Louis' Blog Archive
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Friday's Job Numbers Will Overshadow Today's
January 6, 2010
Wall Street is moving sideways today after setting a new 15-month high earlier in the week, as investors got the jitters after unemployment numbers came in mixed. However, Friday's labor numbers will be the real market-mover this week.
Happy New Year!
December 31, 2009
After an ugly start, this was a great year for stocks.
Demand for Crude Fell Last Week
December 30, 2009
Refineries are now running at over 80% capacity.
Consumer Confidence Rises Again
December 29, 2009
Levels are still very low, but this key gauge of consumers is up for the second straight month. This bodes very well for some of the stocks on our Buy List.
Consumer Confidence Rises Again
December 29, 2009
Levels are still very low, but this key gauge of consumers is up for the second straight month. This bodes very well for some of the stocks on our Buy List.
Consumer Confidence Rises Again
December 29, 2009
Levels are still very low, but this key gauge of consumers is up for the second straight month. This bodes very well for some of the stocks on our Buy List.
Consumer Confidence Rises Again
December 29, 2009
Levels are still very low, but this key gauge of consumers is up for the second straight month. This bodes very well for some of the stocks on our Buy List.
Consumer Confidence Rises Again
December 29, 2009
Levels are still very low, but this key gauge of consumers is up for the second straight month.
Strong Holiday Sales Lift Stocks
December 28, 2009
Retails sales were up 3.6% this holiday season.
A Lesson in Stay-the-Course Investing
December 23, 2009
One hedge fund manager made $2.5 billion by betting on a recovery.
Q3 GDP Revised Down to 2.2%
December 22, 2009
The market is digesting the GDP report and the existing home sales report.
Earnings Roundup
December 17, 2009
Today we got earnings reports from Oracle, General Mills, FedEx and others.
Leading Economic Indicators Increase for Eighth Straight Month
December 17, 2009
Today's report signals that the economy will continue to improve during the first half of 2010.
The Fed Keeps the Language the Same
December 16, 2009
The central bank will keep rates low for "an extended period."
Best Buy Beats on Earnings But Shares Fall
December 16, 2009
The earnings report was good, but margins are expected to contract this quarter.
Core Inflation Remained Tame in November
December 16, 2009
Consumer prices rose 0.4% last month, but excluding food and energy, prices were unchanged.
Preview of this Week's Fed Meeting
December 15, 2009
I expect Bernanke & Co. to keep rates low.
Exxon to Buy XTO for $31 Billion
December 14, 2009
The energy giant is making a big move into natural gas.
Citigroup to Exit TARP Program
December 14, 2009
Citi was the last major bank still in the TARP program.
Retails Sales Report Lifts Stocks
December 11, 2009
Retails sales more than doubled expectations.
Medifast Benefits from Slim Fast Recall
December 9, 2009
Shares of Medifast have tripled for us since I recommended it in July.
The Greek Stock Market Tumbles
December 8, 2009
Investors are dumping Greek stocks and bonds as there are concerns whether the country can meet its debt payments.
Bernanke Addresses Frequently Asked Questions
December 7, 2009
Ben Bernanke discusses where the economy is headed.
TARP Won't Lose as Much as Originally Thought
December 7, 2009
The TARP program will "only" lose $42 billion.
Stay Away from Toll Brothers
December 4, 2009
The homebuilder isn't out of the woods just yet.
Del Monte Jumps on Earnings
December 4, 2009
Del Monte Foods' (DLM) earnings jumped 24% over last year and the company raised its full-year outlook, sending shares higher. This is no surpriseto my eletter readers, who already have profited from my buy recommendation for DLM.
The November Jobs Report
December 4, 2009
The unemployment drops to 10%.
GE Sells NBC to Comcast
December 3, 2009
The S&P 500 hit a fresh bull-market high this morning.
Weak Dollar Leads Mercedes to Build Cars Here
December 2, 2009
The falling U.S. dollar is starting to have major consequences for the economy.
Green Mountain Raises Bid to $35 Per Share
December 2, 2009
The bidding war continues. Let's see if Peet's responds.
Peet's Strikes Back
December 1, 2009
The bid for Diedrich now stands at $32.50.
December Starts with a Rally
December 1, 2009
The market is higher this morning on news that AIG has paid back $25 billion in debt to taxpayers.
Chicago PMI Lifts Stocks
November 30, 2009
The stock market has turned around this morning thanks to a good Chicago PMI.
Emerging Market IPOs Soar
November 30, 2009
Returns for initial offerings in emerging markets are beating ones in developed markets by 15 to 1!
