5 reasons the market is seeing red
5 reasons the market is seeing red

Geopolitical crises are taking a toll on stocks as we head into the seasonally weak month of August.


Growth came in below expectations, but that's just evidence of how far the economy has come.

By MSN Money Partner 12 minutes ago
Image: Office workers © ColorBlind Images/Blend Images/Corbis​By Chris Matthews, Fortune.com

What a difference a couple years can make.

Friday's jobs report was a slight miss, with the Labor Department announcing that the U.S. economy added 209,000 jobs in July and the unemployment rate ticking up to 6.2 percent. 

But if this report is what constitutes disappointing, it only goes to show how far the labor market has come in the past two years.

Back in late 2012, when the Federal Reserve was just launching its third, open-ended bond buying program (known as quantitative easing), Chicago Fed President Charles Evans argued that the Fed should keep its foot on the monetary policy pedal until U.S. employers were adding 200,000 jobs per month on a regular basis -- at least for two straight quarters. 


Forget all the complaining about how the company is destroying shareholder value. CEO Jeff Bezos is a unique visionary.

By MSN Money Partner 18 minutes ago
Credit: © Tim Shaffer/Reuters
Caption: A worker loads a shipment of boxes at an Amazon.com warehouse facilityBy Michael Brush, MarketWatch

An all-time classic market theme is investing in public companies run by their founders, because such stocks regularly outperform.

But this approach also creates a market dynamic that can set up great contrarian plays. That's true of Amazon.com (AMZN) right now.

Here's the dynamic I am talking about. Founders don't mind sacrificing profits near-term to invest in long-term growth. Wall Street, meanwhile, only thinks short term.

The upshot: These companies are prone to coming up short on profits, which hammers their stocks -- giving you a chance to buy a great company at a discount.

That's the set up at Amazon, following the stock's recent downturn on surprisingly weak guidance for the third quarter when -- you guessed it -- heavy investment will eat into profit margins.

Tags: AMZN

The cash and debt deal would combine the two largest manufacturers of lottery and gambling equipment.

By TheStreet.com Staff 32 minutes ago

A Bally Technologies' slot machine © Bobby Yip/ReutersBy Lou Whiteman, The Deal

Scientific Games (SGMS) said Friday that it would acquire rival Bally Technologies (BYI) in a $5.07 billion cash and assumed debt deal that would combine two large manufacturers of lottery and gambling equipment.

Terms of the deal call for New York-based Scientific Games to pay $83.30 in cash for Bally, a premium of 38 percent to the company's Thursday close, for total equity consideration of $3.27 billion. Scientific Games will also assume and refinance about $1.8 billion in existing Bally net debt.

Las Vegas-based Bally is one of the most celebrated names in gambling equipment, a maker of electronic and table games, systems and technologies for casinos and other users. Scientific Games, maker of lottery games, sports betting technology and social gaming products, said the deal would expand its portfolio of products to include a leading casino management systems and table products including automatic shufflers, proprietary games and electronic table systems.


The tame wage and inflation numbers will take some pressure off Janet Yellen and her colleagues.

By MSN Money Partner 40 minutes ago
Construction workers © Seth Joel, PhotographerBy Jon Hilsenrath, The Wall Street Journal

Friday's employment and income reports pointed to steady U.S. job growth and firming but low inflation -- trends that are likely to keep the Federal Reserve on course to end its bond-purchase program in October and remain patient before raising short-term interest rates.

The July jobs data weren't as robust as in June, but included lots of encouraging news about the labor market's progress. 

Payroll growth has averaged 244,000 over the past six months, the best performance over that stretch since early 2006. More impressively there have been steady gains of six straight months in excess of 200,000 jobs added, something that hasn't happened since 1997.

The unemployment rate went up to 6.2 percent from 6.1 percent, but its improvement from 7.3 percent a year ago is nonetheless striking. Moreover, an underlying detail of the government's July survey of households was encouraging. 


Investors are anxious to see if hiring can maintain its strong pace in the second half of the year.

By MSN Money Partner 20 hours ago
By Ben Leubsdorf, The Wall Street Journal

The first half of 2014 saw the U.S. economy's strongest stretch of hiring since early 2006

The jobless rate fell to 6.1 percent in June from 7.5 percent a year earlier, its fastest one-year decline since October 1984, and nonfarm employers added a seasonally adjusted 288,000 jobs.

Can hiring keep up its strong pace in the second half of the year? We'll get our first clue Friday at 8:30 a.m. EDT, when the Labor Department releases its jobs report for July

Economists surveyed by The Wall Street Journal expect payrolls to rise by 230,000 and the unemployment rate to remain at 6.1 percent.

