Stocks should be crushed by global turmoil, Jim Cramer says. Instead, they're doing fine.
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Some companies are reporting huge revenue gains despite the region's ongoing monetary problems.
By Tom Aspray, MoneyShow.com
While U.S. investors in the last quarter feared a new recession triggered in part by the ongoing European debt crisis, U.S. companies were still making money in eurozone nations. A recent article in The Wall Street Journal reported that of the 39 companies in the Standard & Poor's 500 Index ($INX) that reported sales to Europe, revenue was up 11.4%.
Compared to 2010, the 2011 sales to Europe were a bit lower, but still accounted for well over 24% of the global revenue of the 39 companies. (See the report here.)
Investors shouldn't get so excited about benchmark numbers that make good headlines but mean little in a vacuum.
But guess what. Not a single one of those numbers means a darn thing. At least not without context.
At risk of revealing that the emperor has no clothes, let me clue you in to a dirty little secret about the financial media: We're short-sighted number junkies. So do yourself a favor and don't place too much weight on the aforementioned data points bandied about in a vacuum with no background.
MSN Money's Anthony Mirhaydari answers Facebook users' questions about energy prices.
Where are oil prices headed, and what does it mean for you, the economy and stock prices? In this video, MSN Money columnist Anthony Mirhaydari explains why he sees oil prices falling in the coming months.
And as he answers questions from MSN Money's Facebook community, Mirhaydari also explains why alternative energy is the sector to avoid.
It's a breakthrough that will speed up short sales of housing, reduce inventory and lift home prices.
That's why this $25 billion settlement between the federal and state governments and five big banks and mortgage services, over the outrageous foreclosure procedures these institutions used during this period, is so important to the progress that's so needed for this incredibly important issue, the one that precipitated the U.S. downturn and remains at the epicenter of the tepid pace of the recovery.
Strong revenue growth was driven by higher prices and rise in volumes.
Fourth-quarter sales increased by 5% to $11.04 billion, supported by higher prices and a 3% rise in volume, the company announced Tuesday. Profit fell 71% to $1.66 billion from $5.77 billion, mostly due to a one-time gain associated with the acquisition of bottling operations in 2010. However, excluding special items, profit rose 10% to 79 cents per share from 72 cents a year earlier.
Coca-Cola currently competes PepsiCo (PEP), Dr. Pepper Snapple Group (DPS) and other domestic players.
The oil company will double the number of exploratory wells it digs this year and increase organic capital expenditures.
More critically, the company managed to increase its oil and gas production volumes in the upstream segment after a few quarters of production declines. Going forward, BP plans to increase its exploration activity in 2012 with a particular focus on deepwater prospects.
Refining results in the fourth quarter were hit by lower downstream margins, with operations in the U.S. getting a particularly hard beating.
These regional banks scored best in a screen for performance and yield.
Over 400 banks and thrifts have failed since the beginning of 2008, following the housing bubble burst. And many once-stable dividends disappeared in the blink of an eye.
The banking sector has been slow to recover. For instance, the Financial Select Sector SPDR (XLF), which tracks an index of some of the largest U.S. financial institutions, is still roughly 60% below its price five years ago.
One nice quarter does not make a complete turnaround story. There are too many missing pieces in this puzzle.
By Anders Bylund
The stock rocketed nearly 20% yesterday after a stellar fourth-quarter report. Analysts expected modest non-GAAP earnings of $0.06 per share on $177 million in sales. That would have been a 9.4% year-over-year revenue decline and a very steep profit drop from $0.37 per share.
The heavy machinery maker is strengthening its product portfolio in the 2 countries to meet high demand.
In Japan, Caterpillar is ramping up production capacity to meet higher demand from the rebuilding efforts following last year's earthquake. In North America, the company is sharpening its focus on the waste management industry with its recent alliance with Exodus Machines.
Despite economic uncertainty, the giant retailer forges ahead with plans to increase sales, profitabilty and cash flow.
By Zacks Equity Research
The U.S. economy is still not out of the woods and the European debt crisis continues to take its toll on the financial markets. Despite all this, Macy's Inc. (M) has managed to keep up its momentum.
With the holiday season over, consumers are giving their wallets a rest as they await another round of austerity measures. This was evident from Macy's lower-than-expected January comparable-store sales results. However, it also marked the 26th successive month of year-over-year sales growth.
Nearly 2 years after the Gulf of Mexico oil spill, the Macondo well still casts a long shadow over the company's valuation and prospects for a higher stock price.
What mattered when BP (BP) reported its earnings this week wasn't what happened in the just-ended fourth quarter (pretty good news -- it beat analysts' earnings forecasts by a penny a share; revenue jumped 15%).
And it wasn't what happened Wednesday (it boosted its quarterly dividend 14% to 8 cents a share), much less what is happening to its underlying business (CEO Bob Dudley predicted operating cash flow could surge 50% if oil prices remain around $100 a barrel).
Earnings show Akamai will ultimately emerge as a cloud-focused software company.
Shares of Akamai (AKAM) surged in after-hours trading Wednesday following a fourth-quarter earnings report that topped estimates. They continued to climb Thursday, more than 10% by midday.
Before the results were issued, I suggested that Akamai was trading at levels that would make either bulls or bears very unhappy once the results were out (see Akamai Earnings Preview: Investors to Ask 'What Have You Done for Me Lately?').
Strong headwinds, including lawsuits and regulatory issues, could slow client activity and dim the stock's appeal.
Whenever the stock market launches a strong advance, as it is doing these days, the major investment banks normally lead the upward parade.
Sure enough, shares of Goldman Sachs (GS) have shown fresh vigor as the market, buoyed by a strengthening economic recovery, has resurged. Goldman's stock has climbed to $115 a share, up from $104 in mid-January 2012. That's way up from its 52-week low of $69 on Feb. 16, 2011.
The online coupon site's share price tumbles after a disappointing earnings report showing a $42.7 million loss.
By Tom Taulli
But that Facebook bump has disappeared in a hurry. GRPN plunged more than 11% in early trading Thursday as the online coupon giant flubbed its first-ever earnings report as a publicly traded company.
Amgen is downgraded to 'perform,' and 3M is downgraded to 'hold.'
Thursday's noteworthy upgrades include:
- Ingersoll-Rand (IR) upgraded to Outperform from Market Perform at Wells Fargo
- Walgreen (WAG) upgraded to Outperform from Neutral at Macquarie
- Celanese (CE) upgraded to Buy from Hold at Jefferies
- CIT Group (CIT) upgraded to Overweight from Equal Weight at Morgan Stanley
- Akamai (AKAM) upgraded to Buy from Outperform at CLSA
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The idea of US crude being a shelter from turmoil abroad may not be as far fetched as it seems.
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[BRIEFING.COM] The stock market capped the trading week with losses across the major averages. The S&P 500 fell 0.5% to surrender its weekly gain, while the Dow Jones Industrial Average (-0.7%) and Russell 2000 (-0.9%) underperformed. The two indices posted respective losses of 0.8% and 0.6% for the week.
Equity indices were pressured from the get-go after several heavyweights disappointed the market with their earnings and/or guidance, which led to some broader profit-taking. After ... More
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