Stocks plunged Wednesday after Federal Reserve Chairman Ben Bernanke said a stronger economy may allow the Fed to end its bond buying program later this year.
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Is there a comparison between the actions of Tony Hayward and those of Nero?
My local paper had three front-page photos this weekend. The first showed chief executive Tony Hayward yachting. The second compared the environmental impact of the oil spill to the Dust Bowl disaster of the 1930s. And the third showed the massive fires in the Gulf burning off the oil. Flip in one page, and there was a picture of workers in jumpsuits with hand tools cleaning the beaches.
There's a reason stocks kept rising last week: China's revaluation of the yuan.
By Jim Cramer, TheStreet
The market knew something, all right. That persistent bid underneath that we all sensed, we all felt, turned out to be dead right.
I thought it might be because the euro was holding. Or because the Spanish banks had at last broken the backs of bearish investors. I thought it might be that employment is getting stronger -- or, more likely, has to get stronger -- because some companies, like General Motors, aren't doing their usual furloughs. I thought it might be the final financial regulation rules and how they wouldn't be that onerous.
I didn't think it would be China, because I already checked off the Chinese recovery box last week -- one of the key props I needed to see before we could leave the 2010 bear market behind.
The market's real smart.
With leading economic indicators and the stock market going up, I think this will be a great summer.
Value Line Index -- Approximately 1,700 stocks, so it is much broader than the S&P 500 or the very narrow Dow 30: Up for the week.
- The index was up 2.51% for the week
- The index is up 1.13% for the month
- The index has been up 3 weeks and down 2 weeks
- The index closed Friday above its 20- and 100-day moving average but below its 50 DMA
The latest attempt is more modest, and finally under way: "It's Steven and Stacey taking chances on projects they believe in"
It’s back, but just what is it this time?
That’s the essential question, as DreamWorks roars back to life after spending much of 2009 in the credit-market wilderness following its divorce from Paramount.
Now with over $800 million in privately procured financing in the bank and with the launch of six movies into production, the studio begins what can be termed its third life stage -- operating as a privately funded company with only one of the original Big Three founders, Steven Spielberg, still running the show.
Unshackled from their unhappy Paramount home, and beginning a more simple life as a pure-play movie-production house, DreamWorks officials brim with the kind of hope that can only be found at a studio that hasn’t been around long enough to see anything flop.
The summer rally is definitely a rally, but it's not going to be huge.
Question: Are you bullish or bearish?
Answer: It depends on what time period we're talking about.
In the very short term -- say, the next four to six weeks -- I'm bullish. I think the market is gradually inching its way higher after breaking through resistance at 1108 on the Standard & Poor's 500.
The summer rally could take us up another 30 or 40 points on the S&P 500 from here.
Luxury mattresses are becoming more popular, even as the economy teeters.
Sealy (ZZ) is making more mattresses for the luxury crowd, and just debuted the black-and-gold Golden Elegance king model for $4,999, The Wall Street Journal reports.
But that's nothing compared to the $44,000 "Sublime" mattress coming out later this year from California-based E.S. Kluft. It will likely become the most expensive American-made mattress, joining the ranks of other mattresses made with cashmere, mohair, silk and crimped wool, writes Anjali Athavaley.
Many non-financial U.S. firms are awash in cash, and my Guru Strategies are keying on several of them right now.
We've all heard the reasons to be fearful of stocks right now -- potential spillover from the European debt crisis, questions about the housing recovery's sustainability, a burgeoning national debt and budget deficits. All of those (and more) have been highlighted pretty extensively in the media.
But there are also plenty of reasons to be optimistic. And in a recent opinion piece for The Wall Street Journal, strategist Bob Doll pointed out some particularly interesting bullish signs. In fact, Doll (portfolio manager and chief equity strategist for fundamental equities for Blackrock) said that despite the formidable challenges the U.S. faces, “overweight positions in U.S. equities are more than warranted” right now.
One of the most interesting factors Doll addresses involves corporate balance sheets. Unlike many companies in other countries, U.S. firms went into cost-cutting mode and became much more efficient when the financial crisis hit, he writes. As demand rebounds, that has them in very good shape. For nonfinancial companies, cash on the balance sheet is close to 11% of assets -- a 60-year high, he says. And he notes that, according to Citigroup, unit labor costs are falling at the fastest pace in 40 years.
The bank wants to raise billions for funds that could be banned by the government.
The bank is looking for investors so it can raise $3 billion for its private-equity and hedge funds, Bloomberg reports. But the government is thisclose to banning banks from owning those same funds.
Lawmakers are trying to reconcile the House and Senate financial reform bills, and one of the elements being discussed would limit a bank's ability to trade stocks and bonds for their own accounts, Bloomberg reports. It would also ban them from owning hedge funds or private-equity firms.
The number of initial public offerings has rebounded this year. Here are some of the big winners so far.
By Robert Holmes, TheStreet
Initial public offerings dried up in 2008 amid the global economic crisis, but 2010 is shaping up to be a rebound year in terms of IPO volume in the U.S.
