Stocks have rallied 177%, and while calling a top is the easiest thing to do, it might not be the most accurate, Cramer says.
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Earnings and revenue growth fail to meet investor expectations.
By Lauren Tara LaCapra, TheStreet
Citigroup (C) shares were down sharply Tuesday after the bank released fourth-quarter earnings that fell far short of Wall Street expectations.
Though Citi earned just half of what Wall Street was expecting for the fourth quarter, much of the decline came from an accounting oddity that costs financial companies more when their own credit conditions improve. Many analysts hadn't factored such a charge into their estimates.
Still, Citi shares were falling 5.7% to $4.84 in midday trading, ahead of a conference call with management.
The New York bank said it earned $1.3 billion last quarter, or 4 cents per share, compared with a net loss of $7.6 billion, or 33 cents per share, a year ago. The average analyst had expected Citi to earn 8 cents per share, on average, according to Thomson Reuters. Revenue of $18.4 billion fell far short of the average expectation for $20.5 billion as well.
Shares plunge 13% after the bookseller reportedly hires bankruptcy and restructuring lawyers and announces further job cuts.
By Jeanine Poggi, TheStreet
Borders (BGP) stock was tanking Tuesday after reports surfaced over the weekend that the company has hired bankruptcy and restructuring lawyers.
As the company continues talks to secure a $500 million credit line, it has also hired the law firm Kasowitz, Beson, Torres & Friedman, The Wall Street Journal reported, citing sources familiar with the matter. But the sources said Kasowitz's job is to keep Borders out of bankruptcy court.
Shares of Borders were falling 13.1% to 92 cents in midday trading.
Kasowitz met with publishers last week to pitch them a plan to defer payments and is in talks with GE Capital about providing a new revolving credit facility, the source told the Journal.
After taking a beating last year, SunPower is ready to shine in 2011.
For today's pick of the day, we turn to Alyce Lomax. Alyce is running a real-money socially responsible portfolio for us, which so far is making money while also making us feel good about ourselves. Which making money tends to do anyway, but I digress.
Rex Moore, Motley Fool Top Stocks editor
Renewable-energy stocks are solid contenders for a socially responsible portfolio. And while many stocks rallied in 2010, solar stocks took a real beating. This presents an opportunity to profit off others' pessimism and buy a promising green-energy stock at a low, low price for my SRI-focused Rising Stars portfolio.
After weighing alternatives like low-price solar leader First Solar, I settled on one choice: SunPower (SPWRA).
San Jose, Calif.-based SunPower, a subsidiary of Cypress Semiconductor until late 2008, has a holistic approach to the solar-panel business. It targets the entire gamut of customers seeking green-energy alternatives: governments, corporations, utilities, homebuilders and even homeowners.
Delivery, originally scheduled for May 2008, is now put off until later this year.
By Ted Reed, TheStreet
Boeing (BA) has once again delayed delivery of the 787.
First delivery is now expected in the third quarter. Most recently, first delivery was scheduled for the current quarter. The original date for first delivery was May 2008, so the plane is now more than three years behind schedule.
The new date reflects the impact on an in-flight fire during testing in November. It includes time required to produce, install and test updated software and new electrical power-distribution panels in the flight-test and production airplanes, Boeing said.
"This revised time line for first delivery accommodates the work we believe remains to be done to complete testing and certification of the 787," said Scott Fancher, the vice president and general manager of the 787 program. "We've also restored some margin in the schedule to allow for any additional time that may be needed to complete certification activities."
The iPhone maker's succession plan and product road map may not be enough to allay investors' concerns.
By Scott Moritz, TheStreet
The Apple chief said Monday that he would take a medical leave for an unspecified reason and that COO Tim Cook would head the company as the day-to-day manager in the interim. The shares were trading at $341, down 2%, this afternoon.
The move comes as Apple gets set to release its quarterly results later today. While analysts expect Apple to post blowout numbers on strong sales of iPads, iPhones and Macs, the stellar financial performance will likely be overshadowed by worries about the extent of Jobs' illness.
The financial industry will be front and center during this shortened trading week.
By Don Dion, TheStreet
Here are the five exchange-traded funds to watch this week.
The financial industry will be front and center during this shortened trading week as a combination of Wall Street giants and smaller regional players release their quarterly earnings reports. Notable names on tap include Bank of America (BAC), Goldman Sachs (GS), Fifth Third Bancorp (FITB), U.S. Bancorp (USB) and Wells Fargo (WFC).
KBE is an ideal product for investors looking to take a broad approach to tracking the financial industry. The fund is topped by industry leaders but sets aside a considerable portion of its portfolio for smaller, more volatile regional institutions.
