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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It might not make sense, but there is no denying the attraction of the yellow metal.
In 2008, I suggested one stock that investors must own in their portfolios.
No matter what was transpiring in the overall economy or market, this particular company knew how to make money and would continue doing so for many, many years.
The name of that stock was Apple (AAPL). At the time, shares traded for less than $100 each.
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Now you can buy the stock for just under $300 per share. Is there a similar investment story today?
You bet, and the answer may surprise you. It certainly surprised me.
Graphic chip-maker Nvidia may not be a long-term winner, but it's just beginning a short-term climb.
By Jim Cramer, TheStreet
In any given year, you can make a lot of bonehead calls, but sometimes the biggest boneheads come back to life in a spectacular fashion. Right now I am looking darned good on a pick I was roundly criticized for: Nvidia (NVDA).
If you recall, I focused on Nvidia because it was the worst performer in the S&P 500 ($INX) for the first half of the year. I said the graphic chip-maker, which was at $10 and change at the time, would have a miserable quarter and then you would have to jump and jump fast when it reported.
Of course, people then bought it aggressively ahead of the quarter, no doubt because they figured that I knew something and they should buy it immediately. Totally wrong.
Companies are taking advantage of low stock prices and cheap financing to buy back shares.
And why not? As one analyst notes, shares are cheap and financing is cheap. After sitting on piles of cash as the recession hit, companies are finally relenting and spending money on share repurchases. The moves show that companies are generally feeling better about where the economy is headed.
Companies in the U.S. have repurchased about $55 billion in shares since June, Bloomberg reports. That brings this year's total to about $260 billion so far, up from $125 billion in all of 2009.
The company is announcing new products this week, keeping momentum after shares hit a 9-year high.
But we'll still hear plenty about Oracle this week: The company is unveiling new products to developers and other fans at its annual Oracle OpenWorld show in San Francisco. Some 41,000 people are expected to attend.
And while an unbreakable Linux kernel and elastic clouds may not mean much to most of us, Oracle's announcements are ginning up enthusiasm within a devoted user base. The company has been on a tear lately, and it shows no signs of slowing down.
The US has not been receptive to previous buyout attempts.
By Paul Ausick
As General Motors prepares for an IPO, the company's majority owner, the U.S. government, is trying to figure out the best way to recover the $43 billion still outstanding from its loan to GM. The roster of potential investors includes everyone and everything, from individual investors to pension funds.
Well, maybe not quite everyone. GM's partner in its Chinese joint ventures, SAIC Motor Corp., may be interested in buying a stake in the U.S. automaker. GM is not commenting on the possibility, and the U.S. government's official statement on access to investors is "We expect that potential investors will be sought across multiple geographies with a focus on North American investors, in line with what is typical in similar transactions."
Economist Nouriel Roubini, famous for his pessimistic outlook, has hope for the US economy after all. That's why you should get your 'buy' list ready.
By Gary Gordon, TheStreet
Is it just me, or has the permanently glum Nouriel Roubini become a softy? The good professor has received more accolades than any other analyst or economist for predicting the demise of market-based securities in 2008, never mind the horrific calls he made the following year:
- In April 2009, near Dow 7,950, Roubini predicted the markets would retest the March lows of Dow 6,500. They never did.
- In July 2009, near Dow 8,100, he described the market's run as nothing more than a bear rally. Yet the Dow rose 38% over the next nine months.
- In October, near Dow 9,700, Roubini called for a bearish 10% to 20% pullback. Not only was he six months early, but the market's sell-off went to 9,700 from 11,200. The current cyclical low is essentially at the same spot where Roubini made his bearish call . . . six months earlier. You can't be much more off than that.
In light of this startling September rally, analysts who forecasted doom should own up to their mistakes.
By Jim Cramer, TheStreet
I am reminded of these technical travails as I prepare my "Chart Week" segments for this week and go over the points made by RealMoney contributor Dan Fitzpatrick on my show last night. He was talking about how reliable patterns are clues, not gospel, and how even the most obvious of them -- the dreaded head-and-shoulders pattern -- didn't play out this time around after Monday's breakout.
We were meticulous on the set beforehand, going over every single detail about levels that were hit, including the notion that we may have been repelled at a key Dow level Monday and that some people would regard the late-day action as a "reversal."
The index finally cracks 1,140 -- a key number.
