The most likely scenario is that the markets will begin to rise from here -- and that bounce is just beginning to take hold.
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The aluminum giant's earnings fell short, but the stock has a lot of other things going for it in the long term. With video reaction to Alcoa's third-quarter financial results.
Alcoa (AA) disappointed investors big-time Tuesday with earnings missing forecasts by about 32%. But look past the headlines and consider the merits of buying AA stock right now, especially if you are the buy-and-hold type.
Alcoa stock opened down as much as 3% in early trading Wednesday after the aluminum company reported profits of $172 million, or 15 cents a share, for the third quarter. That was well short of the 22 cents per share forecast by Wall Street investment analysts. But there are signs of life at Alcoa -- and reasons to expect the stock is at or near the bottom.
The digital wallet is here, and some stocks may benefit from it.
Tuesday morning brought an announcement from a $750 million company that could potentially continue a revolution worth billions of dollars.
Peet's Coffee & Tea (PEET) announced it will start to accept payments with cards that work with the Google (GOOG) Wallet and MasterCard (MA) PayPass systems. The payments will start to be accepted by the end of the month.
MasterCard has been especially bullish on the mobile wallet, and mentioned it in its earnings release in August. Ajay Banga, MasterCard's president and chief executive officer, made sure to talk about its importance.
Nokia pushed aside its own Symbian platform in favor of Microsoft's new Windows Phone 7.5.
After months in the doldrums, risky assets are pushing up and over critical technical resistance.
Stocks rallied hard on Monday as banks in Europe and now China look ready to enjoy increased backing by the public purse. If there's one thing that's a sure cure for bank solvency concerns, it's an injection of taxpayer money.
The result was a massive surge across the spectrum of risky assets. Stocks, high-yield bonds, industrial commodities, the euro, and precious metals all moved higher. Safe havens like U.S. Treasury bonds and the U.S. dollar moved lower.
It was a beautiful thing. And it was the strongest one-day move since August. Unfortunately, it's catching most investors by surprise.
Chinese consumers can't get enough of Apple's iPad and other devices -- and China's 'gray market' is doing big business as a result.
Fake Apple stores are springing up across the country, and they're starting to have a real impact. About 1.07 million iPads were sold in China in the second quarter, but 49% of those were sold on the "gray market," reports IDG. The iPads were bought overseas and then resold by local vendors.
Networks rely on advertising to recoup the money they pay to broadcast league games.
Those networks own the national broadcast rights to NBA games, and they collectively pay about $930 million to do so. Normally, they get back $1.25 billion in ad revenue, according to TheWrap.
For risk-tolerant income investors, the nation's largest rural telecom offers one of the highest yields in the S&P 500.
After more than doubling its size by acquiring Verizon's wireline assets in mid-2010, Frontier Communications (FTR) is now the largest rural telecom provider in the U.S.
The company pays a quarterly dividend of $0.188 which amount to a yearly distribution of $0.75 per year -- one of the highest yields in the S&P 500.
The charts suggest a major bottom, and if confirmed, solid, risk-controlled entry points in a leading ETF and select oil stocks may soon be presented.
By Tom Aspray, MoneyShow.com
The reversal in the stock market last week was impressive, and with Monday’s sharp gains, some of the Advance/Decline (A/D) lines have overcome first key resistance. This makes it more likely that the stock market completed a significant bottom last week. The extent of the selling on the first pullback will tell us more.
Crude oil has also rebounded sharply, as the December contract closed last week $8 above the lows. As discussed previously, crude oil often leads the S&P 500 and its tracking ETF, the Spyder Trust (SPY). The weekly volume pattern in crude oil is consistent with the formation of an intermediate-term low, which if confirmed should be a positive for stocks as well.
Therefore, a pullback in the United States Oil Fund (USO), a leading crude oil ETF, as well as in two select energy stocks, should provide a good entry point on the long side where the risk can be well controlled.
Funds aren't flowing so freely in Silicon Valley, so new technology stocks may have trouble getting off the ground
So long, tech bubble of 2011.
