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.

VIDEO ON MSN MONEY

Several casino owners have upsides, but the value's not there

By InvestorPlace Sep 6, 2011 9:29AM

By Jonathan Berr, InvestorPlace Writer

   

When it comes to casino stocks, investors have not always had Lady Luck on their side — even in the red-hot gaming market of Macau.

 

Shares of Wynn Resorts (WYNN) have soared more than 46% this year because its operations in Macau are growing like gangbusters. The Macau magic, however, has not rubbed off on Las Vegas Sands (LVS), which has barely budged this year amid investors’ concerns about lawsuits alleging illegal activities in Macau, which the firm has denied. MGM Resorts (MGM), which recently took control of its Macau joint venture, has been hurt by concerns about its lackluster earnings. Its shares have slumped nearly 30%.

 

None of these stocks are a compelling value even though Macau gaming revenue was a record $3.1 billion in August, an increase of 57% year-over-year.

 

No one is disputing that things are bad across the pond, but the desire to take down everything here because of our link to Europe is overblown.

By Jim Cramer Sep 6, 2011 9:27AM

jim cramerthe streetWhen Europe catches cold, we die of pneumonia? That's how it looked Monday when we had the oft-quoted "Germany down 5%" conversations with people in the business.

 

I mean, if they are down 5, don't we have to be down at least 5? Aren't we that dependent on Europe? Wasn't that down 2%-3% Friday off the jobs report just the foreplay for European madness?

 

That's what all the macros think. They just relate one to another as if we are all related. But are we? Did you see what was still up big last week despite this link with Europe? Stocks like Kimberly-Clark (KMB) and Procter & Gamble (PG) and McDonald's (MCD)? Bristol-Myers (BMY)? Anything with a nice yield?

 

Doesn't matter.

 

But the big wins this year are what I am now calling "edge wins," companies on the edge of the decline that don't deserve to be in the decline at all -- and wouldn't be if there were no such thing as futures. Don't laugh. They didn't exist in the early 1980s when I was trading pretty aggressively, unless you think the Value Line futures are part of a vast conspiracy to take all stocks down or up off of "each other."

 

Even if you miss a major bottom in a stock or market, you can still buy in and enjoy most of the uptrend.

By MoneyShow.com Sep 5, 2011 12:50PM
By Tom Aspray, MoneyShow.com

One of my favorite chart patterns is the flag formation. These flags or triangles are most often a continuation pattern, which is an interruption in the dominant trend.

Often, one might miss a stock or ETF that is completing a major bottom or major top. If you understand and are able to identify continuation patterns, you will often be able to find a better risk/reward entry point and catch more of the major trend.

When the flag is formed as an interruption in a major uptrend, it is often referred to as a "bull flag." The formation of a flag formation during a downtrend is therefore known as a "bear flag." Let's look at some past and current examples.
 

This is going to be a long weekend as we wait for the markets to reopen, but there are some bright spots.

By MoneyShow.com Sep 2, 2011 10:31PM

By Tom Aspray, MoneyShow.com


Last week, the hopes that the economy was not really that bad were supported by some of the economic data (such as auto sales) turning out better than expected.


The tone changed Thursday, as stocks opened weak, then rebounded sharply as the ISM Purchasing manager’s report came in stronger than expected.


The rebound was short-lived. New concerns over Bank or America (BAC) and Goldman Sachs (GS) helped stocks to reverse to the downside. The very weak close suggested that the rebound from the August lows was likely over.


Then the dismal monthly jobs report hit stocks hard Friday, as stocks opened sharply lower and the major averages closed near the lows.


The rally was classic in technical terms, as the Spyder Trust (SPY) came very close to retracing 50% of the decline from the July highs. Most of the major averages traced out flag formations, which are normally seen as interruptions in the downward weekly trend. I will share some more specifics below.

The key question is whether the support zones derived from the recent rally will hold. If they do, we could see the formation of a short-term double bottom that would set the stage for a better rally.

 

A federal lawsuit filed Friday could kill chances of a comprehensive foreclosure fraud settlement.

By Jim J. Jubak Sep 2, 2011 5:55PM
Jim JubakBig U.S. banks led the U.S. stock market down Friday.

The driver here isn’t simply the prospect of slower economic growth represented by the lack of any job growth in August data released today -- although that certainly doesn’t help.

Bank stocks are reeling because the big U.S. mortgage lenders and mortgage packagers were anticipating a suit be filed by the Federal Housing Finance Agency, which represents Fannie Mae and Freddie Mac, seeking to force these financial companies to repurchase bad mortgages.

The agency did file a lawsuit late Friday, saying the banks sold bonds backed by mortgages that should not have been packaged into securities.
 

