The Dow has run up to -- and been turned away from -- 16,000 twice before.
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The tech retailer may face hurdles gaining approval for a store in New York City's historic Grand Central Terminal.
By Olivia Oran, TheStreet
Rumors are circulating that Apple (AAPL) may launch its biggest retail store in New York City's Grand Central Terminal. If true, the move into one of the city's most historical fixtures could draw the iPhone maker into a complicated and cumbersome approval process.
The Cupertino, Calif. consumer electronics maker is aiming to make the transportation hub home to its biggest retail location, according to reports. Apple's largest store today is its 16,300 square feet spot in London's Covent Garden.
Apple could not be reached for comment about its retail expansion plans.
This week's dumbest business moves include Gupta's insider trading case, Weatherford's big accounting error and Consumer Reports' Chevy Volt slight.
By TheStreet Staff, TheStreet
Here is this week's roundup of the dumbest actions on Wall Street.
5. Gupta trips on tips
Typically insider trading cases involve lower level Wall Street soldiers that stumble into information that they realize can net them a quick pay day. They are also quickly caught, since the usually call their family broker to buy millions of shares of a no name stock just before it skyrockets.
There's enough reserve capacity to offset any major supply disruptions, and OPEC's lack of urgency may be the single biggest sign that the crisis may soon pass.
Where's the emergency OPEC meeting? Where's the meeting of the producing countries that will set everything right and bring down the oil prices to levels that are not boom-or-bust like the last time in 2008, when the price of oil was cut in half just a few months after hitting $147? Why is the organization waiting until its regularly scheduled June meeting to talk about this emergency?
Because, believe it or not, there is no emergency. OPEC's calm because the Saudis have more than enough spare capacity -- double what it had three years ago during the last shock. That's right, double, according to JPMorgan's just-released The Eye of the Market bulletin, the most cogent piece of research to hit my desk each week.
Plus there are more than 4 billion barrels of spare capacity in strategic petroleum reserves worldwide, including in the United States. That oil can and should be released if things get out of control. In fact, the U.S. should be unleashing it now to offset the inflation it causes rather than raising rates which could break the entire economy ... in large part because of oil prices.
The wait is over. After years of ultra-cheap money, short term interest rates are set to rise as central banks bring the fight to inflation. That's damaging the dollar and sending investors back into emerging market stocks.
For months, I've been warning of the risks of inflation and higher interest rates and how money is about to get more expensive. Be sure to check out my Jan. 19 column, "Our next economic worry: Inflation."
Now, with the situation in North Africa and the Middle East focusing attention on fast rising food and fuel prices, and signs that these pressures are feeding into so-called "core" measures of inflation, central banks are preparing to take action. The European Central Bank looks ready to move first. And it could move as soon as next month according to Capital Economics chief European economist Jonathan Loynes.
A plethora of emerging market economies including China, Brazil, and Indonesia have been on the rate hike campaign for awhile. But this makes the beginning of the tightening cycle for the major developed economies. And as the world's main sources of capital, that has far reaching implications for the global economy, the housing market, the financial markets, and consumer confidence.
After a 25% haircut, it's time to take a close look at this energy saver.
The "demand response" industry is growing fast because it offers a win-win-win proposition for customers, utilities, and the companies providing the service. Fool analyst Dan Dzombak is buying EnerNOC, which he says has suffered an unfair beat-down.
Rex Moore, Motley Fool Top Stocks Editor
EnerNOC (ENOC) is one of the market leaders of the demand response industry (along with Comverge (COMV)). Basically, EnerNOC uses technology to monitor, reduce, and coordinate its customers' (large factories, department stores, warehouses, malls, etc.) electricity usage. During times of high electricity demand, EnerNOC can then reduce its customers' power usage, which saves utilities from having to power up extra plants at high costs. For doing this, EnerNOC gets paid by utility companies and grid operators for freeing up electricity. EnerNOC passes along a portion of that cash to its customers, a win for both customers and utilities.
These small stocks might be risky, but the potential rewards are big.
By James Dlugosch, Stockpickr
I love small-cap stocks, in particular those that trade for less than $5 a share. In my long history of publishing stock recommendations, I can honestly say that the biggest money made over the years came from stocks that were trading for less than $5. While I’ve had many large-cap winners, the dollars made were not the same.
To be fair, it is also true that some of the biggest losers also were smaller stocks. They are certainly risky, but given the potential reward, the risk can be worth it.
A good friend of mine who has been a subscriber of many of my prior publications used to hound me for my top picks under $5. He liked the idea that I could recommend Apple (AAPL), but he didn't want to hear about it. He wanted the small stock that nobody else was talking about.
By virtue of its success, Apple can be a lightning rod for critics. But the best-run company with the best products doesn't need to follow the same rules as everyone else.
The caller was angry. He wanted to know how Apple(AAPL) could sit on that $60 billion cash war chest and not return that to shareholders. He wanted to know why Apple hasn't split the stock. He wanted to know why these injustices occur.
I thought about it for a moment, knowing that I favor dividends and returning capital to the shareholders. I don't have much of a love for splits, but I know -- rightly or wrongly -- that such an event would attract a lot of new buyers to the stock.
