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.


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.


The company is lowering its soda machine projections for the second half of the year, however.

By MSN Money Partner Wed 1:20 PM
SodaStream soda mixes (© Todd Oren/Getty Images for SodaStream)By Myles Udland, Business Insider

Shares of SodaStream (SODA) were up more than 12 percent Wednesday after the company reported earnings and revenue that beat estimates.

In the second quarter, the maker of beverage carbonation machines earned 43 cents per share, better than the 31 cents expected by analysts, on revenue of $141.2 million, topping the $140.6 million Wall Street expected. 

"The second quarter was highlighted by record gas refills including unit growth in all regions underscoring the global appeal and stickiness of our home carbonation system," said CEO Daniel Birnbaum in a statement. "Our total business in our Western Europe, Asia Pacific, and CEMEA regions all posted solid increases in the second quarter as our product and marketing strategies are leading to increased household penetration and user activity." 

Tags: SODA

Should the fast-food chain act as the boss of all workers in franchised stores? The company says no, but organized labor says yes.

By MSN Money Partner Wed 12:56 PM

A McDonald's employee prepares an order at a McDonald's restaurant on April 19, 2011 in San Francisco, Calif. (© Justin Sullivan/Getty Images)By Josh Eidelson, Businessweek

The fast-food business model just suffered a blow. 

The top prosecutor for the federal labor board has rejected McDonald's (MCD) claim that it's not the boss of the workers in its franchised stores.

Within the past 21 months -- the period in which strikes by fast-food workers went from unheard-of to increasingly common -- union-backed McDonald's workers have brought 181 charges before the National Labor Relations Board. On Tuesday the NLRB general counsel's office announced it had found dozens of allegations with enough merit to pursue. 

And, more important, the general counsel directed NLRB officials to treat McDonald's as a defendant alongside the franchisees running the stores. Giving McDonald's shared responsibility for how franchisees treat workers could force corporate headquarters to get involved more closely with everything from potential unionization to wages.


We have seen a huge correction, and we now need to look for signs that it is ending.

By Jim Cramer Wed 12:27 PM

A trader analyzes stock data on the floor of the New York Stock Exchange © Scott Eells/Bloomberg via Getty ImagesThe rolling correction continues as we've seen some really powerful downward moves in some of the major industrials. They remind me of something Byron Wien -- a senior adviser at Blackstone and by far my favorite market commentator -- said at the beginning of the year. He remarked that the S&P 500 would initially drop 10 percent in a worst-of-times situation, and then in a best-of-times situation it could rally 20 percent, heading perhaps to 2,300 by the end of the year.

I point this out because Wien put out his monthly note Tuesday night, and it is very positive on the market -- but he does not directly address that he thought stocks would have that initial decline.

TheStreet.com logoYet as I look over so many of the big industrials and many of the technology stocks, I see the market did have a pretty large correction already. Stocks such as General Electric (GE) and Boeing (BA) and United Technologies (UTX) are down huge from their highs. The cloud-computing stocks, despite their nascent rallies, are down much more than 10 percent.


The company's earnings beat impressed Wall Street, but some observers say there are still long-term questions about its future.

By MSN Money Partner Wed 12:21 PM
Credit: © Richard Drew/AP Photo
Caption: The Twitter bird logo is on an updated phone post on the floor of the New York Stock Exchange.By Barbara Kollmeyer, MarketWatch

Twitter (TWTR) shares soared anew on Wednesday as analysts scrambled to lift price targets after quarterly results blew away Wall Street's forecasts.

The stock was up 20 percent in midday trading on heavy volume of about 80 million shares. It soared late Tuesday after the company's adjusted profit and revenue surpassed expectations, and its outlook on full-year revenue was also better than a previous estimate. 

Analysts had been holding their breath over the tally for monthly active users. Twitter edged past expectations for 267 million monthly active users with a count of 271 million.


Delta Airlines' intrusion into Alaska's Seattle hub has motivated Alaska employees into a sort of 'Keep Alaska My Alaska' campaign.

By TheStreet.com Staff Wed 11:44 AM

The tails of Alaska Airlines jetliners pass at Seattle/Tacoma International airport in SeaTac, Wash. © David Zalubowski/APBy Ted Reed, TheStreet

For Alaska Airlines (ALK), the reality of being under assault by a stronger adversary sank in six days ago, when the carrier reported earnings that beat estimates -- yet watched its shares fall 9 percent as analysts worried about capacity increases in key markets.

But Delta's (DAL) effort to build a Seattle hub on top of Alaska's Seattle hub is also having a positive impact for the airline, in that it is further uniting Alaska's approximately 10,200 workers, 83 percent of them unionized.