Here are a few things to watch:


Andrew Mason's new Detour could be one of the most-watched comeback attempts in recent Silicon Valley history.

By MSN Money Partner 21 hours ago
Credit: Johannes Simon/Getty Images
Caption: Andrew Mason, CEO of GrouponBy Brad Stone, Businessweek

Andrew Mason (pictured) is walking with a reporter amid the seagulls on San Francisco's Fisherman's Wharf, using his iPhone to play an audio walking tour. 

As he approaches the giant hoists with which local anglers move their daily catch to shore, the voice of a local fisherman named Candy pipes up on the recording to describe the scene ahead: "If you see any boats unloading, look for sea lions hanging nearby, waiting for the fish receivers to throw them scraps." 

The recording is one of the offerings from Mason's latest startup, Detour, which he is trying to build into a central repository for a new kind of GPS-based neighborhood walking tour. 


The high-definition camera maker gives its first earnings report as a public company Thursday afternoon.

By MSN Money Partner 24 hours ago
Credit: © Jeffrey Blackler/Alamy
Caption: GoPro Hero 3 & wearable camera on headbandBy Angela Johnson, MarketWatch

High-definition camera maker GoPro (GPRO) is scheduled to report second-quarter earnings after the bell on Thursday, its first such report since it went public in June.

This is what investors can expect:

Earnings: GoPro is expected to report second-quarter earnings of 7 cents per share, according to analysts surveyed by FactSet.

Revenue: Revenue is expected to come in at $238 million.

GoPro had first-quarter revenue of $235.7 million, according to a June 26 filing with the Securities and Exchange Commission. Revenue for all of 2013 came to $986 million, the filing showed. Net income for the first quarter came to 11.0 million, after $60.6 million for all of 2013.


Geopolitical crises are taking a toll on stocks as we head into the seasonally weak month of August.

By MSN Money Partner Thu 12:12 PM
A trader works on the floor of the New York Stock Exchange minutes after a Federal Reserve announcement on January 29, 2014 in New York City
© Spencer Platt/Getty ImagesBy Bob Pisani, CNBC

Stocks are sharply lower, with European stocks trading ugly right from the start. Germany is down more than 1 percent, and is lodged at the lowest levels in nearly three months.

Several factors are moving our markets, including:

1) The rhetoric in Ukraine is getting downright vitriolic. The Ukraine Prime Minister, Arseniy Yatsenyuk, said Russia was seeking to "revise the outcomes" of World War II by seizing the Crimean peninsula and fomenting war.

We are also seeing some global companies like BP (BP) talking about long-term impact from the Ukraine crisis.


What does the country have to do with the price-to-earnings ratio of the S&P industrials? From here on in, everything.

By Jim Cramer Thu 11:51 AM

A armored vehicle manned by pro Russian rebels leaves Donetsk, Ukraine © Hollandse Hoogte/CorbisIt must have just dawned on people after work last night that Russia is bad news for the market.

I guess investors needed to hear it from companies as diverse as SiemensAdidas, and Shell (RDS.A) all at once to drive the point home. Yes, Russia, Ukraine, Russian impact on Europe, strong dollar -- it's all coming together in one ugly morning.

There's a grudging recognition that not only are the sanctions not working but they are making Putin dig in his heels. Digging in his heels means he's going to cut the natural gas spigot to Europe when it gets cold. I think that's how a company like Siemens could withhold an outlook for 2015. I think it's how Shell last night said it could be a game changer. Adidas didn't even have to wait until winter to lower the boom. It did so now.


3 stocks will be in the spotlight Thursday as investors try to make sense of the numbers from the sector.

By Benzinga Wed 7:33 PM

Image: Aerial view of Houston neighborhood © Ocean/Corbis/CorbisBy Nelson Hem

Leading homebuilders Beazer Homes USA (BZH), Ryland Group (RYL) and Standard Pacific (SPF) will be taking their turns in the earnings spotlight Thursday.

D.R. Horton (DHI), Meritage Homes (MTH) and PulteGroup (PHM) posted mixed results last week, just as the U.S. Department of Commerce announced that new-home sales plunged in June. That made investors nervous about the housing recovery.

Beazer Homes USA

Analysts on average predict that this Atlanta-based builder will report that its revenue for the fiscal third quarter rose more than 14 percent year-over-year to $360.13 million. Earnings of $0.22 per share are also in the consensus forecast. That would compare to a reported net loss of $0.23 per share in the comparable period of last year.


Why are stronger numbers considered bad news? Investors are worried about the impact on inflation and interest rates.