According to Renaissance Capital's IPO Home Web site, 57 IPOs have been priced in 2010, a 533% increase from the same time period a year ago. More than $8.5 billion in total proceeds have been raised so far this year; that's over 350% more than in the first six months of 2009.
While 2010 has nearly eclipsed the previous year in terms of the number of IPOs (57 already in 2010 to 63 in all of 2009), the average IPO return in 2010 has been -3.6% from the offer price, a statistic that may scare investors away from initial public offerings in the second half of the year. However, some IPOs have rewarded investors with substantial returns. TheStreet examines the highest-returning IPOs in the first half of 2010 and what investors can expect the rest of the year.
Unless the market knows something we don't, there's little room left at the top of this rally.
By Jim Cramer, TheStreet
All my trading life, I have tried to see order where there appeared to be chaos. I always wanted to know what the market knew, what made it act the way it did when I couldn't understand it for a couple of days.
We are in one of those moments. I tried so hard this week to be as bullish as the market was, and to figure out why I would want to buy, knowing what I know. And, more important, why I would want to buy aggressively at some times, when it seemed to make no sense.
I scan the headlines. The news in retail is worse than I thought, in part because of the Gulf spill and in part because of a malaise that seems to have set in nationally. OK, that's what I see. What could the market be seeing that I don't? I think the spill is causing some of the malaise. Does the market think the spill's about to end, or that the damage is not as great as I do? I am willing to consider it. But as I have said many times here, I think it is far worse than many people think, and that the plans for stopping it aren't as likely to work as if it just runs its course. One hundred million barrels. That's a lot of course to be run.
Impala Platinum is in a downtrend, so it's a good time to sell.
I’m going to use the current bounce, World-Cup-rally, summer rally, whatever, to sell my position in Impala Platinum (IMPUY). (For more on the possibility that this is the start of the summer rally, see this post).
The South African stock looks like it’s in a steady down trend despite its 13.8% gain off the June 4 low. Platinum was bid up heavily by traders who bought it as a speculative precious metals play on market volatility, but the problem with platinum -- unlike, say, gold -- is that it’s both a precious metal and an industrial metal.
With the European economy slumping and the U.S. economy showing signs of slower growth, the industrial demand for platinum hasn’t lived up to hopes, and traders have been unwinding positions since April. (The company paid a half-yearly dividend on March 15.)
The retailer wants people to commit now to spending holiday money at its stores.
Toys R Us has Santa on the brain already, and has started a Christmas Savers Club to help people start saving now, DailyFinance reports.
It's a fine idea to start saving this early -- and Toys R Us even gives you a little reward for doing so -- but the problem with this club is that there's only one retailer who will accept all those accumulated dollars.
Here's how it works:
Investors expect the iPhone to be a big hit and are looking for signs that Verizon might sell the model.
By Scott Moritz, TheStreet
According to Digitimes, Apple's contract manufacturers plan to ship a CDMA version of the iPhone in the fourth quarter. This information confirms a report last month from TheStreet that Apple had told its iPhone manufacturing partners to start full-scale production of a CDMA iPhone to be available as a Verizon iPhone, as early as November. Verizon uses the CDMA, or "code division multiple access," technology.
The news comes as pre-orders for Apple's redesigned iPhone 4 outpace supply. They have even exceeded the sales volume of the previous iPhone by a factor of 10.
A partnership between BK and the Xbox will help promote both the King and the new Kinect motion control system
A strange press release has been floating around cyberspace today, outlining how Burger King (BKC) is partnering with Microsoft (MSFT) on the launch of the new Xbox 360 motion control system called the Kinect. The strange partnership has been turning more than a few heads, even though its extremely light on the details.
The Kinect goes on sale in November, and is getting a lot of buzz because the technology allows gamers to control characters on the screen simply by moving around and not by pushing buttons or swinging a remote controller. But what in the heck does Burger King have to do with video games?
Actually, more than you may think.
FedEx projects strong growth, but its shares dropped after a disappointing earnings outlook.
By Ted Reed, TheStreet
In reports issued after the company's earnings call, two analysts cited price targets of $100 while a third said $113. Historically, the analysts said, FedEx trades at 18 to 21 times earnings. In trading on Wednesday, FedEx shed $4.94 and closed at $78.07.
Before the opening Wednesday, FedEx projected earnings of 85 cents to $1.05 a share in the current quarter and $4.40 to $5 for fiscal year 2011. Analysts surveyed by Thomson Reuters had been estimating $1.03 for the current quarter and $5.05 for fiscal 2011.
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[BRIEFING.COM] Equities ended on their lows with the S&P 500 down 1.4%.
The S&P entered today's session with a week-to-date gain of 1.5% as investors expected reassuring words from today's Federal Open Market Committee Statement.
Stocks traded with slim losses until this afternoon's FOMC Statement and subsequent comments from Chairman Bernanke sent equities and Treasuries to their lows while also providing a significant boost to the dollar.
Today's Statement was ... More
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