Indexes might not be in correction territory, but they're getting closer. Now's the time to consider what moves to make.
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Netflix shares plunge after the online movie rental company loses more customers that it expected. 3M's profit falls short of estimates.
By Andrea Tse, TheStreet
Updated at 8:52 a.m.
Netflix (NFLX) shares were plummeting 33% to $79.20 Tuesday after the online movie rental company said it lost more customers than expected in the third quarter. Netflix said its subscribers would likely shrink in its current quarter, and predicted a loss in the first quarter of 2012. The company expects earnings of 36 cents to 70 cents a share for the fourth quarter, less than the average estimate of $1.08 of analysts polled by Thomson Reuters. JPMorgan (JPM) cut its rating on the stock to “neutral” from “overweight.”
Products maker 3M (MMM) said its third-quarter profit fell 1% year-over-year to $1.52 a share. Analysts, on average, were expecting earnings of $1.61 a share. The company expects full-year earnings in the range of $5.85 to $5.95, down from the previous outlook of $6.10 to $6.25. Shares were tumbling 5.1% to $78.
When you are blinded by your agenda, you risk being blind to opportunity.
Ideology is a killer in this business. Ideology meaning that there's an agenda behind what people are saying, an agenda that might be keeping you from making money.
Take Europe. How many times have you heard that Europe is going to take us all down? There's ideology behind that statement. The ideology is that the social democrats are going to wreck the world and that we can't afford to have a European welfare state.
After trading above $300 in July, shares have tanked to near $75 on continued subscriber woes.
By Jeff Reeves, InvestorPlace.com
After trading at more than $300 in July, Netflix (NFLX)was hovering around $77 a share Tuesday. It's all because of an earnings report after the bell Monday that showed customers left in droves and revenue missed forecasts by a mile.
The culprit is obvious: the ill-advised Qwikster scheme that aimed to split Netflix's streaming services and DVD delivery into two operations instead of a one-stop website. Qwikster was killed before it became a reality, but the damage remains to the once-loyal customer base of Netflix.
The company raised its guidance on strong earnings, showing confidence about the global economy next year.
Caterpillar earnings show that global growth is still intact.
After missing Wall Street expectations last quarter, Caterpillar (CAT) reported a third quarter Monday that bulldozed past estimates.
The Illinois-based maker of mining and earth-moving equipment also raised its full year guidance, sending shares up 5% to close at $91.77.
The company lost more customers than expected after it announced pricing changes and a plan to split operations.
The number came in Monday, and it was big: 800,000.
That's how many subscribers Netflix (NFLX) lost in three months. And that's a big reason its shares were plummeting Tuesday even though the company posted a pretty decent quarter.
Breaking down a broken-down metric.
By Joe Magyer
Ah, the PEG ratio. An approach to valuation celebrated by lovers of growth stocks, including some at the Fool, the PEG ratio is typically defined as a company's trailing P/E ratio divided by analysts' five-year estimates of earnings growth. The ratio has won over many fans because:
- The inputs can be quickly and readily found on nearly any financial site.
- It is relatively intuitive.
- It doesn't require any complex math.
Conventional wisdom states that if a company's P/E ratio is roughly on par with its growth rate, its stock is about fairly valued. If a company's growth rate is higher than its P/E ratio, the stock would appear to be undervalued, and vice-versa.
An increase in mergers could be a good sign for the markets in the months to come.
"Merger Monday" appears to be in full effect again.
After a period of quiet in capital markets activity, there were a few mergers announced Monday, which could be a sign that managers are seeing low valuations in the stock market as an opportunity to add businesses at cheap prices. Call it the "Warren Buffett" line of thinking.
Here are some of the most interesting parts from the book, which went on sale Monday.
Amazon (AMZN) says the book could very likely be its top-selling of the year. People are eagerly reading it, looking for insight and inspiration from a man who didn't reveal much publicly about himself or his life.
Some Wall Street economists say a congressional deficit committee is headed for failure, making a rating cut more likely.
That's what economists at Bank of America Merrill Lynch say in a recent report. And political squabbling will be very much to blame.
The problem lies with the congressional supercommittee charged with coming up with ways to reduce the deficit. The committee is turning out to be anything but super. Members spent most of September in a standoff, The New York Times reports.
This steelmaker trades at just 5.5 times earnings and yields nearly 4%.
The best time to bet on steel is usually at the point of maximum pessimism. I don't know if we're there yet, but it says a lot that ArcelorMittal (MT) recently sank even lower than the depths of the March 2009 bottom.
That spells opportunity, because the company is in much better shape than it was during those dark days.
Some leading tech shares may have gone too far too fast, while others are showing signs of continued upside.
By Tom Aspray, MoneyShow.com
In a recent post, I discussed the most oversold Dow stocks, which focused on the results of one of the scans that I run each weekend.
It is based on Starc band analysis, as I have found that it is important to know which stocks or ETFs are closest to their monthly and weekly Starc+ or Starc- bands. When a security is close to its monthly Starc- band, it indicates that it is already oversold. Statistically, this makes it more likely that the security will stabilize or rebound rather than continue to drop sharply.
The company's new RIO robotic system offers a less invasive approach.
It was almost exactly seven years ago that we ﬁrst discovered Intuitive Surgical (ISRG), which was just getting started with its da Vinci surgical robot, which offered less invasive surgeries.
Now along comes Mako Surgical (MAKO), which is loosely replicating Intuitive's success by offering its own robotic surgical solution. In fact, Intuitive's founder sits on Mako's board of directors.
A pair of companies will give investors a glimpse into the health of the economy as the holidays approach.
By Robert Holmes, TheStreet
Investors are stuck in a no man's land in which Credit Crisis 2.0 is capsizing a shaky global economy.
Every region of the world and asset class has its share of woes, from emerging markets to bonds, a condition that's unnerving American investors already wracked with worry over high unemployment.
Record revenue and a bright outlook from the industrial equipment giant are signs the global economy is still growing.
By Robert Holmes, TheStreet
Caterpillar's (CAT) third-quarter earnings report is a sign the global economy won't suffer another wave of recession.
Caterpillar, the world's largest maker of construction and mining equipment, reported a third-quarter profit of $1.71 a share Monday, an increase of 40% from a year earlier. Revenue jumped 41% to $15.7 billion, although the results include the company's acquisition of mining company Bucyrus International. Excluding that, revenue of $14.6 billion was an all-time record.
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- June gold traded in positive territory for most of today's pit session. Prices advanced as high as $1307.10 per ounce and dipped to a session low of $1297.90 per ounce in mid-morning action. The yellow metal eventually settled with a 0.3% gain at $1303.40 per ounce.
- May silver rose to a session high of $19.81 per ounce shortly after floor trade opened. It then chopped around near the $19.60 per ounce level and settled with a 0.8% gain at $19.64 per ... More
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