VIDEO ON MSN MONEY
Companies used to split their stocks to keep prices attractive. Not anymore.
That's the opinion of Howard Silverblatt, a senior index analyst at Standard & Poor's, according to Bloomberg. Three companies in the S&P 500 Index are splitting this week, which is a little unusual.
But a decade ago, Bloomberg reports, that would have been par for the course.
The stock looks locked into a short-term down trend.
The stock has not performed well on up days for the market and looks locked into a short-term down trend. (On the chart, Microsoft is flirting with a negative cross-over, where the 50-day moving average breaks below the 200-day moving average.) The stock traded just below $25 in late Wednesday trading.
I might want to own this one in the fall again when visions of higher sales for the Vista operating system and for Office 2010 start to dance in investors' heads.
The bailed-out insurance company gets harsh comments from an investigating panel.
A panel investigating the bailout said that the federal government -- still an 80% owner in the company -- will likely continue as a significant shareholder through 2012, according to The Wall Street Journal. Taxpayers still "remain at risk for severe losses," the panel added.
AIG continues to be an embarrassment for the federal government, having received around $132 billion in aid from the Treasury Department and the Federal Reserve Bank of New York.
Microsoft's finance department suffers from the same problem many investors do: it cannot sit on its hands.
The software company will use the sales proceeds to repay short-term debt. If it was any other company I’d ignore this news as a daily noise, as this kind of things happens all the time.
But Microsoft has $39 billion of cash and generates $16-$17 billion of free cash flows a year. Issuing short-term debt, for which Microsoft will surely pay higher interest than it receives on the pile of its cash makes absolutely no economic sense -- zero.
Sometimes an ETF can be a smarter choice when structuring a long-short deal.
Pairs trading is when you trade two securities against each other in a long-short strategy, targeting a specific area in which they are different. "Pairs trading attempts to control for outside risk and allows you to focus on just one risk at a time," writes Michael Rawson.
For example, Rawson writes, if you thought the iPad would steal market share from Amazon's Kindle, you would simply buy shares of Apple (AAPL) and short Amazon (AMZN). That's an easy example. The bigger problem with pairs trading, Rawson writes, is that you need to have two good trading ideas when even one is sometimes hard enough to find.
The increase in China's exports and imports is big news because it wasn't supposed to happen.
By Jim Cramer, TheStreet
We just get a number, simply a blow-away number, from China, showing much stronger exports and imports -- fully 50% more than people were looking for in terms of exports -- and what's the first thing the reporter and the anchor ask? "Is it sustainable?"
Wait a second. It wasn't even supposed to happen. This is huge news. China was supposed to be slowing to a crawl as they break the real estate market -- people are still looking at prices, which were up, and not transactions, the precursor, which are down huge -- and yet the economy there roared. That means they need more of our imports.
That means Europe is still growing, because China sells more into Europe than the U.S.
Rumors of solid economic numbers from China could give investors some comfort.
If only this leak is correct!
Reuters is citing three unnamed people who report that a Chinese government official told an investment conference that May consumer prices rose at an annual rate of 3.1%, exports jumped 50% in the month, and new loans totaled $92 billion.
If those numbers are correct, investors can tune down fears that the euro debt crisis and China's own efforts to rein in inflation have slowed its economy by a notch. It won't be possible to discern a strong positive trend in the numbers, I'd guess, but the leaked figures at least don't show a strong negative trend, either. And in the current situation, that's a big plus for financial markets.
Despite a lot of volatility, stocks have been trapped by two important technical levels. That's about to change.
Stocks continued to act like little schizophrenic chipmunks on Wednesday after a 126 point gain in the Dow Jones Industrial Average that took the big cap index over the 10,000 level was reversed into the closing bell. The small caps in the Russell 2000 managed to close with a small gain.
It's sure been a directionless couple of weeks -- since May 20 the Wilshire 5000 Index, the broadest gauge of the U.S. stock market, has lost about 1%.
But boy have things been volatile: There have been new fewer than six sessions since then (out of 13) that have resulted in a change of more than 1% for the Wilshire. So although it feels like we've all been put through the ringer, the equity market really hasn't gone anywhere since mid-May.
It's the five-year anniversary of Alan Greenspan's "bubble" speech.
