Finance professor Jeremy Siegel still expects the Dow to hit 18,000. But he's concerned about the labor force and commodity prices.
VIDEO ON MSN MONEY
A certain soft-drink maker recently boosted its yield and also offers good upside potential.
It has been a brutal May for most investors. The Dow was down about 10% so far as of the opening bell today, the S&P 500 was down 11%, and the Nasdaq off 12%. Those figures have only gotten worse as the day has dragged on.
So where do we go now? The recent sell-off has touched all corners of the market, with even the "safe haven" of gold taking a tumble. My recommendation to you: Hide out in great blue-chip stocks with upside potential for shares and a healthy dividend to help you ride things out when the market gets rocky.
Community banks still suffering, despite signs of overall industry improvement.
By Philip van Doorn, TheStreet
While the Federal Deposit Insurance Corp. reported improved earnings at more than half of U.S. banks and savings and loan associations last week, the ranks of troubled community banks continued to swell.
Based on a full set of first-quarter regulator data provided by SNL Financial for the nation's 7,900 banks and savings and loan associations, 161 were undercapitalized, according to the guidelines that apply to most institutions.
SNL's list is sorted by state, city and name of the undercapitalized bank or thrift. The Watch List of 161 institutions is down from 163 in February, although 49 of the institutions on the previous list have already failed.
When you look past Europe's debt woes, you'll see stronger US consumers, an improving housing market and banks with capital.
Is everything terrible? Is everything going bad? Or are there some self-adjustments that will make the US better down the road, despite the worries from Europe.
To the last, I say, dramatically, yes. Let's go back to what caused all of our downturn to begin with: a sapped consumer, declining values in housing, a rise in unemployment and a sense that our banks were not safe. We pulled in our horns, and the banks -- worried themselves -- stopped lending.
Now let's look at where we are.
Transocean may have low-balled the potential cost of the Deepwater Horizon debacle.
The company's public response to the Deepwater Horizon disaster in April has been to say it wasn't our fault, and we're not on the hook for very much money.
Even if true -- and there's a good chance both statements are true -- this isn't exactly how a company that gives a damn responds to what is becoming the biggest oil-related environmental disaster in U.S. history.
Shares down another 10% following the sequel's disappointing $71.3 million opening.
As of 2:30 p.m. ET on Monday, the company’s stock was trading at $31.48 per share, about 10% lower than when trading started.
DreamWorks' stock also tanked 4% last week after an analyst predicted that “Shrek Forever After” would debut to less than the previous two installments, which both premiered to well over $100 million.
The beleaguered bank's fortunes change as it gets a buy rating from Goldman Sachs.
The analysts said Citigroup looks good as capital markets and consumer credit start to improve, DealBook writes. The analysts didn't look as favorably on Wells Fargo (WFC), which was downgraded to neutral on the suspicion that it faces more near-term risks than other banks.
New numbers for April show big improvements in consumer delinquencies and charge-offs, the analysts said. That's helped along by a better jobs market.
Xerox and Baidu are new favorites among hedge funds, according to a new report.
And for some reason, hedge funds have developed a new admiration for Xerox (XRX), reports Market Folly. That stock is now appearing on Goldman Sachs' (GS) VIP list, which shows the favorites among hedge funds using fundamental strategies each quarter.
Other new stocks on the list include Kraft Foods (KFT), Baidu (BIDU), Coca-Cola Enterprises (CCE) and Equinix (EQIX).
Burger King store owners say promotion isn't worth it, but judge says the menu item must stay.
Updated at 2:35 p.m. ET
Except there was one problem -- franchisees who owned BK stores bristled at the deal, saying it squeezed margins way too thin and hurt their bottom line. The disagreement over the BK double cheeseburger resulted in a lawsuit late last year that went all the way to a federal court in Miami.
But at last, this food fight is nearly finished after a judge ruled recently that Burger King management has the right to dictate value-meal pricing to franchisees. That means the $1 BK menu item should stick around.
Investors sell stocks and buy gold after Spain's central bank bails out regional bank and euro loses value.
By Alix Steel, TheStreet
Gold prices Monday were rising as investors opted for the safety of the precious metal and sold out of stocks to buy gold.
Gold for June delivery was adding $11.60 to $1,187.30 an ounce at the Comex division of the New York Mercantile Exchange. Gold has traded as high as $1,119.10 and as low as $1,176.80. The U.S. dollar index was rising 1.16% to $86.36 while the euro was slumping 1.80% to $1.23 against the dollar. The gold spot price Monday was adding over $6, according to Kitco's gold index.