Forget pricey chairs. Nowadays, the hottest office item does away with the chair altogether.

By Kim Peterson Sep 2, 2011 4:59PM
Remember when pricey chairs like the Aeron were the must-have office items? Now, the chair itself is positively passé.

The latest status symbol for the office doesn't use a chair at all. It's the standing desk, and it's becoming a hot item in Silicon Valley. At Google (GOOG) and Facebook, workers have replaced the traditional setup with higher desks that you can use while standing or perched on a stool, The Wall Street Journal reports.

Even better? The treadmill desk. Facebook has set up some treadmill stations where people can walk while working on the computer. 

The Earnings Predictor likes the prospects of Manny, Moe & Jack

By Jamie Dlugosch Sep 2, 2011 3:54PM

There is a tremendous amount of noise in the market that can influence stock price. Ultimately, the value of a stock is based on the present value of future profits.

 

When a company reports earnings results, market participants receive a key piece of information that can be used to determine the price of a stock. For a brief moment in time after a company releases its operating performance, the market will adjust pricing based on how the numbers match up against current expectations.

In many cases stocks of companies reporting results will move significantly higher or lower.

 

Understanding how investors use earnings against Wall Street estimates creates a profitable trading opportunity. Using a few key variables combined with understanding how the market will react to new information can guide you how to trade a stock in advance of the news being reported.

 

Use the Earnings Predictor to help you identify winning trades. On Tuesday Pep Boys (PBY) reports earnings for the quarter ending July 31, 2011.

 

The holiday was created in honor of the American worker. But this year, there isn't much to celebrate.

By Kim Peterson Sep 2, 2011 3:30PM
Oh, the irony of celebrating Labor Day when unemployment is stuck at 9.1% and the country couldn't create any new jobs in August. Renaming it "Can't Get Labor Day" might be more appropriate this year.

Does anyone even remember why Labor Day exists? It dates back to 1894, when President Grover Cleveland made nice with the labor movement after unions clashed with railroads in the Pullman Strike.

Workers went on strike to protest low pay and 16-hour workdays, refusing to continue production and throwing the nation's railways into chaos. A military crackdown led to 13 worker deaths. Congress created Labor Day as an olive branch of sorts for union workers. 

Why big money is wrong about European banks.

By Motley Fool Pick of the Day Sep 2, 2011 2:48PM

By Tim Hanson

 

You should know by now that European banks are on shaky ground. Because of their ownership of troubled European sovereign debt -- bonds they are reportedly marking to model rather than market (i.e., they're making up what they think they're worth) -- they are going to need truckloads of new capital as sovereign defaults by the likes of Greece, Spain, Italy, or Portugal start flowing through the system.

 

And the sector's recent stock market performance reflects this massive risk. Over the past year, the Bank of Ireland (IRE) is down almost 90%, National Bank of Greece (NBG) is down more than 60%, and Spain's BBVA (BBVA) and Banco Santander (STD) are down more than 25%.

 

Thus, I found it curious that all of those bank stocks were up sharply, with NBG up more than 30%, on the news that Greece's second- and third-largest banks, Alpha Bank and Eurobank, planned to merge and get new capital from the Qatar Investment Authority, that Middle East state's sovereign wealth

 

A dismal employment report highlights the obvious: Without more help, a new recession looms.

By Anthony Mirhaydari Sep 2, 2011 2:04PM

It was inevitable. After all the gut checks and body blows we've seen this year -- energy price spikes, natural disasters, political brinkmanship -- it was only a matter of time before the job market would be hit. And that's exactly what happened Friday.

 

The government reported nonfarm payrolls were unchanged in August -- the first time that's happened since the 1940s. Yes, there were some nuances to the report. The private sector added 17,000. And the Verizon strike, which is now over, depressed the result. And the household survey held up OK.

 

But the haunting takeaway is that the economy, which has been chugging along at "stall speed" all year, is beginning to nosedive. Unless, as I've argued in my last two columns, the U.S. Treasury and the Federal Reserve dish out another dose of stimulus. Here's why.

 

Politicians and economists had plenty to say after hearing that no new jobs were created in August.

By Kim Peterson Sep 2, 2011 12:44PM
Zero jobs created in August. The stunning news roiled the markets Friday, firing up politicians and sending economists scrambling to make sense of it all.

Republicans jumped at the chance to criticize President Barack Obama's economic policies. Presidential candidate Mitt Romney called the news unacceptable. "Americans need a conservative businessman to get this economy moving again, not career politicians," he said in a statement. 

A move in crude or stocks can often telegraph a move in the other a few days early, giving investors an invaluable head start.