"Although a 'bubble' in home prices for the nation as a whole does not appear likely, there do appear to be, at a minimum, signs of froth in some local markets where home prices seem to have risen to unsustainable levels," he testified to a Congressional committee.
June 9 has become known as National Froth Day, according to Jon Lansner at The Orange County Register. It's a time to "honor our inability to see a brewing bubble," he writes.
The number of new drugs being developed is falling. Who's to blame?
Is it even worth it to invest in pharmaceutical companies anymore? Last year, only 25 new drugs were approved, reports The Atlantic.
Drug companies aren't producing as many new products these days. And groundbreaking, blockbuster arrivals are scarce -- which is surprising given the technology and resources available to scientists at those companies.
It's hard to pinpoint exactly why this is happening. Are the companies to blame, or is it the Food and Drug Administration's fault?
One analyst ups her price target and now expects iPad sales of 10 million this year.
The firm's Apple analyst, Katy Huberty, has raised her price target to $332 from $310, Fortune reports. Her increase is largely driven by the iPad, which is seeing surprisingly strong sales. Apple shares were in the $249 range Wednesday.
Some analysts, like Charlie Wolf at Needham & Company, expected Apple to sell 2 million iPads this year. Turns out Apple did that in two months.
Look at an agribusiness that has website, Facebook, Twitter and You Tube pages as a long term holding
Over my lifetime I've seen the same story unfold over and over again. Someone accumulates raw land with the idea of building an agribusiness like a dairy, cattle farm or orchard and is pretty successful. A city not far away begins to grow and pretty soon the suburbs stretch right to the border of the farm and the farmer becomes a real estate developer.
I grew up in Fort Lauderdale and saw that happen in Davie as dairies, cattle farms and orange groves became housing projects. My brother lives in Loxahatchee west of Palm Beach and now you see shopping centers and high schools surrounded by orange groves. Before Walt Disney changed it all, sleepy Orlando was a cattle and citrus farming town. I watched this happen on the north side of Atlanta and now I'm watching the same thing happen on the south side of Charlotte.
I've never had the capital to make major investments in real estate except for ventures into small rental units and REITs but maybe you can.
Burger King is ramping up its frozen food and snack lines in an effort to tap into bigger sales.
The debate over whose fries are better, Burger King (BKC) or McDonald's (MCD), is one of the oldest fast-food fights in the industry. But rather than just limit the debate to the drive-thru window, Burger King has changed the battlefield to the supermarket aisles.
How? Well, with a new line of frozen foods that include crinkle-cut French fries and healthy apple fries coming soon to your grocer’s freezer. There’s even a healthy line of Apple Fries, with the fruit skinned and cut to look like French fries and packaged in that familiar BK cardboard cup.
With China's property market bottoming and middle-class growth intact, we can cross one item off our list of concerns.
By Jim Cramer, TheStreet
We can cross off one item from my checklist. The data coming out of China this week is showing robust growth with less inflation and a taming of the red-hot property market. I am willing to state that this development is unequivocally good news and can be a major reason we can stabilize, and a reason we may not violate the 9,700 level on the Dow ($INDU) we reached yesterday -- just 200-odd points from where I expressed that we might go without a systemic collapse.
Now, we don't know what China's export numbers are going to be like; they come out tomorrow. But apparently a leak from Reuters -- at least according to Bloomberg -- suggests that the numbers will be strong. When the leak came out, China's stock market spiked.
More important, though, are two pieces of data that matter tremendously:
The company responded quickly to complaints that customers' televisions were stuck on one channel.
Customers poured complaints into DirecTV's customer service department Tuesday, saying their televisions would not respond. This comes a day after the company upgraded its digital video service to allow customers to watch shows in up to 15 rooms with a single high-definition DVR.
The company fixed what it called a "transmission glitch" Tuesday afternoon, however, and apologized to customers for the inconvenience.
MORE ON MSN MONEY
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
Investors see value in Hewlett-Packard and growth in ChannelAdvisor.
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.
[BRIEFING.COM] S&P futures vs fair value: -8.00. Nasdaq futures vs fair value: -14.50. Equity futures trade near their pre-market lows with the S&P 500 futures off by 0.6%.
Today's better-than-expected durable goods report for April provided a brief boost to index futures before the move was retraced entirely.
For April, durable goods orders rose 3.3% after declining an upwardly revised 5.9% (from -6.9%) in March. The Briefing.com consensus expected durable goods ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|