Stocks should be crushed by global turmoil, Jim Cramer says. Instead, they're doing fine.
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As the beverage giant reports an increase in earnings, this may be the time to grab its shares.
By Andrea Tse, TheStreet
Coca-Cola (KO) reported an increase in third-quarter earnings amid solid volume growth.
The company said net income attributable to shareholders of the Coca-Cola Co. increased by 8% to $2.055 billion, or 88 cents a share, from $1.896 billion, or 81 cents, a year earlier.
Shares of Coca-Cola were rising 0.5% to $60.32 in midday trading.
Strong corporate earnings make it tough to bet against stocks, but nothing keeps going up in a straight line.
By Jamie Dlugosch
Exchange-traded funds have been successful for us as of late, but it appears that a pause may be around the corner.
One of the biggest mistakes investors can make is to project their own personal situation to the market or stocks in general.
If times are tough, the assumption is that times are tough everywhere and that stocks will likely falter. All sorts of emotions, including envy and jealousy, can come out of the woodwork when things aren’t going well personally.
Researching your picks and making an informed play off the news will give you a competitive advantage. Just look at Allergan.
By Jim Cramer, TheStreet
The other day, while I was speaking and signing books at the 92nd Street Y, someone asked me what I thought of the "perfect market theory," that everything is pretty much known about stocks simultaneously and no one can get an edge.
I laughed. I said give me a break. It's wrong EVERY DAY.
Monday was no different. Consider the biggest gainer, Allergan (AGN), which rose 5.5% on its approval of Botox for migraines. When the approval news came out after the bell on Friday, I was confident of two things: (1) The "in the know" people would know this is no surprise and (2) the "out of the know" people would think it was revelatory and take the stock up much higher.
We know about the BRIC countries. Now a new crop of nations could become the next investing hot spots.
BRIC, the countries of Brazil, Russia, India and China, have long been recognized as an investment goldmine. Economists at Goldman Sachs (GS) have suggested that BRIC could become huge forces in the world economy by 2050.
Now some are suggesting investors update their international focus to CIVETS: Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa. The bank HSBC reportedly first coined the term, with the chief executive saying he liked the countries for the following reasons:
The investor says that he bought the famous company to get revenge -- and that he could have made a wiser choice.
Warren Buffett and Berkshire Hathaway (BRK.A). You can't think of one without the other.
But that's not what Buffett would have preferred. In fact, he told CNBC that Berkshire is the dumbest stock he's ever bought. Buying the company was a $200 billion blunder, he said.
How did Buffett get saddled with one of the biggest mistakes of his life? The story has lessons for any investor -- not just the world's richest. Here's what happened.
Back in 1962, Buffett was running a hedge fund worth about $7 million, he told CNBC. He found a small textile company that was going downhill -- closing mills and buying stock with the proceeds.
He bought the stock and decided to tender it to the company for a small profit, eventually agreeing to a sell price of $11.50 a share. But a few weeks later, the company sent documents showing a sell price of $11.375.
That enraged Buffett, who thought the company was trying to pull a fast one on him. Fueled by revenge, he bought enough shares to control the company and fired the manager who had set the price.
"The truth is I had now committed a major amount of money to a terrible business," he said. "And Berkshire Hathaway became the base for everything pretty much that I've done since."
So Buffett was stuck with a run-down textile company, which he slowly molded into the Berkshire Hathaway that he is known for. But if he had just started out with a regular insurance business, he told CNBC, it would be worth another $200 billion -- twice as much as Berkshire is now.
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Citigroup and Bank of America are ridiculously low. But while their shares offer good value, that's not enough to justify buying them.
By Jim Cramer, TheStreet
Normally, I would tell you no bottom is in sight, right? Kid over his head? Except the past three times he has told me what he was doing, he was buying Riverbed (RVBD) about 50% ago, Visa (V) in the 30s and Chipotle (CMG), all down hard on something he thought was ridiculous.
Those were tremendous buys, and I remember he told me he was going to buy them; this wasn't some sort of "Hey, Jim, I bought Chipotle last week" kind of thing.
Exchange-traded funds that track cell phone companies and wireless service providers may offer some more excitement.
By Don Dion, TheStreet
Cell phone companies and wireless services providers have been some of the most exciting areas of the market to watch recently as consumers become more reliant on their smart phones.
Iron ore miner Fortescue Metals gets a loan to expand operations, which could help smooth a nasty investor dispute.