It has not escaped the workers that Delta is a largely non-union carrier, one that strongly resisted efforts by the International Association of Machinists and the Association of Flight Attendants to organize its workers following the 2008 merger with Northwest. IAM and AFA are the two largest unions at Alaska.


Jobs numbers expected later this week will shed more light on the economy. 'The Fed has to be delighted,' one economist says.

By MSN Money Partner Wed 11:39 AM
Image: Arrow Up (© Stockbyte/SuperStock)By Patti Domm, CNBC

A stunning acceleration in second-quarter growth and a jump in inflation are triggering a new round of speculation that the Fed will have to speed up plans to hike rates.

The faster pace of growth makes it more likely the economy will grow at a better clip in the second half, but strategists do not expect the Fed to change its timeline unless there is a consistent jump in activity. 

The number is not expected to have any impact on the Fed statement scheduled for 2 p.m. EDT Wednesday.

Second-quarter GDP grew at 4 percent, well above the expected 3 percent. Traders focused on the faster pace of inflation at 2.3 percent annual rate, compared with 1.4 percent in the first quarter, as measured by the personal consumption expenditures index. That is above the Fed's 2 percent target rate.

Tags: JPM

After enjoying a smooth rise in stock prices since May, investors are about to be hit with another bout of volatility.

By InvestorPlace Tue 5:41 PM

Image: Stock market © Digital Vision/SuperStockBy Anthony Mirhaydari

Stocks dribbled lower on Tuesday in response to the West's application of additional pressure on Russia in the form of expanded economic sanctions -- on growing evidence Moscow is directly furnishing weapons and support to pro-Russian Ukrainian separatists.

The Dow Jones Industrial Average ($INDU) lost 0.4 percent after trading in the green earlier in the session.

After enjoying a smooth, easy rise in stock prices since May, investors are about to be hit with another bout of volatility. Normally, this liquidity-boosted market wouldn't blink an eye. But given the divergences underway -- with significant weakness among small-cap stocks and high-yield bonds as large-cap stocks remain unaffected -- it could set the stage for some fireworks.


Even if you're a full-on bull for certain picks, it's helpful to know how negative the bets are against them.

By InvestorPlace Tue 3:57 PM

File photo of the GameStop store in New York on April 28, 2008 just before 'Grand Theft Auto IV' was released (© Ramin Talaie/Bloomberg via Getty Images)By Jeff Reeves

A look at the most-shorted stocks can be helpful to investors, whether they are betting in favor of the stock rising or trying to profit from its decline.

That's because when short interest is high, there's also a high chance of volatility.

Obviously if a lot of bearish investors are piling into short positions, that is a measure of negative sentiment . . . but if a stock with high short interest just manages to post a glimmer of hope, a short squeeze can prompt a spectacular rally as short sellers rush to cover their positions and buy back the stock.

Depending on which side of the trade you're on, you can either make a big profit or feel a lot of pain in a stock that has high short interest.


In this economy, you'd think these retailers would be racking up the sales. That's not the case.

By MSN Money Partner Tue 1:36 PM
Manager Doris Oransky arranges merchandise at a Dollar General store in Arvada, Colorado on June 2, 2009 (© Rick Wilking/Newscom/Reuters)By Ashley Lutz, Business Insider

Discount stores are slowly dying. 

Monday, Dollar Tree (DLTR) announced it would buy Family Dollar (FDO), a chain that is in the process of closing hundreds of stores and firing workers. 

Other discount stores have been struggling as well, writes Heidi Moore at The Guardian. Fashion discounter Loehmann's filed for bankruptcy, while Wal-Mart's (WMT) sales have declined for the past five quarters. 

"There’s just not enough money deployed by American families to keep all the discount chains in business," Moore writes. 


The last time bond investors were this bullish, the 10-year yield saw an extraordinary rise.

By MSN Money Partner Tue 1:07 PM
Credit: © vaeenma /Getty Images
Caption: Road sign to bond marketBy Mark Hulbert, MarketWatch

Interest rates have fallen this year because the otherwise compelling case for why they should rise was missing one crucial piece -- until now.

That missing piece was in the sentiment arena: Far from the excessive bullishness typically seen at market tops, bond traders and investors instead have been quite bearish. In classic contrarian fashion, the market instead did just the opposite -- rallying as interest rates fell.

But the Wall of Worry has now given way to near-record levels of bullishness. That's not a good sign.

Consider the average recommended bond market exposure among a subset of short-term bond market timers tracked by the Hulbert Financial Digest (as measured by the Hulbert Bond Newsletter Sentiment Index, or HBNSI). On three occasions over the last six weeks this average has risen to its highest level since 2009 -- 54.7 percent.