By InvestorPlace Wed 3:54 PM

Credit: © Image Source/Corbis
Caption: Bull and Bear MarketsBy Anthony Mirhaydari

Stocks were chopping around the unchanged line on Wednesday in response to some stronger-than-expected economic reports, including the government's first estimate of second-quarter GDP growth.

The Dow Jones Industrial Average ($INDU) tested below its 50-day moving average for the first time since May -- a bout of volatility investors haven't seen for a long time.

Normally, good news would be considered good news. But these days, with the market so dependent upon cheap-money stimulus from the Federal Reserve, any indication of a strengthening economy (and rising inflationary threats) is considered bad news since it brings forward the likely timing of the first short-term interest rate hike.

Indeed, the policy hawks are already making their reservations known with Dallas Fed president Richard Fisher letting loose with a Wall Street Journal op-ed on Tuesday titled "The danger of too loose, too long."

Tags: UUP

The glory days are over for big-box retailers as consumers search for more convenience, Goldman Sachs analysts say.

By MSN Money Partner Wed 3:12 PM
Walmart plastic shopping bags in shopping cart
© ParryGrab/AlamyBy Ashley Lutz, Business Insider

The heyday of big-box discount retailers is over. 

Consumers are becoming less interested in retailers like Wal-Mart (WMT) and Target (TGT), according to a recent note by Goldman Sachs. 

Instead, "consumers appear more focused on some combination of value and convenience," the analysts write. 

The advent of online retailers like Amazon.com (AMZN) has also contributed to the problems at Wal-Mart and Target, according to the note. Consumers are less likely to make a trip to the stores when they could get free delivery online. 

Wal-Mart's sales have declined for five straight quarters, leading to shakeups at the executive level.


The stakes are high heading into the company's earnings report Thursday.

By InvestorPlace Wed 2:41 PM

LinkedIn Corp. headquarters in Mountain View, Calif. on April 25, 2013 (© David Paul Morris/Bloomberg via Getty Images)By Jeff Reeves

LinkedIn (LNKD) has had a rough 12 months or so. The stock is down roughly 25 percent from summer 2013 highs, and is deeply in the red so far in 2014.

This would be bad enough for the stock, but the fact the market itself is rallying nicely at the same time only adds insult to injury.

It's also worth noting that LinkedIn is just one of many momentum plays in the Internet space that have run out of gas in 2014, such as Yelp (YELP) and Pandora (P).

That means stakes are high for LinkedIn earnings, due out Thursday after the bell, as investors look either to validate the downtrend or see a turnaround in the stock.

Here's what to look for in LinkedIn earnings:


The global risk level is high and the markets are at full valuation, one investor says. 'I think it is a very good time to be cautious.'

By MSN Money Partner Wed 2:26 PM
Image: Money © MedioImages/JupiterimagesBy Ben Eisen, MarketWatch

Dan Fuss hasn't been shy about playing in the riskier corners of the bond market during his 50-plus years in finance. But he's becoming increasingly cautious this year, reflecting growing concerns about the state of the credit markets.

Fuss' flagship Loomis Sayles Bond Fund (LSBDX) has put 27 percent of its $24.4 billion in assets under management in cash and reserves, such as short-term Treasurys, he said in an interview with MarketWatch this week. He joins a number of other big bond managers who have been prioritizing liquid holdings.

That decision reflects a mix of caution about geopolitical conflicts around the world that have so far gently pushed investors away from riskier debt securities. In the past month, Russia’s conflict with Ukraine has intensified, leading to harsher sanctions from Western nations. Violence has also erupted between Gaza and Israel.


A number of US mutual funds hold government bonds from the country, which is perilously close to default.

By MSN Money Partner Wed 2:00 PM
Credit: © Daniel Garcia/AFP/Getty Images

Caption: Members of the Granaderos presidential guard carry out the daily flag hoisting ceremony in front of the government house at Plaza de Mayo square in Buenos Aires, Argentina on July 30, 2014. Last-ditch talks aimed at averting Argentina's second default in 13 years were to resume Wednesday in New York, after Tuesday's marathon session failed to reach a deal.By Ben Eisen, MarketWatch

Hedge funds aren't the only investors with money on the line as Argentina scrambles to avoid a bond default.

A number of mutual funds, including funds run by Goldman Sachs (GS) and Fidelity Investments, have exposure to Argentina, which must reach a deal with a group of bond creditors by Wednesday, or face default for the second time in 13 years.

Argentina's Merval stock Index dropped 1 percent Monday as the deadline for a deal drew closer.

The sovereign bonds sold by Argentina are a high-risk, high-reward bet. If the South American nation irons out a solution with its creditors, the debt could increase rapidly in price, leading to a handsome payout. If a default occurs, these funds could get back just a fraction of their investments, if anything at all.



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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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