Stocks have rallied 177%, and while calling a top is the easiest thing to do, it might not be the most accurate, Cramer says.
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As the market slides, the iPad maker is looking more attractive, prompting this safety-first researcher to add it to its 5-star-stock list.
By Jake Lynch, TheStreet
Morningstar covers more than 1,700 stocks, and only 45 receive five-star rankings. That number has increased quite a bit in the past few weeks as the equity market has slid. Morningstar says Apple, which is down to $315 from a 52-week high of $365, is now at an attractive discount price.
During the second quarter, Apple roughly doubled its operating income and boosted sales by 83%. Such growth is remarkable, especially considering the company already has a market value of $290 billion. IPhone revenue surged 126%, Mac revenue climbed 32%, iTunes revenue increased 23%, software sales stretched 17%, and peripherals sales advanced 23%. IPod sales declined 14%. The iPad has no year-over-year comparison, but it delivered $2.3 billion in quarterly sales. Put simply, business is booming.
In this market, investors want stocks that pay a reliable yield to cushion the blows of volatility.
What separates the winners from the losers in this market? Often it is one simple concept: a viable dividend that is unlikely to be cut. Specifically, a dividend that has a nice yield after taxes, one that will cushion it from the vicissitudes of daily market swings.
It's your best defense against forces like a troubled Europe, a tightening China and a sinking Japan.
How powerful is it? All you need to do is examine some of the weakest sectors to know. Let's take the case of defense stocks. Here's a group that's being butchered by the Department of Defense. We all know that spending is coming down. But the stocks have been huge winners this year, and much of that, I believe, is yield protection.
Lockheed Martin (LMT) has been in the cross hairs of the U.S. government cutbacks for months. Has the stock gone down? It is up an astounding 15% for the year, in large part, I believe, because it yields 3.7% and, of course, throughout that rally had a much higher yield.
Callifornia regulators stop automatic delivery of the white pages. Are the Yellow Pages next?
Verizon will still hand out the Yellow Pages as well as government white pages and business listings. But just cutting the residential listings will save about 1,870 tons of material, reports the Matter Network.
California isn't alone here. Other states are granting similar requests by phone companies, who don't like the books because they're unprofitable and generally advertising-free, USA Today reports. People can pretty much get the information they need on the Internet now.
There is plenty of political rhetoric surrounding a second rescue package.
The share price has fallen below key technical support levels, yet some analysts say now is the time to buy.
Why is Apple struggling? Analysts have a median price target of $450 on the stock, with 50 urging a "strong buy" or "buy." Investors apparently disagree.
Apple is trading well below its 50-day moving average of $338.98 and below its 200-day moving average of $325.91. Its market value has fallen below $300 billion -- back to where it was at the beginning of the year.
The valuations of these companies argue against it.
By Jordan DiPietro
A few weeks ago, a friend asked what I thought about the future of a Facebook IPO. My short response was that retail investors would most likely get in the way after the smart money made its way on to the table, so it was hard to recommend a buy.
His response: "Buy, buy, buy!"
Here comes another bubble?
When investors start getting so involved in story stocks and ideas that they ignore fundamentals and valuations, it's very easy for a bubble to form.
Recently there's been an onslaught of tech companies coming to the market or filing with the Securities and Exchange Commission for upcoming IPOs, and the hype around these companies has become quite phenomenal.
From cereal to soda, food marketers are reviving the past to stir shoppers' emotions.
That's the hope of food companies, at least. Companies such as Pepsi (PEP) and General Mills (GIS) have jumped on the retro food bandwagon, dusting off old designs in an effort to take shoppers down memory lane.
Check out the following video for good examples of how everything old is new again on supermarket shelves. For some products, this trend is becoming a permanent look.
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Companies and the economy are healthy, and at least one fund manager says the market is way oversold.
By Frank Byrt, TheStreet
It's easy for investors to think the sky is falling, given the drumbeat of dour economic news in recent weeks.