After toying with investors last week, the Standard & Poor's 500 closed above 1,140 -- at 1,142.71 -- Monday.
That takes the index above the top of the trading range for the last four months. Stocks have now set a higher low in August and a higher high in September.
That's important -- and not because it's a signal that in the short term, stocks are going to rally like it's March 2009.
The low-cost airline hopes to raise $300 million by going public. Its debt load is considerable.
This marks a milestone of sorts. We haven't seen an airline go public in the U.S. since 2007, when Gulfstream International (GIA) hit the market, Bloomberg reports. By the way, GIA shares are now a whopping 68 cents.
Spirit gained notoriety this year when it started charging fees for carry-on bags. Yep, you read that right. A Spirit passenger will pay $45 per bag at the boarding gate, or $30 per bag when paying in advance (bags that can fit under a seat, however, get on for free).
Despite the financial crisis, plan managers run on past expecations. Is a time bomb ticking?
More than 100 U.S. public pension plans still have an 8% median expected return on their investments, The Wall Street Journal reports. That's unchanged from 2001.
Hmmm. Let's bring in this little thing called reality: The median annualized return of public pension plans was a meager 3.9% over the past decade. The 10-year Treasury note is at 2.75%. Inflation is at 1%, and deflation is a very real threat.
A growing group of people age 55 and beyond are desperately looking for work.
They are a growing group, this category of people in their 50s and 60s who need some income to get through their last decade or so before retirement. They "are starting to worry that they may be discarded from the work force -- forever," Motoko Rich writes.
The unemployment rate for people age 55 or older is 7.3% -- twice what it was before the latest recession started, Rich writes. About 2.2 million people in this age group don't have a job.
The 7-inch touch-screen tablet with a front-facing camera is targeted to arrive in March.
By Scott Moritz, TheStreet
Apple's plans call for an iPad 2, which will be a 7-inch touch-screen tablet with a front-facing VGA camera and a 1-megapixel rear camera targeted for arrival in March, says Rodman Renshaw analyst Ashok Kumar, who has talked to Apple's supply and manufacturing partners.
The details of the iPad 2 help confirm recent rumors that Apple is shrinking the popular iPad to defend its position against a wave of smaller new tablets like the Dell (DELL) Streak (a 5-inch device) and the Samsung Galaxy Tab (7 inches). But contrary to earlier reports of a new iPad in time for the holidays, the new information puts the arrival closer to spring.
The retail giant is looking to urban locations in a push to supplement its supercenter model.
It's a move meant to battle back against its newly minted "dollar store" competition and revitalize weak domestic sales.
The company announced it will discuss detailed business plans for the new venture later this year, though the structure would similarly resemble convenience-store operations like those currently run in Latin America.
So where are these test convenience stores in the States going to pop up?
Changes to the index focus on Wall Street fads that flame out soon after companies join the 30 components.
You might think companies would fall all over themselves to join the Dow Jones and shareholders would find stability in the index's ranks. But the truth is that joining the list of 30 components is a stomp on the neck rather than a stamp of approval.
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The reason appears to be that Wall Street "experts" in charge of the index focus on the latest fad investments, stocks that are peaking rather than corporations that are truly representative of the U.S. economy.
Take a look at this list of the 12 most recent additions to the Dow and how they have performed since joining the index:
Companies that make the Internet faster, abet Apple in its global domination or allow data to be stored remotely are the current winners. Forget about everything else.
By Jim Cramer, TheStreet
Cloud and Internet, yes. Everything else in tech, no. That's pretty much what the charts said in my weekly perusal of the pictographs courtesy of the hand-delivered S&P chart book I have been getting for 25 years.
The charts never get old, and they always show the key trends in what is loved and what is hated. Anything that touches cloud computing, making data more accessible, more storable and more secure wins. Anything having to do with anything else, except perhaps Apple (AAPL) and its mobile applications or video, is getting no love -- and no multiple -- at all.
Take Sourcefire (FIRE), a company that most people have never heard of. This networking security company is the quintessential play of the moment, one that has vaulted from $18 to $29 in a month's time. The propulsion is due to both takeover -- does it look like Radware (RDWR), ArcSight (ARST), 3Par (PAR) or McAfee (MFE)? -- and earnings. The ramp here is reminiscent of the Salesforce.com (CRM) takeoff.
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Serious issues like drought and the deterioration of the developed world spell opportunity for this industry leader.
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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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