But then I just let loose. When you perform as well as Apple does; when you invent a whole new ecosystem; when you are the world's best engineering, designing, manufacturing and retailing name; when you have changed as many games as they have and when you have made as much money for shareholders as they have, then you know what? You don't have to play by the rules that others do.
The cash flows coming into Energy Transfer Partners look to be ramping up this year.
Why this tobacco king is worth buying.
Significant barriers to entry, absurdly high margins, and name recognition even greater than Charlie Sheen. That's Philip Morris International, and that's part of the reason Fool analyst Dan Dzombak is buying shares for his Rising Stars portfolio.
Rex Moore, Motley Fool Top Stocks Editor
Philip Morris International (PM) is unique in that it is an American company that earns 100% of its revenue from outside the U.S. It sells cigarettes around the world -- with 40% of its sales coming from the European Union, 24% from EMEA (Eastern Europe, the Middle East, and Africa), 22% from Asia, and 12% from Latin America and Canada. Its brands have been ingrained in people's minds through years of advertising, allowing the company to charge more for its products. Combined with an addictive product, this brand strength means Philip Morris will be a market leader for years to come.
The legendary investor sits down with CNBC for hours to share his opinions about the financial world.
That's a no-brainer for Warren Buffett, who likes investments that produce and deliver returns. With gold, he told CNBC today, all you can do is hold on to it and hope that people become more afraid.
All the gold in the world is worth about $7 trillion, he said on CNBC. You can take that same chunk of change and buy seven Exxon Mobils (XOM) and still have trillions left in "walking-around money," he said. "The problem with commodities is you're betting on what someone will pay for them in six months," he added.
We have lots of videos of Buffett speaking about his investment strategy, his likes and dislikes, and about how he just lost an acquisition to another suitor. The videos will start playing below -- or, you can click here to specifically catch Buffett's take on gold vs. Exxon Mobil.
The social networking giant's share of the display advertising market is expected to expand to 21.6% this year, compared with 16.4% for Yahoo.
By Olivia Oran, TheStreet
Facebook's share of the $10.1 billion online display advertising sector -- comprised of graphic ads like banners, interactive media and video -- is expected to increase to 21.6% this year from 13.6% in 2010, eMarketer said. This means Facebook's ad revenue could top $2.2 billion this year.
Yahoo, which has traditionally been considered the leader in display ads, is expected to see its share rise slightly to 16.4% this year from 16.1% in 2010.
Starbucks spurned Kraft and wants a new partner in the single-serve scene, but Green Mountain and its consumers may be out of its league.
By Jason Notte, TheStreet
Starbucks (SBUX) just broke up with its longtime supermarket distributor Kraft (KFT) and seems to have its eye on Green Mountain Coffee Roasters (GMCR) for a steamy single-cup partnership. But who wants who more?
"Starbucks needs a single-serve solution, and there's no question they're going to have to have one," says Scott Van Winkle, consumer analyst for Canaccord Genuity. "Green Mountain doesn't need Starbucks."
How could he be so optimistic? Doesn't the guy read the papers?
Warren Buffett must be an idiot, isn't he? I mean think about it. Think about what this clown is saying and doing. Think.
First, he likes investing in America. The stooge! Doesn't he realize we don't know how to make anything, and we have a dysfunctional government with a dysfunctional president? Doesn't he read the papers?
Second, he wants to buy something big right here, right now? Who is he -- Moe? Larry? Curly? Dumb? Dumber? Petey? I mean someone buy the old guy a copy of The Wall Street Journal. He’ll see that everything is overvalued and going lower. How can he want to buy anything when we know everything is hopelessly, radically overvalued? Like maybe 10%, 20%, 30% overvalued? You name it.
Plus, everything is going higher: costs, taxes, labor, materials, entitlements. Shouldn't he be selling and shorting? Who is he kidding? Does he think he's cheerleader-in-chief? Is that the game he's playing? He just likes the TV. Would walk a mile for a camera.
American shares succumb to selling pressure as it becomes clear the U.S. economy isn't immune to rising food and fuel prices.
So, this is how it ends. The powerful market uptrend that has seen the S&P 500 gain nearly 30% since September is collapsing under the weight of inflation concerns, a slowdown in Chinese economic growth, and political turmoil in North Africa and the Middle East.
There are new concerns that rising food and fuel prices -- both here at home and overseas -- will translate into reduced earnings growth and smaller profit margins. And of course, there is the risk that sticker shock will damage still-fragile consumer confidence. I've written frequently about these topics over the last two months -- which you can check out on my article index here.
Everywhere I look, there is evidence that Wall Street traders don't consider this a temporary blip; instead, they are preparing for the worst.
At the rate things are going, the middle of 2011 could be the real crunch point for the year.
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These days, they are buying high and selling higher, and think their stock picks are protected by good fundamentals.
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[BRIEFING.COM] S&P futures vs fair value: +0.40. Nasdaq futures vs fair value: +4.70. The S&P 500 futures have climbed out of the red following today's better-than-expected retail sales report (+0.7% actual versus +0.6% Briefing.com consensus).
It was a sea of red across Asia as all of the major Asian bourses ended with losses. The weakness came as markets remain on edge over whether or not the U.S. Federal Reserve will begin to scale back its bond-buying program as early as ... More
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