Gold prices were rallying as European debt fears flared and the euro headed toward its four-year low. Over the weekend, Spain's central bank bailed out the regional savings bank CajaSur, the second bank Spain has bailed out since March 2009.
John Auther highlights the problems with the markets -- and potential solutions -- in his new book.
The abstract is pure genius; I can't wait to read the book. To me, a genius is anyone who can take complex subjects, boil them down and explain them in such simple language that even I can understand them.
He outlines the problems with the markets as:
The amendment proposed by Sen. Blanche Lincoln would benefit foreign banks, such as Deutsche Bank and UBS.
The amendment would force banks to spin off their derivatives trading operations.
As hated as our banks are in this country, as hated as they are by the politicians, even they seem to realize that if you can't offer corporate clients a slate of swaps and derivatives, they will go elsewhere. Every major client needs that flexibility.
The satellite radio stock is on a tear in 2010, and has the fundamentals to back it up
I’m not a real believer in true “penny stocks,” since unknown companies with unknown fundamentals don’t jive with my growth investment strategy.
But I will say that there are a number of cheap stocks out there -- less than $2 or $3 a share -- that have enough Wall Street coverage to be legit, and have shown me enough punch that they would be worth any investor’s cash.
While most of these stock picks tend to be tiny, with a market cap of only a few hundred million dollars, one big penny stock stands out to me right now as a great opportunity: Sirius XM Radio (SIRI). Shares are less than $2 as of this morning’s open and are a great buy at this valuation. Here’s why:
Although the market was up and down it ended down for the week
Value Line Index -- Contains 1700 stocks so it's much broader than the S&P 500 or the very narrow Dow 30 -- This week the Index was down
- Down by 5.50% for the week
- Had 2 up days and 3 down days
- Had 2 up weeks and 3 down weeks
- Had 3 up months and 2 down months
- Closed Friday below its 20, 50 and 100 day moving averages
- Barchart technical sell signal of 64% -- 2 buy, 1 hold and 10 sells
Barchart Market Momentum -- Contains approximately 6000 stocks -- Percentage of stocks closing above their Daily Moving Averages for various time frames -- More than 50% bullish -- Less than 50% bearish -- Very bearish this week
After a hellish couple of weeks, some perspective on the recent stock market decline.
It's been a tough couple of weeks for stocks. From its April high, the S&P 500 lost more than 13.4% as it dropped into Friday's low. The index also sliced through its 200-day moving average -- which is seen as the demarcation line between bull and bear markets.
So, was that it? Will the European debt crisis, financial regulatory reform, and the oil slicked Gulf of Mexico all combine in some king of unholy alliance to detail the global economic recovery and send stocks careening into the abyss?
It's tempting to get caught up in the excitement and emotion of the dramatic stock market selloff we've just witnessed. And it's easy to throw your hands up and declare the end of the bull market that started last March. But has all the recent volatility really marked the birth of a new bear cycle for stocks? I don't think so. And here's why.
A new study shows that a lesser-used valuation metric might have value
The stock investing world is filled with well-known valuation metrics -- the price/earnings ratio, price/book ratio, free cash flow yield, price/sales ratio, and numerous other variables have been used by successful investors to find winning stocks.
A new study shows, however, that a much less popular valuation metric -- the gross profits-to-assets ratio -- may be one of the better predictors of future stock performance.
The study, entitled “The Other Side of Value: Good Growth and the Gross Profitability Premium”, was performed by Robert Novy-Marx of the University of Chicago and National Bureau of Economic Research. (Thanks to The Stingy Investor and CXO Advisory Group for highlighting the research.) In it, Novy-Marx finds that the gross profits/assets ratio is actually a better predictor of future returns than more widely used earnings- and cash flow-based valuation metrics.
MORE ON MSN MONEY
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.
Consumers are very status conscious in Asia, Africa and other emerging-market areas. This is especially true in China.
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.
[BRIEFING.COM] The stock market ended the Thursday session on a mixed note ahead of Friday's nonfarm payrolls report for February (Briefing.com consensus 163K). The Dow Jones Industrial Average (+0.4%) and S&P 500 (+0.2%) posted modest gains while the Nasdaq Composite (-0.1%) lagged throughout the session.
Equities began the trading day on an upbeat note following comments from the Bank of England and the European Central Bank, both of which reaffirmed their commitment to ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|