Why stocks are in for a rough ride this week
Stocks in for a rough ride this week

Longtime market bull Jeremy Siegel says investors could realize the market is behind the curve on interest rates.


An interest rate tease in The Wall Street Journal sends the market into an optimistic tizzy -- but one that doesn't end quite at the top.

By InvestorPlace 7 hours ago

Traders work on the floor of the New York Stock Exchange. © Spencer Platt/Getty ImagesBy Anthony Mirhaydari

Markets had been drifting lower over the last few days in anticipation of a more hawkish outcome from the Federal Reserve's latest two-day policy meeting, due to wrap up on Wednesday.

Given the robust performance of the economy over the summer, investors are preparing for the Fed to confirm this by ending the QE3 bond-buying program in October and moving forward the timing of its first short-term interest rates hike since 2006 into the middle of 2015.

This was a change from the September 2015 timing that Wall Street analysts had penciled in.

So the dialogue was all about the end of the steady flow of cheap-money stimulus.

That changed on Tuesday, sending the Dow Jones Industrial Average ($INDU) to record intraday highs -- although the Standard & Poor's 500 Index ($INX) couldn't close above the 2,000 level once again.


Longtime market bull Jeremy Siegel says investors could realize the market is behind the curve on interest rates.

By MSN Money Partner 10 hours ago
Credit: © Matt Stroshane/Bloomberg via Getty Images
Caption: Jeremy Siegel, the Russell E. Palmer Professor of Finance at the Wharton SchoolBy Matthew J. Belvedere, CNBC

Stocks could be in for a rough ride in the next week or so as investors come to realize that the market is a "little behind the curve" on interest rates, longtime stock market bull Jeremy Siegel (pictured) said Tuesday as the Federal Reserve began its two-day policy meeting.

But in the long-run, stocks should continue their march higher, the Wharton School professor added in an interview on CNBC's "Squawk Box."

"If you look at the Fed Funds futures market, they are below the rates the FOMC [Federal Open Market Committee] members believe are going to prevail at the end of the 2015 and 2016," Siegel said. "We usually think the Fed is behind the curve."

He's among the market watchers who believe the Fed will drop the phrase "considerable time" in its policy statement Wednesday when referring to how long the central bank will keep interest rates low.


The feature comes after iTunes users complained about being forced to download and keep the free songs.

By InvestorPlace 10 hours ago

The Edge, Bono, Larry Mullen, Jr. and Adam Clayton of 'U2' arrive at the 86th Annual Academy Awards, Los Angeles
© Dan MacMedan/WireImage/Getty ImagesBy William White

Apple (AAPL) has released a new tool that will delete U2's newest album, "Songs of Innocence," from iTunes.

Apple's tool has users visiting this site. The webpage has a button labeled "Remove Album" and clicking it will delete the U2 album from users' iTunes accounts after they've logged in.

The tool's release comes after several iTunes users complained about being forced to download and keep the free album. These users had the ability to delete the music from their devices, but it would always remain in their libraries on iCloud.

U2 anticipated that not everyone would enjoy having their new album and addressed this in a blog post.

Tags: AAPL

A group of investors snapped up preferred shares in the Chinese e-commerce company through a little-noticed private offering in 2012.

By MSN Money Partner 11 hours ago
Credit: © Carlos Barria/Newscom/Reuters
Caption: An employee walks past a logo of Alibaba at its headquarters in ChinaBy Jenny Strasburg, Mia Lamar and Telis Demos, The Wall Street Journal

The initial public offering of Alibaba Group Holding Ltd. this week will be a bonanza for a group of previously undisclosed investors who snapped up preferred shares in the Chinese e-commerce company that were sold in the run-up to its public debut.

Roughly two dozen investors bought convertible preferred shares in Alibaba through a little-noticed $1.7 billion private offering in 2012, including sovereign-wealth funds, Asian hedge funds, one of the banks that managed the deal and other big asset managers, people familiar with the matter said.

They stand to profit handsomely from the investment -- and their potential payday got a little bigger Monday, when bankers pitching the shares to investors moved their price even higher.

Tags: YHOO

The chain is expanding a build-your-own-burger test in California. It could be viewed as market research for the next hit combo.

By MSN Money Partner 11 hours ago
Credit: © Gene J. Puskar/AP

Caption: A McDonald's Big Mac sandwichBy Venessa Wong, Businessweek

McDonald's (MCD) recently expanded its build-your-own burger test

Now, in four Southern California stores, customers will be encouraged to assemble any combination of the following:

Beef patty: One or two

Bun: Buttered toasted bakery-style bun, buttered toasted artisan roll

Cheese: American, sharp white cheddar, pepper jack

Tags: MCD

The stock is expensive and the guidance is weak -- not an appetizing combination.