Ahead of Twitter's second-quarter earnings release, analysts are largely bullish, and investors are watching several metrics closely, especially user growth.

By TheStreet.com Staff Tue 1:01 PM

The Twitter Inc. company's headquarters in San Francisco © David Paul Morris/Bloomberg via Getty ImagesBy Laura Berman, TheStreet

Twitter (TWTR) reports its second-quarter earnings after the bell, and investors are watching several metrics closely, especially user growth.

Twitter shares have fallen 8 percent in the last three months and 40 percent year-to-date, with investors wary that the social network's user base isn’t growing fast enough. Last quarter, Twitter reported 255 million monthly active users, well below rival Facebook’s (FB) 1.3 billion during the same period.

User engagement has slipped: in the first quarter, Twitter saw 157 billion timeline views, down from 158 billion in the third quarter of 2013 despite adding 23 million users to the platform. The company has tried to convince investors that it still has strong growth prospects, notably by engaging users and advertisers during this year’s FIFA World Cup, during which the company set several new tweet records.


Shareholders held a mostly symbolic protest vote last year in response to high executive pay.

By MSN Money Partner Tue 12:53 PM
Credit: © Action Press/Rex Features

Caption: Larry Ellison, co-founder & Chief Executive Officer of Oracle Corp.By Shira Ovide, The Wall Street Journal

Oracle (ORCL) significantly cut its yearly stock grants to Chief Executive Larry Ellison (pictured) and other top executives nearly a year after a wave of shareholder opposition to compensation paid to the billionaire chief.

Mr. Ellison, typically among the highest-paid U.S. corporate executives, has received the bulk of his compensation in the form of an award of seven million stock options in each of the last eight years at least, according to compensation disclosures. 

Last week, the board granted him options on three million shares, according to a regulatory filing released Monday.

The options would be valued at roughly $46 million, based on Oracle's most recent stock price and the value it placed on other stock options in the fiscal year ended May 31.

Tags: ORCL

The electronics retailer won't have much financial cushion to fund its turnaround plan, the ratings agency says.

By MSN Money Partner Tue 12:41 PM
People walk past a RadioShack store in Manhattan on July 26, 2012 in New York City (© Mario Tama/Getty Images)By Krystina Gustafson, CNBC

Moody's on Tuesday issued a warning that RadioShack's (RSH) turnaround plan may never come to fruition.

The credit ratings agency said that although the struggling electronics chain should have enough liquidity to make it through the current fiscal year, it is "increasingly likely" it will run out of cash by the fiscal third quarter of 2015.

"Barring a cash infusion, RadioShack will not have much of a cash cushion to draw upon as it scrambles to remain relevant in the increasingly competitive mobile phone and consumer electronics business," Moody's said in a note on Tuesday.

"Unless RadioShack can orchestrate a successful turnaround strategy over the next 12 to 18 months and improve customer traffic in its stores, we think the company's liquidity will continue to deteriorate and it will start to lose vendor support."

Tags: RSH

Energy companies are lining up for approval to ship an ultralight type of crude called condensate.

By MSN Money Partner Tue 12:18 PM
Credit: © Jim West/Alamy

Caption: Rail tank cars transport oil produced in the Bakken shale field
By Matthew Philips, Businessweek

An important shift has quietly occurred in the U.S. oil industry in the past month.

 In late June, the Department of Commerce determined that two Texas companies, Pioneer Natural Resources (PXD) and Enterprise Products Partners (EPD), could start exporting an ultralight type of crude called condensate. That constitutes the biggest loosening of the U.S. ban on oil exports since it was passed in 1975.

After news of the ruling broke, Commerce Department officials seemed genuinely surprised by the reaction and announced that allowing condensate exports did not ordain a change in the law. Yet that's pretty much how the market treated it.

Energy companies are now lining up to get the same permission from the government as Pioneer and Enterprise. There's talk of building condensate-only pipelines in Texas, home to some of the biggest such reserves in North America. 



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.


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

Top Picks


Trending NOW

What’s this?



Quotes delayed at least 15 min


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.


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

[BRIEFING.COM] The S&P 500 (-0.5%) has paused its slide in the 1920 area for the time being. The benchmark index spent the first 90 minutes of action near its flat line, but has been pressured to lows in recent action. There was no particular catalyst that could be cited for the weakness, which suggests the retreat resulted the market's inability to build on a modest gain that was on display shortly after the open.

At this juncture, four of six cyclical sectors trail the broader ... More


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