Stock speculators and doom-mongers alike had such great hopes for the new tech bubble. Privately held shares of the hottest web companies commanded valuations in the tens of billions of dollars, ratcheting up with each SecondMarket auction. Social media brands that ventured into the public market surged. LinkedIn (LNKD) left many, including me, wondering if the mania of the dot-com days had returned.
But so much has changed since LinkedIn went public – starting with LinkedIn’s stock price: It’s down 38% from its high point of $122.70, reached a few hours after it went public. And now major investor MFS Investment Management is slashing its stake in the social network. It all adds up to a rather ugly state of affairs for tech start-ups -- even the good ones.
These funds are well positioned to capitalize on niche plays.
By Don Dion, TheStreet
Waning European demand and a 15% slide in aluminum prices could dent profits.
By Joseph Deaux, TheStreet
CEO Klaus Kleinfeld has warned investors awaiting the company's third-quarter earnings report after the market close Tuesday that Europe has not seen the usual seasonal upswing from August to September in its flat-rolled segments.
Bridget Freas, Morningstar's aluminum analyst, said there's usually a pickup in September orders but that hasn't yet materialized. Freas doesn't think volume will take a significant hit, however, and said Alcoa's aerospace segment should be strong.
Buying time allowed banks to reposition themselves -- not on the fly, as in 2008, but in a considered way that has reduced our systemic risk.
I come to praise the virtues of kicking the can down the road. Don't laugh or snicker. Wednesday we will hear from JPMorgan (JPM), and we will learn exactly how virtuous the can-kicking game is.
That's what time allows you to do -- to reposition, not on the fly, but in a considered way. And to read the papers and talk among yourselves about country risk and counter-party risk and be set up. That's something that we didn't have time for in 2008.
Analysts are concerned about the company's spending, profitability and debt -- even after the carrier nabs the iPhone.
The stock plunged nearly 8% Monday after at least seven analysts downgraded the stock -- and that's after a 20% drop on Friday. Sprint's spending is much higher than analysts wanted to see, and they weren't willing to cut the company much slack.
"Management must demonstrate an ability to execute against its strategy before investors give the company the benefit of the doubt," said one analyst, Michael Nelson from Mizuho Securities, according to Bloomberg.
The bank passed 2009 and 2010 stress tests, and still needs a bailout. How can you profit from this bad bank?
Dexia agreed to sell its Belgian banking retail operations to the Belgian government for 4 billion euros ($5.4 billion) in order to prevent the Belgian-French financial institution from going bankrupt. Dexia had recently lost access to short-term funding because of concerns over its debt holdings of troubled eurozone countries.
How can investors profit from this news?
If you're expecting to find a lifelong stock commitment, you could get burned.
By Dan Caplinger
For many investors, buying stocks and holding them for the long run is the core principle they follow. Even Warren Buffett has said that "our favorite holding period is forever." But if you invest your money as if every stock you ever buy is one you'll hold forever, you're going to get burned -- because you'll often end up watching hard-earned gains dwindle to nothing.
A perfect picture
The most recent example of this phenomenon is Eastman Kodak (EK), which plunged last week on rumors that it would have to file for bankruptcy, potentially leaving current shareholders with a complete loss on their investment. From its heyday as a technological innovator, Dow Industrial stock, and member of the elite "Nifty Fifty" of the 1960s, the company failed to keep up with the pace of the transformation in its industry brought on by digital photography.
As a "forever" stock, Kodak has turned out to be a huge disappointment. But plenty of investors made lots of money on the stock.
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[BRIEFING.COM] The stock market ended the holiday-shortened week on a mixed note as the Dow Jones Industrial Average shed 0.1%, while the S&P 500 added 0.1% with seven sectors posting gains.
Equity indices faced an uphill climb from the opening bell after disappointing quarterly results from Google (GOOG 536.10, -20.44) and IBM (IBM 190.04, -6.36) weighed on the early sentiment. Google reported earnings $0.15 below the Capital IQ consensus estimate on revenue of $15.42 ... More
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