian, Benzinga Staff Writer

Google (GOOG) will reportedly earn a small profit on the standard $199 Nexus 7 tablet.


MarketWatch reports that the manufacturing costs alone for each device come in at $152. That leaves a profit of $47, but does not include other costs, like marketing or distributing. IHS, which analyzed the seven-inch tablet, estimates that Google's expenses are $18 higher than what Amazon (AMZN) now spends on manufacturing the Kindle Fire.

 

With the founders firmly in charge, it seems they sometimes have other priorities, which makes this writer mad.

By Wall St. Cheat Sheet Jul 12, 2012 11:55AM

By Damien Hoffman

 

Back in the day, company founders and CEOs cared about their public shareholders. People had something called a conscience. Fast-forward to the 2000s and these same moguls couldn't care less.

 

First, Mark Zuckerberg sucked every last drop of value from Facebook (FB) shares at the IPO. Groupon's (GRPN) founders did the same. Public shareholders? Oh, they are bag holders. Didn't you know?

 

A deal would create the country's largest carrier and could jack up ticket prices.

By TheWeek.com Jul 12, 2012 11:51AM

Image: Airline (© Christie & Cole/Corbis)This week, American Airlines said that it would formally begin reaching out to potential merger partners, reportedly including competitor U.S. Airways (LCC), which has been relentlessly pursuing a merger for months.


The announcement from parent company AMR Corp. (AAMRQ) marks an about-face for CEO Tom Horton, who has long insisted that the company first emerge from bankruptcy proceedings, which it began in November, before considering a merger. However, Horton has been under pressure from AMR unions and creditors to team up with U.S. Airways, which would create the country's largest airline and a formidable competitor for United (UAL), which recently merged with Continental, and Delta (DAL), which combined with Northwest.

 
Tags: DALLCCual

Delta, United are initiated at Goldman with a 'sell,' and Tyson Foods is downgraded to 'underperform' at BofA/Merrill.

By MSN Money Partner Jul 12, 2012 11:31AM
Information provided by Theflyonthewall.com

Thursday's noteworthy upgrades include:  
  • Chevron (CVX) upgraded to Neutral from Underweight at JPMorgan
  • Disney (DIS) upgraded to Outperform from Market Perform at Wells Fargo
  • Merck (MRK) upgraded to Buy from Neutral at Citigroup
  • SunPower (SPWR) upgraded to Overweight from Neutral at Piper Jaffray
 

The stock hits an all-time low with earnings just around the corner.

By Benzinga Jul 12, 2012 11:03AM

By Brett Callwood

 

The shares of e-commerce marketplace Groupon (GRPN) on Wednesday dropped to the lowest levels since going public in November. They are dropping another 5.5% in Thursday morning trading.

 

According to CNBC, trend-tracking site ComScore reported a 15% decline in traffic in June compared to the previous year. In the same month, Groupon had 12.25 million visitors, down 2.25 million from June last year.

 

Marriott, InterContinental and Starwood lead an early rebound.

By Gene Marcial Jul 12, 2012 10:39AM

The lodging industry was one of the hardest hit sectors of the economy, with the major multinational hotel companies bearing the brunt of the global recession's adverse impact. But as the industry started to recover this year, the same top hoteliers and hospitality companies that reeled from the downturn are now  leading the recovery's early phase.

 

So shares of top-ranking lodging companies, Marriott International (MAR), InterContinental Hotel Group (IHG) and Starwood Hotels & Resorts (HOT), have been on the rise, even as other lodging stocks are still nursing their wounds.

 
Tags: HOTIHGMAR

Companies and consumers are sitting on their wallets, and we should not be surprised.

By Jim Cramer Jul 12, 2012 9:52AM

What the heck happened to spending? Everywhere we turn, we see that spending has been cut. Wednesday night we looked at Adtran (ADTN), a run-of-the-mill supplier to the telcos, and it is talking about a big decline in spending by the companies. That's something, because they always have to spend to keep up.

 

We heard Wednesday from Burberry and Levi Strauss that people aren't spending for either the high end or the low end, as Burberry's goods cost a ton and Levi Strauss' don't.

 

Its bankruptcy could start a parade, so beware of falling miners.

By InvestorPlace Jul 12, 2012 9:45AM

By Aaron Levitt

 

It's been a rough few months for companies and investors in the coal sector.

 

First, advances in hydraulic fracturing and horizontal drilling have unearthed a virtual ocean of natural gas and have dropped prices to decade lows. Those low prices have scads of utilities preferring it over coal. Already, more than 112 older coal-fired power plants are scheduled to retire across the country, as electricity producers switch to cheaper and greener gas. Then came the Obama administration and the EPA's sweeping rules designed to limit carbon-dioxide emissions from new power plants. These rules effectively block the construction of new coal-burning plants and make natural gas even more attractive.

 

Add these two points to slowing global growth, and it's no wonder the coal industry continues to be hit hard.

 

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[BRIEFING.COM] The stock market punctuated July with a broad-based retreat that sent the S&P 500 lower by 2.0% with all ten sectors ending in the red. The benchmark index posted a monthly decline of 1.5%, while the Russell 2000 (-2.3%) underperformed to end the month lower by 6.1%.

To get a better feel for what led to today's retreat, we'd like to look back to Wednesday, when the market had ample reason to rally, but did not. Instead, it ended basically flat after a sloppy day of ... More


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