Happy Thanksgiving!
November 25, 2009
I want to wish everyone a Happy Thanksgiving...
Economic News Turns Mostly Positive
November 25, 2009
Economic news turns mostly positive just before the Thanksgiving Day holiday.
Existing Home Sales Soar
November 23, 2009
Sales of existing homes rose to their highest level in nearly three years.
A Bidding War Erupts for Diedrich Coffee
November 23, 2009
Green Mountain outbids Peet's -- and Peet's responds!
The Latest at Navellier Growth
November 20, 2009
Here's at some of my latest comments about everything from investing in China to solar stocks to the best ETFs to buy right now.
Dell's Lousy Quarter
November 20, 2009
The computer-maker saw its earnings plunge by 54%.
Continue to Avoid Netease.com
November 19, 2009
NTES shares have now pulled back more than 10% from a 52-week set in late September. I told my Global Growth subscribers to sell this stock in early October and lock in a dramatic 67% gain. We certainly made the right choice with our sale, since it protected our big profits.
Geithner Sees More Economic Growth
November 19, 2009
The Treasury Secretary sees the economy growing in this quarter and into next year.
CPI +0.3%
November 18, 2009
Today's CPI report was in line with expectations.
Heat Continues to Boil
November 17, 2009
Producer Prices and Target's Earnings
November 17, 2009
Target's earnings and today's PPI report are related. Here's why.
SmartHeat Soars 34%
November 16, 2009
The China-based firm's earnings doubled over the past year.
GM Posts $1.15 Billion Loss
November 16, 2009
Over the last five years, GM has lost $88 billion.
Trade Deficit Widens; Eurozone Out of Recession
November 13, 2009
After five straight declines, the trade deficit grew in September.
ESPN Gives Disney a Boost
November 13, 2009
Disney posts a nice earnings gain, but I want to see more evidence of a turnaround.
Walmart's Earnings Top Forecasts
November 12, 2009
Walmart posts improving earnings, but it's due to cost control not growth.
Green Mountain's Earnings
November 11, 2009
The coffee stock beats estimates but guides below the Street for this quarter.
The Business Boom in Brazil
November 11, 2009
"The biggest concentration of billion dollars in investment per square kilometer in the world."
Weight Watchers Is Still a Sell
November 10, 2009
The weight-loss company beat earnings, but it's still not my top stock in the field.
The 2009 Gold Rush
November 10, 2009
The Indian Fed buys 200 tons of gold.
Kraft Makes Hostile Bid for Cadbury
November 9, 2009
The war for the candy stock is starting to get rough!
The Debt Clock
November 9, 2009
Here's a look at our financial commitments.
Unemployment Reaches 10.2%
November 6, 2009
The jobless rate reaches a 26-year high.
Hansen Misses Earnings
November 5, 2009
The Monster Energy drink stock falls three cents short of Wall Street's consensus.
Starbucks Raises Guidance
November 5, 2009
The coffee-shop chain continues its remarkable turnaround.
Our 145% Profit in Medifast
November 5, 2009
Shares of the health and diet stock are at another 52-week high.
Looking at Insurance Stocks; Earnings from Allstate and Prudential
November 5, 2009
Insurance companies are posting major gains from last year thanks to much better weather.
Gold Continues to Rise, How to Play the Rally
November 5, 2009
The yellow metal is close to $1,100 an ounce. Here are some of my favorite gold stocks.
Productivity Soars to Six-Year High
November 5, 2009
Worker productivity soars 9.5%.
The Fed Leaves Rates Unchanged
November 4, 2009
Here's today's policy statement:
Stocks and Gold Are Up this Morning
November 4, 2009
Stocks are up slightly ahead of the Fed's announcement.
Peet's to Buy Diedrich Coffee
November 3, 2009
Buffett Buys Burlington Northern
November 3, 2009
The legendary investing tycoon is hitting the rails!
Navellier Seminars
November 2, 2009
I'll be speaking this week near Portland and Seattle.
Ford Earns Surprising Profit
November 2, 2009
The car company made $1 billion last quarter.
CIT Group Files for Bankruptcy
November 2, 2009
The 101-year-old company is now the fifth-largest bankruptcy in U.S. history.
Talking Stocks on Fast Money
October 30, 2009
Here's my appearance on Fast Money yesterday.
More Telecom Earnings
October 29, 2009
Here's my take on the earnings news from Motorola and Sprint.
Office Depot Vs. OfficeMax
October 29, 2009
Difficult times for the office supply stores.
