Finance professor Jeremy Siegel still expects the Dow to hit 18,000. But he's concerned about the labor force and commodity prices.
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Chart patterns show the recent price decline is just a correction within a long-term uptrend.
Star investment managers purchased technology and energy stocks while paring financial holdings.
By Chris Stuart, TheStreet
Wall Street's brightest investment minds were required to release their holdings this week, giving mere mortals insight into their strategies.
Here's a breakdown of the top hedge fund and investment managers, and the winning and losing industries and stocks during the second quarter, the latest for which information is available.
In financials, Appaloosa Management, a top-performing hedge fund firm run by David Tepper, cut its bank stock holdings by 6%. Tepper reduced his stake in Bank of America (BAC) by 42%. Citigroup (C) is still Appaloosa's biggest holding, as the hedge fund holds 7.2 million shares. In the quarter, the fund trimmed the stake by 5%.
Consumer spending, corporate spending and the game-changing iPad are making life difficult for the veteran PC maker these days.
By Jeff Reeves, Editor, InvestorPlace.com
Dude, who's getting a Dell (DELL) these days? From recent financial reports, it looks like only a precious few consumers.
Founder and CEO Michael Dell announced Tuesday a meager growth projection of just 1% to 5% on the year, and Dell shares took a tumble. Shares were off about 8% Wednesday morning.
We'll see lower stock prices until large companies say the downturn is only temporary.
So far, Urban Outfitters (URBN) is in a class by itself in saying that the last 10 days leading up to its conference call were disastrous in at least one of its divisions, Anthropologie. I am still reeling from that startling statement and have tried to back it up with others to be sure that URBN isn't something unto itself.
I didn't get it from Home Depot (HD), which didn't have anything negative to say at all. Last night, when talking to Steven Sadove, the CEO of Saks (SKS), I heard that the days leading up to the quarter have been business as usual, consistent with excellent metrics. I didn't hear it from Howard Schultz on Tuesday either, with Starbucks (SBUX) seeing no slowdown.
But last night on the Dell (DELL) call we got lots of evidence that consumer demand is "weaker and a bit more uncertain," which translated into a hideous outlook: revenue growth going from a 5%-9% increase, totally respectable, to 1%-5%, completely unacceptable, hence why we are seeing so much selling.
Their Urban Outfitters moment, reiterated several times like on the URBN call, specifically identifies "the last few weeks" as the time frame.
The projections from South America's largest McDonald's franchiser sound great -- until you look at the inflation battles ahead.
There's a lot riding on the rest of the year.
By Rick Aristotle Munarriz
It' going to be an eventful next few months for Sirius XM Radio (SIRI), and most of it should be good. Let's go over a few days that shareholders should already be looking forward to in the coming months.
Sirius XM investors may not take Clear Channel (CCMO) seriously, but the terrestrial giant is investing a lot of might and star power into promoting an upgrade of its iHeartRadio app.
Next month, Clear Channel is hosting a two-day music festival in Las Vegas to promote the streaming application's update. Not so humbly self-billed as "the biggest live music event in radio history," magnetic recording stars including Lady Gaga, Coldplay, and Jay-Z are scheduled to take the stage to show the terrestrial radio operator some promotional love. According to Clear Channel, the music festival sold out 10 minutes after tickets were put on sale to the general public in July.
Standard & Poor's analysts cut their rating and price target on Google after looking more closely at the Motorola Mobility deal.
That $12.5 billion price was a surprising 63% premium over Friday's close. And while there are certainly some pros to the deal -- boosting Android's momentum and cutting out the middle man -- analysts are taking a closer look here.
There is greater risk to the company and the stock now, wrote Scott Kessler, equity analyst from Standard & Poor's. "Despite MMI's extensive and valuable patent portfolio, we are not sure it will protect Android from IP issues," he added in his note, reported by The Wall Street Journal.
The soccer team is reportedly considering a public offering in Singapore, perhaps to help its heavy debt load.
The U.K. soccer team is reportedly looking to raise as much as $1 billion through an initial public offering in Singapore by year's end. Two-thirds of the team's fan base is in Asia, so it's no surprise that its American owners are looking at Singapore, The Wall Street Journal reports.
But before you go jumping into some shares, look at the team's financials in the same way you would any other major company. It has nearly $1 billion of net debt, The Journal reports. It earned $47 million last year before interest and tax, but its interest expense was $119 million.
Lower volatility and stronger economic data set the stage for additional gains. But there are likely to be bumps along the way.