That's because much of the bad economic news has already been factored in to stock prices. Meanwhile, U.S. corporations' fundamentals remain solid after a 19.4% jump in S&P 500 earnings in the first quarter. Besides, investors have few places to go other than equities as fixed-income returns dwindle.
That sounds like a value-oriented, stock-pickers' paradise. So why the Chicken Little reactions?
These classes have badly lagged the broad market this year, and their relative performance predicts more underperformance may lie ahead.
Why all the gloom and doom? US businesses are enjoying massive profit margins and robust sales.
By Chris Stuart, TheStreet
That's what headlines from the past couple of weeks are saying. For example:
"Shiller Sees 'Substantial' Probability of Recession"
"Nearly Half in US Think New Recession Is Coming"
"We're on the Verge of a Great, Great Depression"
What's everyone so worried about? Jobs, housing, consumer confidence, Greece -- the list goes on. But the pundits are ignoring one big fact: Corporate America is alive and well.
Keep an eye on funds tracking transportation, the Swiss franc, emerging markets and technology.
By Don Dion, TheStreet
Here are five ETFs to watch this week.
Many investors turn to FedEx's reports for a read on the global economy. A strong report and outlook would indicate that consumers and businesses are becoming more confident.
Investors are way too skittish. Stay long this week
It was not easy by any means, but the market managed to finish last week with a gain. The fractional increase in value ended a six-week losing streak.
The gains were a bit of a mirage.
The major indexes may have closed higher, but many stocks traded lower. Technology stocks in particular were hit hard. Losses in that very important industry suggest that investors are still skeptical about the economy and future corporate profits.
Much of the weakness can be attributed to worries about the debt crisis in Greece. There is very real fear that a default will create a chain-reaction collapse in global finances. Until that fear subsides, stocks will struggle.
I will never sell stocks based on fear. As such, the ETF to buy this week is the iShares S&P North America Technology and Multimedia Fund (IGN).
The charts are signaling that the only way to go from here may be down. Oil shares are the most vulnerable.
Sometimes you just have to own how really bad this market is. When I went through the S&P 500 ($INX) charts this morning with an eye toward the collapse of Greece and the new battleground of Italy that's developing, I couldn't help but notice two things:
2. The charts are screaming that we are headed into a second recession that's going to be a real doozy.
I want to write from the outset that I don't see things that way. I see many companies reiterating strength, and I see many companies that haven't seen strength about to get some, notably the companies that buy commodities.
But the stocks are signaling total calamity, and it is important to know that.
Sanford Bernstein downgrades Research In Motion. GE reaches a labor agreement. Boeing gets a 6-jet order from Qatar Airways.
By Andrea Tse, TheStreet
Updated at 9:20 a.m. ET
BlackBerry maker Research In Motion (RIMM) has been cut to "underperform" from "market perform" by Sanford Bernstein. Shares were falling 1.8% to $27.25.
Conglomerate General Electric (GE) and its two largest unions have reached a tentative four-year labor deal that affects more than 15,000 GE workers. GE shares were down 0.7% to $18.37.
Qatar Airways said it will order six Boeing (BA) 777 jets, with a total value of $1.7 billion. Boeing heads into the Paris Air Show on Monday with more orders this year than rival Airbus.
Indicators are mixed, and events next week could tip the scales to the bears or bulls, but sideways trading in the short term seems likely to be followed by a solid rebound.
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Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
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[BRIEFING.COM] Recent action saw the S&P 500 (-0.3%) regain about eight points from its session low thanks, in part, to the relative strength of the three top weighted sectors. Financials (-0.2%), health care (+0.1%), and technology (-0.1%) trade ahead of the broader market and their relative strength is noteworthy considering the trio accounts for more than 46.0% of the entire market.
Meanwhile, consumer discretionary (-0.5%), industrials (-0.7%), and materials (-0.6%) continue ... More
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