By TheStreet.com Staff 12 hours ago

Credit: © Andrew Harrer/Bloomberg via Getty Images
Caption: Cans of Campbell Soup brand productsBy Richard Saintvilus, TheStreet

With shares down more than 6 percent over the past two months, investors are hungry for any news that will heat up Campbell Soup (CPB) stock.

TheStreet.com logo

They didn't get it last week and probably won't for some time.

There are better -- and cheaper -- food-related companies worth your investment, starting with General Mills (GIS).

Campbell's, known for its cans of soups, Pepperidge Farm snacks, V8 products and Spaghettios, missed revenue estimates, which sent the shares lower by another 2.5 percent the day after the earnings report.


The precious metal has suffered as the dollar climbs, geopolitical risks abate and demand from key consumers slows.

By MSN Money Partner 12 hours ago
Gold Bars © Stockbyte/SuperStockBy Sri Jegarajah, CNBC

Gold may drop to $1,200 an ounce, possibly breaching the key support level, thanks to a resurgent U.S. dollar and higher Treasury yields on expectations that the U.S. Federal Reserve could signal tighter policy this week, CNBC's latest survey of strategists, analysts and traders shows.

"In the shorter term I believe gold tests $1,200, trades as low as $1,190 or so, after which the bargain-hunters will come in and move the price back to the $1,240 to $1,250 level," said Anthony Grisanti, President of GRZ Energy, in a Sept. 15 commentary. 

"Geopolitical has been quiet and all major economies are easing one way or another. And that makes the Greenback the strongest buck on the block. My bias for gold is lower."


An announcement about the closely watched competition is expected as early as Tuesday.

By MSN Money Partner 13 hours ago
Credit: © Boeing/AP Photo
Caption: In this artist illustration shows an artist concept of Boeing’s Crew Space Transportation (CST)-100 spacecraft approaching the International Space Station.By Andy Pasztor, The Wall Street Journal

Boeing (BA) appears positioned to beat out two smaller rivals for the bulk of a multibillion-dollar NASA contract to ferry astronauts to and from orbit, according to government and aerospace-industry officials.

An award to Boeing would represent a victory over the newer Space Exploration Technologies Corp., or SpaceX, which had been considered a favorite in many quarters because of its lower costs and nimbler approach. 

The decision on the development of space taxis will be a milestone for commercial space endeavors, locking in unparalleled authority for contractors to develop and operate vehicles with limited federal oversight. An announcement is expected as early as Tuesday.

Tags: BA

The loan is a sweet deal for Eddie Lampert. The company needs the money to get through the holidays.

By MSN Money Partner 13 hours ago
Credit: Gregory Bull/AP

Caption: Eddie Lampert, CEO of Sears

By Nathan Vardi, Forbes

Billionaire Eddie Lampert (pictured), who made his fortune running his ESL Investments hedge fund and is now CEO of Sears (SHLD), is lending the company he runs $400 million to help it get through the key Christmas shopping season.

Shares of Sears fell by more than 6 percent in Tuesday trading to $31.21 after the loan was disclosed. 

The loan is a safe bet for Lampert. Affiliates of Lampert's ESL Investments are making the loan, which is short-term in nature and will be secured by 25 of Sears' properties. The loan carries an interest rate of 5 percent and an upfront fee of about $7 million.

Tags: SHLD

Nearly half of fund managers polled believe the Fed will soon introduce what would be its first rate tightening in 9 years.

By MSN Money Partner 13 hours ago
Credit: © Jin Lee/Bloomberg via Getty Images
Caption: Traders work on the floor of the New York Stock Exchange in New YorkBy Sara Sjolin, MarketWatch

Investors are increasingly expecting the Federal Reserve to raise interest rates in the spring of 2015, with the dollar forecast to rise as a result, according to the Bank of America Merrill Lynch Fund Manager Survey for September.

Nearly half of the fund managers polled, 48 percent, believe the U.S. central bank will introduce what would be its first rate tightening in nine years in the second quarter of next year. That's up from 38 percent last month. Against that backdrop, a net 86 percent of the respondents see the dollar strengthening further against the euro and yen.

"As the first Fed rate hike since 2006 draws closer, we'll see a new U.S. dollar bull market and movement out of bonds," said Michael Hartnett, chief investment strategist at B. of A. Merrill Lynch Global Research, in the release.


Hedge funds' capital raising is causing all kinds of cascading destruction in the go-go names.

By Jim Cramer 15 hours ago

A general view of the Alibaba Group headquarters in Hangzhou, China © Hong Wu/Getty ImagesAlibaba is causing a kind of cascade. But believe me, if funds are going to get all the Alibaba they need on the sheets, they are going to need every penny being sold now.