In 2010, financials faced pressure from Washington as lawmakers sought to construct sweeping reform legislation. With the bill completed and passed, it will be interesting to watch how banks react in the new year.
If you're afraid to get into the market after its big run, consider these high-quality underperformers.
This market is driven by fear. It's the fear that everyone has of being the last guy in the pool, of looking ridiculous to customers, friends or relatives. They just can't come in "up here," and that's why we don't have a lot of noninstitutional participation.
Worse, judging by the horror stories, many people seemed to have been hiding in leveraged municipal bond funds or tax-exempts of the dubious variety because they were so afraid of stocks. They are "all in," but they are in the wrong pool!
By the time they give up and get in, the water will most certainly not be fine.
The company's COO has been running operations since 2007 and is the obvious choice to become its next chief executive.
Why? Cook has been running the day-to-day business at Apple since 2007 and has made some important changes. He has also served as Apple's chief executive twice -- in 2004, after Jobs had pancreatic-cancer surgery, and in 2009, when Jobs took a five-month leave to recover from a liver transplant.
Cook is in the spotlight today after Jobs announced he is taking another medical leave. The odds are increasing that Cook will be the anointed one if Jobs ever steps down as chief executive. So who is this guy, anyway?
Venti too small? The mondo 31-ounce Trenta will help the coffee king compete with McDonald's and convenience stores.
At first the Trenta will be available only for iced coffee and iced tea. It's a monstrously large serving, about 7 ounces larger than the Venti already available for iced drinks. It'll cost about 50 cents more.
"Trenta" is the number 30 in Italian, so it's full speed ahead for Starbucks to Quaranta (40) and Cinquanta (50). Just an FYI: The average adult human bladder can hold about 17 ounces.
The tech giant's CEO is taking another medical leave. But this time, the company seems well-prepared to march on.
The message, sent by e-mail to Apple (AAPL) employees, said that although he's leaving to focus on his health, he will continue as chief executive. Chief operating officer Tim Cook will run day-to-day operations. "I love Apple so much and hope to be back as soon as I can," Jobs wrote.
Apple's shares are likely in for a significant drop when the markets reopen Tuesday. They're already falling overseas, down 7.5% today in Frankfurt. If the stock loses 7.5% when the markets open Tuesday, that would wipe out nearly all the 8% gain the stock saw in 2010.
The market continues its ascent. Where will the action be this week?
I’ve got news for you traders out there: buy and hold investing is making a comeback in a big way in 2011.
While moving in and out of positions can be profitable from time to time traders risk missing big moves by standing on the sidelines.
In my estimation investors will be best served by sticking to their guns. Stay in the market no matter the circumstance as one never knows when big returns will follow.
Case in point is the early action in 2011. While it would be easy to say a correction is due and as such reduce exposure to stocks, doing so would have been the wrong move.
Stocks as measured by the S&P 500 added another 1.7% to the upside last week. I bet there were many a traders that missed out on the gains.
Don’t make the same mistake. This week investors can ride the wave of the homebuilding sector with the SPDR S&P Homebuilder ETF (XHB).
The recent pullback in gold is an opportunity to build a position in this stock.
China was supposed to restrain lending last year, but the numbers show huge loan blowouts.
The famous billionaire firmly believes in long-term holdings, diversification and dividends.
By Don Dion, TheStreet
During his multidecade career, Warren Buffett has captured the minds of followers through an interesting mix of wildly successful investments and down-home, folksy charm.
In the absence of self-penned autobiographies or memoirs, authors have spent countless hours attempting to uncover the characteristics that make the Omaha, Neb., native so successful in business.
An examination of Buffett's Berkshire Hathaway (BRK.A) empire reveals three notable qualities that, when internalized, can help investors benefit in times of economic prosperity and protect them in the event that the markets turn south.
The company played around with 2 key measurements, making one fund look more stable than it really was.
An investigation and charges from the Securities and Exchange Commission show an altogether different side of Schwab's company. Schwab did some bad things with one mutual fund, its YieldPlus, and two executives were charged with fraud and other securities violations.
The lesson from YieldPlus is a good one for any investor. Here's how Schwab went from "on our side" to misleading clients:
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The US isn't strong enough not to care about them now. But one day it will be.
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.
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[BRIEFING.COM] The major averages have slid to fresh lows after failing to retake their flat lines. The Russell 2000 (-0.9%) continues trailing other indices while the S&P 500 trades lower by 0.5%.
The industrial sector (-1.0%) is the weakest performer at this juncture with Boeing (BA 125.30, -3.24) trading lower by 2.5% after a 777 operated by Malaysia Airlines vanished over the South China Sea during the weekend. Boeing's notable weakness is also contributing to the ... More
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