The most likely scenario is that the markets will begin to rise from here -- and that bounce is just beginning to take hold.
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The pizza-delivery pioneer goes back to the drawing board and emerges a winner.
By Jake Lynch, TheStreet
A last-place finish in national taste tests last year persuaded Domino's Pizza (DPZ) to remake its recipe. Customers like the new Domino's, and investors should too.
The chain was founded in Ypsilanti, Mich., in 1960 by brothers Tom and James Monaghan. Tom quickly bought his brother's half of the business and began a two-decade expansion of franchise and company-owned stores outside Michigan and into Canada. Private-equity firm Bain Capital bought 93% of the company in 1998 and got out in 2004 when Domino's went public.
The NYSE offering forced executives to cater to a new ownership's demands, chief among them a focus on quality. The menu was expanded to include appetizers and desserts, but patrons' lingering dissatisfaction with pizza quality nagged. Then came that taste test.
Tim Geithner's statement about capital gains and dividend tax rates signals a meaningful shift in the administration's attitude toward the stock market.
By Jim Cramer, TheStreet
If Treasury Secretary Tim Geithner's got the juice, and if his statement on CNBC that capital gains and dividend taxes might stay where they are holds water, then we have lost the principal reason to sell stocks, particularly high-yielding dividend stocks.
Moreover, any signal, especially one expressed on Larry Kudlow's CNBC show, that these two rates will remain low is a sign that the Obama administration recognizes that the stock market is far more important than it thought when it comes to the November election.
Larry and I fought hard for the dividend tax cut, and people in Washington know that. This signal is very important and cannot be dismissed. Until this interview, I regarded this administration as an opponent of capital and an endless champion for labor, particularly municipal, state and federal workers.
Orders for big rigs are up, and momentum should continue into next year.
The growth thesis for heavy-duty-truck sales continued to play out in May. Net orders climbed by 84% from May of 2009.
That thesis says truck sales should boom in late 2010 and into 2011 as truck owners, who have put off buying during the recession, resume purchases driven by growth in shipping volumes, new government rules that require reduced pollution, and improved engine technology that increases performance and lowers operating costs.
More than 50% of orders for Class 8 trucks placed in May are scheduled for delivery in the third quarter, just in time to beat the surge in volumes that comes with the peak fall shipping season, according to ACT Research.
A drop in the greenback is helping to push stocks and commodities higher as traders become more confident about the economy.
For months, the winning trade was to short stocks, the euro and commodities while buying gold, bonds and the dollar. Commentators labeled this the "risk off" trade, since gold and bonds were seen as haven assets. But when crowd mentality is at work and sentiments, not fundamentals, are driving the bids, there really isn't such a thing as a safe trade. It's all speculation.
I wrote about the likelihood that the greenback would win back some converts in a column back in November. At the time, the airwaves were filled with proclamations that the dollar would lose its status as the world's de facto reserve currency. I warned that "during the next calamity, we will be reminded of just how secure the dollar is: There will be no place to hide except real cash, and the world's investors will frantically buy dollars to unwind their risky positions."
But over the past few weeks, and despite the fact that stocks kept falling, many of these positions started to be unwound. Here's what you need to know.
One advantage of homeownership is your mortgage interest deduction. But maybe not for long.
The "Robama Hood" administration continues in its quest to rob from the "rich" and give to the "poor." For some reason, they have made it their quest to punish families making over $250,000 and redistribute their "ill-gotten" gains to those making less than $40,000.
One of Obama's targets is the mortgage interest deduction (MID). The Tax Policy Center notes that people making less than $40,000 get an MID of only $91, while the filthy rich making more than $250,000 get an MID of $5,459. The administration estimates that the MID will "cost" the Treasury $131 billion in 2012.
Obama's budgets have suggested limiting that deduction for higher-income earners, and other proposals are drifting around D.C. as well. You can read more here.
Can you believe that they think the American homeowner is robbing the Treasury? Since when is the executive branch's mission to maximize taxes?
Sales and market share are plummeting in the company's painkiller business.
Tylenol is one of those products you just expect to be around forever, but that might not be the case.
The brand is in serious trouble, and if Johnson & Johnson (JNJ) doesn't do something about it, Tylenol is doomed.
In the internal-analgesics market, the company's sales and market share are down 65% from a year ago, according to Advertising Age. This is a crisis on par with the 80% market share drop Tylenol suffered after its tablets were laced with cyanide in 1982.
But unlike in the 1982 crime, JNJ has only itself to blame for the Tylenol headaches this time around. The company has serious manufacturing problems, and its McNeil Consumer Healthcare division, which makes Tylenol, announced seven recalls between September and March.
Madison Square Garden shares are moving in anticipation of King James signing with the Knicks.
With speculation over LeBron James and the New York Knicks forging an alliance, it's been a big week for Madison Square Garden (MSG) stock, listed on the Nasdaq exchange.
MSG stock has jumped up about 5% in the past week -- double the broader market -- even when this morning's rollback in share prices is taken into account.
Get 'em at a discount now and take profits later.