By MoneyShow.com Sep 2, 2011 11:48AM

By Tom Aspray, MoneyShow.com


Many stock investors or traders do not watch the crude oil market as closely as they should. For many years, I’ve compared the chart patterns of the crude oil futures with those of the S&P 500 or the Spyder Trust (SPY).


I have found many instances where crude oil tops or bottoms ahead of the S&P 500. Often, the two markets will show similar chart formations, but one of them will be completed ahead of the other.


Currently, the action in crude oil, as well as the United States Oil Fund (USO), suggests that the short-term rallies are ending. This may create an opportunity in the ProShares UltraShort Oil & Gas ETF (DUG) and also suggests that the stock market is once again ready to turn lower.


This is consistent with the short-term action of the McClellan Oscillator, one of my favorite A/D indicators. The oscillator peaked at +263—an overbought level—on Wednesday, and has now turned lower.

 

Even if the AT&T deal falls through because of the Justice Department's lawsuit, someone will come for T-Mobile.

By InvestorPlace Sep 2, 2011 11:36AM

By Jeff Reeves, Editor, InvestorPlace.com


We learned this week that Uncle Sam is less than pleased with the AT&T (T) plan to purchase T-Mobile. This changes little for AT&T and Verizon (VZ), of course, since the mobile market already is rapidly becoming a two-horse race. Sprint Nextel (S) hasn’t turned a quarterly profit since early 2007, and T-Mobile has lost some 150,000 subscribers so far in 2011.


In fact, the Justice Department’s move to step in will do little to “save” T-Mobile. In reality, the only thing it will do is ensure someone other than Verizon or AT&T will wind up purchasing the $39 billion wireless carrier.


So who else is in the market to buy T-Mobile? I have a few suitors in mind -- though most would take some accounting acrobatics or gutsy (perhaps crazy) strategic shifts:

 

Some indicators suggest that maybe, just maybe, the greenback is about to strengthen.

By Anthony Mirhaydari Sep 1, 2011 2:30PM

Although stocks haven't really gone anywhere the last few days, big changes are afoot if you know where to look. It's still early, but technical indicators suggest the dollar is poised for a big rebound in the days to come. That'll have big ramifications for a variety of assets including stocks, gold, and commodities. 

 

Why should the greenback rally now? There have been a number of important developments in the eurozone this week, all of which suggest the euro could be headed for a bout of weakness. That, in turn, should boost the dollar.

 

The first is that European Central Bank President Jean-Claude Trichet indicated in a speech to the European Union Parliament that his recent rate-hiking campaign is about to end. He did not use the keyword "vigilant," which signals an imminent interest-rate increase. And he noted that the risks to the medium-term inflation outlook are under study.

 

Political risk in China is heating up.

By Motley Fool Pick of the Day Sep 1, 2011 1:37PM

By Tim Hanson

 

Imagine you own a business in China. Now imagine that the Chinese government starts running high-profile stories in their media about how you're defrauding your customers, enabling the sale of potentially dangerous pharmaceuticals, and slandering respected academics. Would you be concerned?
 
I'm guessing you would be, and rightfully so. Companies that attract the wrath of the government in China don't tend to do so well, whether we're talking about Google (GOOG) refusing to play ball on Internet censorship, or Sanlu Group putting melamine in its milk. Google has left the market and given up significant market share, while Sanlu went effectively bankrupt -- and there are many more examples.
 
This is the worst-case scenario facing Baidu (BIDU) owners today. Following the aforementioned barrage of criticism on China's government-run CCTV last week, Baidu ultimately took to the airwaves itself and, effectively admitting guilt, apologized.

 

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

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.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

115
115 rated 1
269
269 rated 2
445
445 rated 3
614
614 rated 4
684
684 rated 5
678
678 rated 6
608
608 rated 7
454
454 rated 8
310
310 rated 9
138
138 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
AAPLAPPLE Inc10
ARCPAMERICAN REALTY CAPITAL PROPERTIES Inc10
ATVIACTIVISION BLIZZARD Inc10
BIDUBAIDU Inc10
BMYBRISTOL-MYERS SQUIBB CO.10
More

Trending NOW

What’s this?

RECENT QUOTES

WATCHLIST

Symbol
Last
Change
Shares
Quotes delayed at least 15 min

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.

MARKET UPDATE

NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
Market index data delayed by 15 minutes

[BRIEFING.COM] The stock market punctuated July with a broad-based retreat that sent the S&P 500 lower by 2.0% with all ten sectors ending in the red. The benchmark index posted a monthly decline of 1.5%, while the Russell 2000 (-2.3%) underperformed to end the month lower by 6.1%.

To get a better feel for what led to today's retreat, we'd like to look back to Wednesday, when the market had ample reason to rally, but did not. Instead, it ended basically flat after a sloppy day of ... More


Currencies

NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.