Geopolitical crises are taking a toll on stocks as we head into the seasonally weak month of August.
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Nabbing the iPhone 5 would be a huge boost for Sprint, but the struggling carrier still needs help.
The Wall Street Journal reports that Sprint will sell the iPhone 5 in mid-October, at the same time Verizon (VZ) and AT&T (T) will also sell the phone. Just getting parity with those rivals is a big boost for Sprint, whose 52 million subscribers far lag the 106 million at Verizon and the 99 million at AT&T.
While it appears to be dropping, it's still more than $30 higher than it was a year ago.
By Dan Dicker, TheStreet
There has been lots of talk about the "big drop" in oil prices over the past several weeks, and talking heads have been quick to see a silver lining in the reduced input costs for manufacturers and for prices that you and I pay at the pump.
Well, I hate to rain on the parade, but the real-world physical price of oil hasn't dropped much at all and is still more than $30 a barrel higher than it was at this time last year.
That's because the "price" of oil that is universally referenced on cable television and in newspapers is the U.S. and NYMEX-traded West Texas Intermediate (WTI) futures contract, a contract with enormous physical problems which has morphed into little more than a financial tool for hedge funds and algorithmic traders, and has become irrelevant to the real world prices that are being paid.
The former offers better growth potential, an analyst says. With video.
By Shanthi Bharatwaj, TheStreet
Last week, UBS analyst William Tanona said Citigroup stock should be priced at premium over Bank of America as it faces "less dramatic uncertainties" from large, mortgage-related liabilities and stronger earnings power.
On Wednesday, Glenn Schorr at Nomura released a report, making similar arguments. While the analyst thinks the selloff in both the stocks is overdone, he still prefers Citigroup and JPMorgan Chase (JPM) over Bank of America.
Here are the 10 things that need to happen before a long-term stock market rally will gain momentum.
These are all super questions that need to be answered. But the only way I know to answer them is to go over a "to be done" list of questions, a list of questions designed to show if things have really changed or if stock prices changed but nothing more.
Yesterday was more of the latter. What makes me say that?
If the broad market finds a near-term bottom, semiconductors should also rebound.
By Tom Aspray, MoneyShow.com
The strong action in the US stock market on Tuesday came as a surprise, as there was little bullish news that the financial press could use to explain the price action. The prevailing opinion seems to be that the further signs of a weakening economy will spur Fed Chairman Ben Bernanke to say something dramatic on Friday.
Of course, from a technical perspective, any news is a distraction because if it is significant, the market usually reflects it well in advance. There has been some short-term technical improvement with Tuesday’s close, and it suggests that we should see at least a test of last week’s highs, if not a rally to stronger resistance over the near term. To support this view, the major averages will need to surpass Tuesday’s highs either Wednesday or Thursday.
The semiconductor sector has been especially weak since the May highs, and the combined analysis of a leveraged long and short semiconductor ETF suggests a potential contra-trend trading opportunity.
Premium lagers are taking the UK by storm as fans flock to their flavor and originality.
That's according to the Guardian, which found research data showing that sales of premium lagers imported from the U.S. have soared by 150% over the past year.
British pub-goers are gaga over Blue Moon and Sierra Nevada Pale Ale. UK grocer Tesco (TSCDY), sensing a trend in the making, is launching those two beers along with Goose Island and Brooklyn at 750 stores, the Guardian reports.
Agriculture commodities are on the move, breaking out of consolidation for the first time since last summer.
It's been a tough summer for stocks and other risky assets -- but the same can't be said for agricultural commodities. Hot, dry drought conditions have ruined crops all across the American growing regions. At the same time, demand remains robust thanks to the big appetites of newly empowered eaters in the developing world.
The USDA cut its forecast of how much of the standing corn crop is in good or excellent shape to just 57%, down from 60% last week and 70% a year ago. Already, with carryover stocks low from last year, a poor harvest will do further damage to meager inventories. At the same time, China has recently become a net importer of corn and last year made its largest purchase of U.S. corn in ten years. Of course, demand from ethanol production continues as well.
The combination of tighter supply and stronger demand is sending prices higher once more. As a result, as a group agricultural goods are pushing up and out of a long seven-month downtrend dating back to February. A powerful new uptrend is being established. Here's how to take advantage.
The company now counts on emerging markets for most of its sales. This isn't the Tupperware of old.
The stock is on a roll, up nearly 4% Tuesday to $62.20. Shares have soared 50% in the past year. Investors are confident that Tupperware has evolved from the jello-mold days of old into a company that now has a worldwide presence.