By Andrea Tse, TheStreet
One investor's market beat-down is another investor's buying opportunity. And with increasing numbers of portfolio managers predicting that the market will end the year higher from current levels, this could be an opportune time to seek out cheap stocks and take profits later.
"Stocks now appear back in an oversold condition, which we view as a ripe environment for active portfolio managers," Eric J. Marshall, the director of research at Hodges Capital Management, wrote in a recent report.
Meanwhile, Thomas Villalta, the chief investment officer at Jones Villalta Opportunity Fund, noted in a recent report that "at the mid-point of 2010, the economic trajectory continues to support the assertion that the economy is recovering."
Wall Street is expecting big things from JPMorgan Chase and Morgan Stanley.
If you've been waiting for the three bank stocks I added to Jim's Watch List on June 25 (see this post) to sell off before putting in a bid, this earnings season may give you the opportunity -- for two of the three anyway.
Goldman Sachs (GS), the third U.S. bank on my Watch List, is expected to report a big drop in earnings -- but investors who bid the stock up Wednesday seem to be counting on Goldman to pull a surprise out of its earnings report. If it simply meets low expectations, these shares, too, could sell off.
The US Postal Service's proposed hike could bite into Netflix's profits -- possibly to the tune of $50 million.
Postal rates are likely headed up in January. The price of a first-class stamp could rise from 44 to 46 cents, if a request by the U.S. Postal Service is approved.
The sting could be particularly painful for Netflix (NFLX), which may have to pay as much as $50 million a year in increased postage, NewTeeVee reports.
The postal service is proposing a 7% rate increase for media or library mail, which is the category that Netflix likely falls into, writes Ryan Lawler.
A federal jury rules for 'Millionaire' creator Celador International. Disney will challenge the award.
A federal jury on Wednesday awarded "Who Wants to Be a Millionaire" creator Celador International more than $269 million in damages, ruling that Disney and its family of TV companies failed to "perform the obligations of the rights agreement" of their contract that brought the game show to the U.S.
The jury awarded the British producer more than $260,238,024 for revenues from the network license fee, plus $9,193,774 in revenues from merchandising.
"We believe this verdict is fundamentally wrong and will aggressively seek to have it reversed," Disney said in a statement.
The electric-car maker had a red-hot IPO, but shares have dropped below the offering price.
Shares of the electric-car company soared 40% on its first day and climbed higher the second. But in less than a week, the stock would come crashing down below the $17 IPO price. Wednesday, shares are in the $15 range.
"It’s a black eye for any IPO to fall so quickly below its offering price," writes The Los Angeles Times. The fast turnaround is making some wonder if the underwriting team placed the shares with flippers who wanted out quickly, Tom Petruno adds.
'Avatar' boosts earnings, and the company doubles its worldwide expansion efforts.
The company announced Wednesday that for the second quarter, its gross box office worldwide was $115 million. That's a 37% increase from last year's second-quarter box office of $84.2 million.
Though much of the box office growth can be attributed to the success of "Avatar," chief executive Richard Gelfond said that even excluding the 3-D blockbuster, per-screen average through the first six months stands at $647,000. That's a 13% increase over the prior-year period.
The company's CEO travels the world to win back the confidence of oil partners and investors.
That could start to change, as BP launches what one investor calls a "charm offensive" to win back the hearts of the market and partners. We know BP already has the "offensive" part nailed down. What about the charm?
Hayward is flying around the world to tell countries that it's business-as-usual for BP, The Wall Street Journal reports. He's also assuring them that BP won't sell major assets to come up with the money for its U.S. liabilities.
The latest ISM index data doesn't give bullish investors much to cheer about, but the modest growth may defy fears of a double-dip recession.
By Eric Rosenbaum, TheStreet
On Tuesday morning, it looked as if the markets were ready to discount any negative data points, with a triple-digit gain in the Dow Jones Industrial Average ($INDU) quickly attained. The markets raced ahead even though the latest data from the Institute of Supply Management non-manufacturing index was sluggish, at best.
However, by the end of trading on Tuesday the big market gains had been pared back to modest levels, and the debate continued for another day as to whether investors expected a double-dip recession and would continue to de-risk their investment portfolio.
The ISM non-manufacturing index became the latest economic pawn of the double-dip recession debate on Tuesday. Non-manufacturing activity grew at a slower rate in June than expected, but that sluggish growth rate was the expectation of many market watchers. The dip in the ISM non-manufacturing index was greater than forecast -- to a level of 53.8 -- worse than the expected drop to 54.9 from May's reading of 55.4.
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[BRIEFING.COM] The stock market ended the holiday-shortened week on a mixed note as the Dow Jones Industrial Average shed 0.1%, while the S&P 500 added 0.1% with seven sectors posting gains.
Equity indices faced an uphill climb from the opening bell after disappointing quarterly results from Google (GOOG 536.10, -20.44) and IBM (IBM 190.04, -6.36) weighed on the early sentiment. Google reported earnings $0.15 below the Capital IQ consensus estimate on revenue of $15.42 ... More
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