You layer right on top of that the hedge funds that know how the game is played, and you see the kind of destruction that is being wrought to all of the go-go names.

Remember, you cannot justify owning almost any of these names versus Alibaba. The Chinese Internet company has more earnings power, greater growth and a bigger moat than anything out there until it gets to roughly $100 a share.

TheStreet.com logoGiven that they are talking about $70, which probably means $75, and given how hot the deal is and, therefore, how small the allocation is -- well, you can see for yourself, these names still have to be sold, and sold hard.


Customers say the Internet service provider has threatened to cancel service, but the company says it has no problem with the browser.

By MSN Money Partner 15 hours ago
File photo of the Comcast logo on a television screen (© Elise Amendola/AP Photo)By James Cook, Business Insider

Some users of the anonymous Web browser Tor have reported that Comcast (CMCSA) has threatened to cut off their Internet service unless they stop using the legal software.

Comcast completely denies their claims. In a blog post, the company said, "We have no policy against Tor, or any other browser or software. Customers are free to use their Xfinity Internet service to visit any website, use any app, and so forth."

According to a report on Deepdotweb, Comcast customer representatives have branded Tor "illegal" and told customers that using it is against the company's policies.

Tor is a type of Web browser that, in theory, makes all your Internet activity private. The software routes traffic through a series of other connected Internet users, making it difficult for governments and private companies to monitor your Internet usage. 


Stocks drift lower and bonds are hit as investors await the Fed. Prepare for higher volatility this week.

By InvestorPlace Mon 5:49 PM

Credit: © Scott Eells/Bloomberg via Getty Images
Caption: A trader analyzes stock data on the floor of the New York Stock ExchangeBy Anthony Mirhaydari

With summer vacations fading evermore into distant memory, investors are being faced with increasingly treacherous market conditions in a month that historically has been a poor performer.

On Monday (the six-year anniversary of Lehman Bros. imploding), stocks finished mostly lower as bonds were hit once again heading into Wednesday's critical Federal Reserve policy meeting statement.

In the end, the Standard & Poor's 500 Index ($INX) lost a fraction as it remains below the 2000 level. The Nasdaq Composite Index ($COMPX) lost 1.1 percent as the approaching Alibaba IPO is sucking the wind out of big tech stocks.

Notably, the Russell 2000 ($TOMX) lost 1.2 percent as it dropped below its 50- and 200-day moving averages.


One analyst thinks the struggling electronics chain could be an attractive buy and complement other commerce initiatives.

By MSN Money Partner Mon 4:59 PM
Credit: © Richard Levine/Demotix/Corbis
Caption: A RadioShack store in Greenwich Village, New York on Aug. 27, 2014By Jennifer Booton, MarketWatch

Investors are giving a nod of approval to news Monday that RadioShack's (RSH) chief financial officer has stepped down amid flagging sales.

However, one analyst has an even more drastic solution to the consumer electronic chain’s turnaround woes: a takeover by Amazon (AMZN).


Rob Peck of SunTrust Robinson Humphrey, who has a buy rating on Amazon, said the ongoing convergence of e-commerce and brick-and-mortar retail makes RadioShack an attractive buy for Amazon.

It would complement other local commerce initiatives run by other e-commerce giants, including the same-day delivery services run by eBay (EBAY) and Google (GOOG) and Amazon’s own grocery delivery business.


Venture capitalist Bill Gurley says Silicon Valley is 'taking on an excessive amount of risk.'

By MSN Money Partner Mon 3:12 PM
Credit: © Marek Mnich/Getty Images
Caption: Close up of smartphone on laptop keyboardBy Jay Yarow, Business Insider

Respected venture capitalist Bill Gurley is sounding the alarm on the startup industry.

In an interview with The Wall Street Journal, Gurley says the current environment reminds him of the tech bubble that formed in the late 1990s.

Every incremental day that goes past I have this feeling a little bit more. I think that Silicon Valley as a whole or that the venture-capital community or startup community is taking on an excessive amount of risk right now. Unprecedented since ‘'99. In some ways less silly than '99 and in other ways more silly than in '99.

Gurley adds, "No one's fearful, everyone's greedy, and it will eventually end."



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[BRIEFING.COM] The major averages posted solid gains ahead of tomorrow's policy directive from the Federal Open Market Committee. The S&P 500 rallied 0.8%, while the Russell 2000 (+0.3%) could not keep pace with the benchmark index.

Equity indices hovered near their flat lines during the first two hours of action, but surged in reaction to reports from the Wall Street Journal concerning tomorrow's FOMC statement. Specifically, Fed watcher Jon Hilsenrath indicated that the statement ... More


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