The crazy crisis environment of the past few weeks has calmed somewhat. A sense of normalcy is returning. Stocks are up more than 8% off their lows. Volatility continues to be drawn out of the system like snake venom from a wound. Emotions like fear and panic are fading, giving way to a more reasoned approach.
Even the economic data are beginning to surprise investors to the upside again. Industrial production in July jumped 0.9% vs. the consensus estimate of 0.5%. June's result was also revised upward. Manufacturing is coming on strong, thanks to a rebound in auto production. Other positive data points include a drop in jobless claims, a rise in labor income and an increase in loan growth as credit standards are eased.
Nerves are still raw, however. Witness Tuesday's market drop, driven by renewed concerns over the eurozone. For investors, the question is: Now what?
Saying that politicians from both parties have failed to lead, Howard Schultz urges a boycott where it counts.
Howard Schultz, the CEO of Starbucks (SBUX), says top bosses across the country should stop donating to political campaigns. Taking away that money might pressure lawmakers to fix the growing budget deficit.
"I am asking that all of us (forgo) political contributions until the Congress and the President return to Washington and deliver a fiscally disciplined long-term debt and deficit plan to the American people," he wrote in an email Monday night to business leaders.
The presidential candidate says the Federal Reserve would be playing politics if it printed more money before the election.
Texas Gov. Rick Perry, campaigning for president this week, said the Federal Reserve's printing more money between now and November 2012 would be like an act of treason.
"If this guy (Bernanke) prints more money between now and the election," Perry said, "I don't know what y'all would do to him in Iowa, but we -- we would treat him pretty ugly down in Texas. Printing more money to play politics at this particular time in American history is almost treacherous -- or treasonous in my opinion."
Greenlight Capital, in trying to reverse losses, short-circuits its strategy by buying dud stocks.
By Robert Holmes, TheStreet
It's hard to tell who's having a tougher year, Einhorn or the New York Mets, the baseball team in which he's seeking to buy a $200 million stake. Einhorn's hedge fund fell 5% through the second quarter, prompting him to shake up his investments. The Mets are 20 games back in the standings in the National League East division.
Unfortunately, Greenlight Capital's four new positions have likely been unprofitable for Einhorn, who was brutalized by Yahoo (YHOO). In a letter to shareholders last month, Einhorn disclosed that Greenlight Capital sold out of its stake in Yahoo at a loss after the Internet search giant's dispute over the ownership transfer of Alibaba's online-payments business Alipay.
Only 4 sectors are higher for the year, but analysis indicates that a few are likely to outperform in the months ahead.
Billionaire investor Warren Buffett starts a stake in Dollar General, while hedge fund manager William Ackman boosts his company's position in Family Dollar.
By Jeanine Poggi, TheStreet
Hedge fund managers are getting bullish on dollar stores. Should you?
William Ackman's Pershing Square Capital increased its stake in Family Dollar Stores (FDO) as of June 30, according to a regulatory filing.
Ackman now holds about 11.1 million shares of Family Dollar, valued at $6.4 billion, from about 10.9 billion shares prior to June.
In May, Ackman became the largest shareholder of the dollar store, saying the company was poised for gains due to the potential of a buyout.
The famed investor turned his portfolio inside out in the second quarter, with big buys and even bigger sells.
By Frank Byrt, TheStreet
A few of the largest acquisitions for Soros Fund Management were Golar LNG Partners (GLNG), which operates a fleet of liquid-natural-gas carriers; computer giant International Business Machines (IBM); Semiconductor HOLDRs (SMH), an exchange-traded fund that invests in semiconductor makers; VMware (VMW), a provider of virtualization software for cloud-computing systems; and SandRidge Energy (SD), an oil and natural-gas company.
The fund closed out of its positions in Internet search engine Google (GOOG), at $68 million; luxury-goods maker Coach (COH), a $46 million position; gold miner Novagold Resources (NG), which was a $45 million stake; Power-One (PWER), a maker of power-conversion and power-management products, in what had been a $25 million stake; and a $25 million position in Tenet Healthcare (THC), an owner and operator of health care facilities. Those are just a few of the largest sell-offs.
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[BRIEFING.COM] At midday, the major averages trade mixed. The Dow (+0.1%) holds a slim gain while the Nasdaq (-0.4%) hovers in the red. For its part, the S&P 500 sits on its flat line.
The stock market began the trading day on a higher note, but the early strength faded quickly. The upbeat open took place after it was reported that February nonfarm payrolls surpassed estimates (175K versus Briefing.com consensus 163K). Although the headline number surprised to the upside, it ... More
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