The company's stock climbed 7.8% Monday after Fortescue announced it had signed a $2.04 billion loan agreement to expand its mining operations. The loan from JPMorgan Chase (JPM) and Royal Bank of Scotland Group (RBS) matures in 2015 with an initial interest rate of 7.5% linked to LIBOR (London Interbank Offered Rate).
The bank loan replaces senior notes issued in August 2006 to fund Fortescue's initial mine and the construction of a port and railroad. Those notes will be paid off at a $605 million premium.
Investors continue to worry about the economy and the markets, and that's good news for stocks.
Stocks have continued to rebound from the correction that began in late April, with the S&P 500 and Nasdaq up about 12% and 15%, respectively, over the past seven weeks. And, according to several top market gurus I keep an eye on, there's still more room for stocks to run.
A big reason: Despite the recent gains, sentiment remains muted. In his latest MarketWatch column, for example, Mark Hulbert says that while the market is trading at almost the same level it was back in late April, sentiment levels are much lower today -- a bullish sign.
Researchers find that the Dow seems to correlate with 1 specific mood on Twitter.
That's the conclusion of researchers at Indiana University who studied the correlation between the public mood on the social-networking site and the movements of the Dow Jones Industrial Average.
The researchers studied Twitter messages posted over nearly 10 months in 2008, singling out those in which people talked about their moods.
The bond market sees another round of easing as inflationary.
The incredible market run over the past two months has been driven by one factor and one factor alone: the potential for another big round of money printing, or quantitative easing, by the Federal Reserve, to come on top of the $1.7 trillion injected into the money markets last year.
Fed chairman Ben Bernanke, a true believer in the power of additional monetary stimulus, made a big speech on the subject this morning, and the market's reaction speaks for itself. The dollar is higher against both the euro and the Japanese yen. Dollar-sensitive commodities are lower.
But the biggest reaction happened in the bond market, where long-term Treasury bonds are plunging, pushing interest rates higher and ending a seven-month trend of lower rates. What gives?
Take smaller profits instead of going for a home run.
Daily market news shows stocks pulled back Thursday as 50 state attorneys general look into allegations that thousands of home foreclosures were handled improperly. Financials were hit hard, with big banks and regionals falling on the news.
JPMorgan Chase & Co. (JPM) fell 2.6%, Bank of America Corporation (BAC) was off 5.2%, and Wells Fargo & Company (WFC) fell 4.2%. Regional banks like BB&T Corporation (BBT) and SunTrust Banks, Inc. (STI) fell 2.14% and 4.23%, respectively.
Always do your homework before buying or selling shares -- especially during earnings season, when the news tells only part of the story.
By Jim Cramer, TheStreet
Why do I emphasize endlessly that you can't trade off the headlines in earnings, that you can't make snap judgments?
Because of Pepsi (PEP).
Not that long ago, with its stock trading at $68, the company reported a strong quarter and then told people that it was doing so well in the emerging markets that it had to spend more money to take advantage of the opportunity. I liked the call because I love to hear a CEO, in this case Indra Nooyi, talk about spending -- not cutting back but spending because there is accelerated growth to be had.
Prices are likely to keep climbing because of lower inventories and smaller herds.
The fallout continues from the U.S. Department of Agriculture's shocking turnaround on the size of this year's corn crop.
Last Friday, the USDA completely reversed its optimistic Sept. 30 projection for corn production for the year and slashed its estimate of year-end stocks. The agency lowered its projections for year-end corn inventory to just 902 million bushels, a 19% drop from its September 30 estimate and a huge drop from the 2009-2010 end-of-the-year inventory of 1.6708 billion bushels. (For more on the corn harvest and the USDA's projections, see this post.)
Not surprisingly, corn prices are soaring. They rose another 8.5% on the Chicago Board of Trade on Monday.
We are expecting good things from the search leader.
Written by Douglas Estadt
Google (GOOG) reports earnings after the market closes Thursday, and we are expecting good things. The Android’s exceptional performance in outselling the iPhone, along with the recent positive earnings of tech companies, foreshadow a promising report.
Take a look at why we believe in Google and what we do to profit:
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Tighter regulations and the end of a lengthy bull market in bonds have changed the landscape forever.
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[BRIEFING.COM] The S&P 500 (-0.4%) has reclaimed about three points after notching a session low during the opening 15 minutes of the action, while the Dow Jones Industrial Average (-0.7%) remains not far from its worst level of the day.
So far, the price-weighted Dow has been unable to stage a rebound effort due to significant weakness in the top-weighted stock. Visa (V 212.16, -10.58) is lower by 4.8% following its disappointing guidance, while the second and third-largest ... More
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