Why stocks are in for a rough ride this week
Stocks in for a rough ride this week

Longtime market bull Jeremy Siegel says investors could realize the market is behind the curve on interest rates.

VIDEO ON MSN MONEY

Tough times can lead to great opportunities for investors who buy solid income stocks that the market has turned its back on.

By MoneyShow.com Mar 16, 2012 9:11AM

By Julie Carnevale, FASTgraphs.com

 

We believe that based on earnings, 2012 is starting out with the stock market undervalued. We believe in the long-term ownership of great businesses purchased at sound and attractive valuations. Consequently, we view the stock market as merely the store that we shop at in order to buy the businesses we want to own.

 

Furthermore, we do not rely on the market to set the price at which we are willing to buy or sell. Instead, we prefer to calculate the intrinsic value of the business based on the company's earnings power. If the market price is at or below that level of valuation, we will be a buyer. If not, we either look elsewhere or patiently wait for the True Worth™ valuation to manifest.

 

The shipping company is in talks to buy a Dutch rival. Banks express interest in buying AIG's mortgage-backed assets.

By TheStreet Staff Mar 16, 2012 7:53AM

By Andrea Tse

 

Updated at 8:20 a.m ET

 

United Parcel Service (UPS) said Friday it was in "constructive" talks to buy TNT Express, its Dutch rival. UPS said it plans a formal bid by May 12. UPS last month offered to buy TNT, the second-largest express delivery company in Europe, for 9 euros a share, or $6.4 billion, but the offer was rejected.

 

Barclays (BCS), Credit Suisse (CS) and Goldman Sachs (GS) are among the banks interested in buying American International Group's (AIG) mortgage-backed assets that were tied to the insurance company's bailout, The Wall Street Journal reported. The face value of the assets is $47 billion, the newspaper said, and are held by the Federal Reserve Bank of New York, which acquired the assets as part of the $182 billion bailout of AIG in 2008.

 

The company is dropping clothing from 10 locations and looking to shutter some Hometown and Hardware stores.

By Kim Peterson Mar 15, 2012 6:15PM
Image: Sears sign© Spencer Platt/Getty Images News/Getty ImagesSears Holdings (SHLD) already said it would close as many as 120 Sears and Kmart stores this year in an effort to turn the business around. But that wasn't enough.

The struggling retailer said Thursday it will have to tighten its belt even more. Sears is now planning to close 43 Hometown stores, 10 Sears Hardware stores and all nine stores in the Great Indoors chain. Hometown stores are independently operated, and sell hardware in mostly rural areas.

Sears is also getting rid of clothing in 10 Sears stores -- perhaps in a test run for a chain-wide initiative in the future. 

Many have held out hope for gold-mining stocks, but negative technical signals actually warned of this week's high-volume decline.

By MoneyShow.com Mar 15, 2012 5:04PM

Image: Small Stack of gold ingots (© Anthony Bradshaw/Photographer)By Tom Aspray, MoneyShow.com


The gold miners were hit very hard Wednesday, and the widely watched Market Vectors Gold Miners ETF (GDX) fell 3.8%. The fund was flat Thursday. For much of 2011, many investors and analysts have hoped that the mining stocks would finally catch up with gold prices and the primary gold ETF, the SPDR Gold Trust (GLD).


Of course, hope is not a good investment strategy, and the technical readings for gold mining stocks have turned more negative in the past month.

 

A lot of people just don't know the satellite radio leader.

By Motley Fool Pick of the Day Mar 15, 2012 4:57PM

By Rick Aristotle Munarriz |

 

How well do you know Sirius XM Radio (SIRI)?

 

You may know a lot about the history of satellite radio and the merger that stitched XM to Sirius in a company that now combines for 21.9 million subscribers. However, I still see a fair deal of misinformation out there put out by investors, analysts, and financial writers from both the bullish and bearish camps.

 

I figured I would go over a couple of the things that irk me. Here are two myths that are often said about Sirius XM that are just not fundamentally true.

 
Tags: AAPLSIRI

The US and the UK are reportedly teaming up in an effort to ease prices at the pump.

By Wall St. Cheat Sheet Mar 15, 2012 4:52PM

Image: Gas station © Purestock/Purestock/Getty ImagesThe United States and Britain agreed Thursday to release emergency oil reserves in an effort to prevent high gasoline prices from further crippling the economy, Reuters reported.


A formal U.S. request asking the United Kingdom to release oil from government-controlled reserves is expected shortly, the news service reported, citing sources. The request would follow a meeting Wednesday in Washington between President Barack Obama and Prime Minister David Cameron, who reportedly discussed the issue.

 

As anticipated, the upscale retailer's profits fell. Management projects a dismal outlook for the full year.

By Benzinga Mar 15, 2012 4:32PM

By Katey Stapleton, Benzinga Staff Writer


As CEOs tend to do, Guess' (GES) Paul Marciano attempted to save face by claiming on an earnings call Wednesday that his company can withstand the dismal economy in Europe. But investors weren't buying it.


Guess shares fell more than 12% in after-hours trading Wednesday. On Thursday, shares fell more than 10% to close at $32.97. The drop reflected expectations that the bleak European market Marciano mentioned would hurt customer spending.

 

Lloyd Blankfein is in the crosshairs after a former employee accuses the company of ripping off its clients.