Tupperware has a direct sales force of 2.6 million around the world, the company tells The Associated Press. The old-fashioned Tupperware party is still around -- but now one takes place every 1.7 seconds, compared with every 2.3 seconds a few years ago.
These blue chips show strength and stability in any economic environment.
By Tom Aspray, MoneyShow.com
The downgrade of the United States’ AAA debt rating came as a shock to many and gave investors another reason to sell stocks over the past few weeks. As noted in the The New York Times several weeks ago, the universe of companies whose long-term debt receives the top rating has been shrinking for years.
Thirty years ago, over 60 companies had AAA ratings, but that number had dropped to 15 by the year 2000. Some companies dropped off the list when they were acquired by other companies, while the financial crisis knocked Pfizer (PFE), Berkshire Hathaway (BRK-B), and General Electric (GE) off the list.
The graphic below from The New York Times shows the long-term debt ratings of S&P 500 companies and shows that there are now just four U.S. companies that still have the top rating. Only three companies have AA+ ratings, while the largest concentration of companies are in the BBB class.
Hint: Don't leave yourself vulnerable to an eventual market turnaround.
By Don Dion, TheStreet
Gold has been thrust into the spotlight during recent weeks of economic turmoil. With prices topping $1,900 per ounce, no wonder investors are clamoring for exposure.
Gold is not the only precious metal that has benefited from market uncertainty. Investors have also been turning to silver for safety. As a result, silver-backed ETFs have powered higher. The popular and closely watched iShares Silver Trust (SLV) recently enjoyed seven consecutive days of upward action.
Given the excitement surrounding gold and silver, it may be tempting to increase exposure to any and all precious metals. That, however, is likely not the most ideal investing strategy for people looking to maintain a stable, long-term allocation.
With staples like soda, chocolate and toothpaste seeing new strength in emerging markets, these funds have shown remarkable resilience this year.
By Stan Luxenberg, TheStreet
Through all the market turmoil of recent months, some consumer funds have stayed in the black. While the S&P 500 ($INX) has lost 9.5% this year, Vanguard Consumer Staples (VCSAX) has returned 2.4%, while Rydex Consumer Products (RYCIX) has gained 4.1%, according to Morningstar.
The resilience of consumer funds is not surprising. Consumer stocks include companies that sell things customers buy constantly, such as food, beverages tobacco, and beauty products. The group includes rock-solid blue chips such as Coca-Cola (KO), Procter & Gamble (PG) and Kraft Foods (KFT). Such stocks generate stable cash flows year after year.
Consumer stocks may seem unexciting in bull markets, but they can shine in downturns. This year many consumer stocks have done particularly well because companies are recording strong sales gains in emerging markets.
Global currencies are losing value, miners aren't finding much new gold, and the Fed has no good news.
The race to debase. That's what's fueling gold right now. The desire of almost all countries in the world -- from Japan to Switzerland, from all of Europe to the U.S. -- to get their currencies down in order to export their way out of the worldwide economic slowdown.
When everyone believes in a weak currency, you need a strong currency, and the strongest currency is gold.
I have liked gold for years and years, mostly as a hedge to the chaos and a belief that it is way too hated as an asset class. I base that view on the notion that gold represents about 1.55% of the world’s portfolios, down from about 5% historically.
That's only one reason to buy, though. We have also seen emerging middle classes around the world purchase gold as a way of passing on wealth or showing wealth, as is the case in the upcoming Indian wedding season. We see wealthier central banks buying gold in order to keep a store of assets that can't be debased by governments.
The company cut its plant budget at its London heaquarters, roiling a workforce already hit by hard times.
Yes, the friendly office plant. The kind that studies show boosts morale, especially in hard times. And times are tough for Goldman. The chief executive just hired his own defense attorney. The company is not-so-affectionately called the great vampire squid. Its role in the 2008 financial crisis is still being investigated.
Investors are too hopeful about finding bargain deals. That's not a good sign of a market bottom.
Once the symbol of innovation, the company is being dismantled by its high-pedigreed board and the CEO of the hour.
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Growth came in below expectations, but that's just evidence of how far the economy has come.
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[BRIEFING.COM] The S&P 500 (-0.7%) has slid to a new session low with dip-buyers showing reluctance to step in amid broad weakness that has only spared two countercyclical sectors-consumer staples (+0.8%) and utilities (+0.3%).
Meanwhile, all six cyclical groups hover in the red with top-weighted technology (-0.8%), financials (-1.2%), and energy (-1.3%) exerting significant pressure. The industrial sector (-0.7%) trades not far behind the broader market, but that has masked the ... More
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