By TheWeek.com Mar 15, 2012 4:06PM
In the banking equivalent of the shot heard round the world, Goldman Sachs (GS) executive Greg Smith announced his resignation Wednesday in a devastating New York Times opinion piece that accused the firm of ruthlessly exploiting its clients for profit.

Smith assailed Goldman for its "toxic and destructive" business practices and "morally bankrupt" culture, and placed the blame squarely on CEO Lloyd Blankfein. The controversial Goldman boss has already been blasted by lawmakers for his company's dubious deals, and has forked over millions of dollars to settle fraud charges brought by the SEC.  
Tags: CGSJPM

Unlike many Americans, Bill Weldon has nothing to fear from retirement.

By Melly Alazraki Mar 15, 2012 3:21PM

Image: Bundles of US one hundred dollar bills in bird © Don Farrall/Photodisc/Getty ImagesBill Weldon is stepping down next month as Johnson & Johnson's (JNJ) CEO, but he will remain chairman of the board. When he eventually retires from the chairman position, he stands to collect a package currently valued at $143.5 million. As Napoleon Dynamite would put it: "sweet!"

 

Weldon's package, as reported by Dow Jones based on the company's filing, breaks down to two main components. The first is accumulated-pension benefits valued at $48.4 million. The second is accumulated deferred compensation, which amounts to $95.1 million.

 
Tags: JNJ

The company made the moves hours after the Federal Reserve announced the latest stress-test results.

By Jim J. Jubak Mar 15, 2012 2:33PM
That didn't take long.

Hours after the Federal Reserve announced on March 13 that US Bancorp (USB) was one of the 15 financial companies that had passed its annual stress test (for more on the stress-test and winners and losers see my post) and could therefore go ahead with plans to raise dividends and increase its share buyback program -- the Minnesota-based bank did exactly that.

The board of directors approved a 56% increase in dividends to a quarterly 19.5 cents a share (78 cents annually) payable on April 16 to shareholders of record on March 30.
 
Tags: USB

The company is on track for growth -- with or without approval of the Keystone XL pipeline.

By TheStockAdvisors Mar 15, 2012 2:19PM
By Roger Conrad, The Utility Forecaster

TransCanada Corp. (TRP) has underperformed every other North American pipeline company since early November 2011.

That's when the Obama administration officially put the company's Keystone XL project on hold. Despite this move, we view the stock as a core holding in our model growth portfolio. 
Tags: TRP

The young-adult book series helped Scholastic achieve a great quarter, and shares of Lions Gate have risen on its movie plans.

By Kim Peterson Mar 15, 2012 1:49PM
"The Hunger Games" is exactly what Scholastic (SCHL) needed.

Strong interest in the young-adult series is generating oodles of cash for the book publisher. As a result, the company beat expectations for its most recent quarter and raised its outlook for the full year.

Sales of the series of novels have spiked, the company said, as anticipation grows ahead of next week's release of the big-screen adaptation of the first book in the series. 

The search engine's stock has slumped this year, while its rivals' shares have taken off.

By Jonathan Berr Mar 15, 2012 12:58PM
Image: Google © Bloomberg, Getty ImagesCongratulations to Google's (GOOG) public-relations department. It managed to persuade The Wall Street Journal to write an article on its plans to "fix the shortcomings of today's technology and maintain its dominant market share" -- without saying much new.

This is a transparent attempt to drum up interest in its shares, which are down about 4% this year, while rivals Microsoft (MSFT) and Apple (AAPL) have both risen by double digits. Investors are still smarting over the search engine giant's disappointing fourth-quarter results. 

This high-flying tech stock shows no signs of slowing down.

By InvestorPlace Mar 15, 2012 12:24PM

By Jeff Reeves

 

Apple (AAPL) is arguably the most amazing tech company in history. It has redefined how we listen to music and use our phones, and it has almost single-handedly moved the world beyond the idea of desktop computers and tactile keyboards.

 

As an investment, the stock is equally amazing. The latest milestone for Apple is that it briefly traded above $600 a share Thursday morning. And that raises an important question: How long can Apple stock keep up this kind of growth?

 

The answer: Probably for a long time to come.

 

AMD is upgraded to 'buy,' and Ariad Pharmaceuticals is initiated with a 'buy.'

By MSN Money Partner Mar 15, 2012 11:21AM
Information provided by Theflyonthewall.com

Thursday's noteworthy upgrades include:
  • Invesco Mortgage (IVR) upgraded to Outperform from Market Perform at FBR Capital
  • Public Storage (PSA) upgraded to Outperform from Neutral at Credit Suisse
  • Level 3 (LVLT) upgraded to Buy from Neutral at BofA/Merrill
  • AMD (AMD) upgraded to Buy from Hold at Jefferies
  • Union Pacific (UNP) upgraded to Overweight from Equal Weight at Barclays
  • Veeco (VECO) upgraded to Buy from Hold at Deutsche Bank
  • Aixtron (AIXG) upgraded to Buy from Hold at Deutsche Bank
 

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[BRIEFING.COM] The major averages posted solid gains ahead of tomorrow's policy directive from the Federal Open Market Committee. The S&P 500 rallied 0.8%, while the Russell 2000 (+0.3%) could not keep pace with the benchmark index.

Equity indices hovered near their flat lines during the first two hours of action, but surged in reaction to reports from the Wall Street Journal concerning tomorrow's FOMC statement. Specifically, Fed watcher Jon Hilsenrath indicated that the statement ... More


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