GDP +3.5%
October 29, 2009
After four straight down quarters, GDP is finally rising again.
Seven Housing Stocks to Sell
October 28, 2009
We got more bad news on housing today, but here are seven housing stocks that no one should own.
Apollo Shares Take Hit on SEC Probe
October 28, 2009
Apollo Group had a very good earnings report but the stock is down on news that the SEC is looking into its accounting.
Strong Earnings for Peet's Coffee
October 28, 2009
Peet's Coffee just came out with great earnings and raised guidance. Find out my top buys among coffee stocks.
The Emerging Market for Small Nuclear Reactors
October 27, 2009
Japan's major nuclear reactor manufacturers have begun developing small nuclear power systems. Toshiba, Mitsubishi and Hitachi have all gotten involved.
Housing Is Still Hurting
October 27, 2009
Today's Case-Shiller Index showed that home prices rose for the third straight month, but are still way down from a year ago.
AMGN a Victim of Investor Sentiment
October 26, 2009
Amgen looks like a great stock on paper, and has outstanding fundamental grades. So why did Wall Street just decide to panic and dump shares of this stock if all the numbers indicate the company is doing well?
Amazon, Ebix and Diedrich Coffee Continue to Rally
October 26, 2009
Stocks started out strong today, we even cracked 1,090 again for the S&P 500, but we're now back in the red.
A Look at the Week Ahead
October 26, 2009
This will be another busy week for earnings, plus Wall Street is eagerly waiting for Thursday's GDP report.
Verizon Delivers Earnings Surprise
October 26, 2009
Wall Street is pleased over Verizon's earnings beat but I'm still not impressed.
More Earnings; Hershey, OxyPete and Alexion
October 22, 2009
The Dow is back over 10,000 this afternoon thanks to more good earnings news.
Leading Economic Indicator at 2-Year High
October 22, 2009
Today's report on leading economic indicators were up again, although jobless also rose. See my latest articles at Navellier Growth.
McDonald's Profits Rise
October 22, 2009
The fast-food stalwart had a decent earnings report for the third quarter. Here's my take.
The Dollar Break $1.50 Against the Euro
October 21, 2009
The U.S. dollar continues its freefall.
Bank Earnings: Morgan Stanley, Wells Fargo, Northern Trust, KeyCorp, US Bancorp
October 21, 2009
Today is a big day for bank earnings. Here's a look at some top reports.
Producer Prices Plunge -0.6%
October 20, 2009
Today's PPI report shows wholesale deflation, but next month's report may be quite different.
Badmouthing the Greenback
October 20, 2009
My take on why it's a near impossibility that the U.S. dollar will firm up anytime soon.
Apple's Profits Soar
October 20, 2009
Apple stunned Wall Street by reporting earnings growth of 47%.
The Coffee Surge
October 19, 2009
Here are two outstanding coffee stocks.
Navellier Seminars
October 19, 2009
I'm holding two seminars in North Carolina this week.
What's on Tap this Week
October 19, 2009
This is going to be a big week for corporate earnings reports.
Industrial Production Rises Again
October 16, 2009
The Federal Reserve reports that industrial production rose for the third straight month.
Medifast and Green Mountain Coffee Named Best Small Companies
October 16, 2009
Two of my top-rated Emerging Growth stocks are recognized by Forbes.
Now the Bad Earnings
October 16, 2009
The market is under pressure this morning from a few poor earnings reports.
Thursday Earnings Roundup
October 15, 2009
Here's a rundown of some of today's earnings reports.
Earnings Outlook Wednesday After-Hours
October 15, 2009
Here's my CNBC appearnce from Wednesday at 5. I'll be on twice a day during earnings season.
The Fed Is Divided on Inflation
October 14, 2009
The latest Fed minutes show division at the central bank on inflation. My take is that stagflation will make a comeback.
Earnings Outlook #3
October 14, 2009
This is Wednesday's earnings discussion on CNBC.
Intel Leads the Market Higher
October 14, 2009
The Dow is close to 10,000 this morning thanks to Intel's earnings report.
Earnings Outlook on CNBC
October 13, 2009
Here I am on CNBC discussing the third-quarter earnings outlook.
GM Will Sell Hummer
October 13, 2009
General Motors has reached a deal to sell its Hummer brand to a Chinese company.
Top Stories at Navellier Growth
October 13, 2009
Here are some major items impacting the markets.
Cisco to Buy Starent for $2.9 Billion
October 13, 2009
Cisco makes its second big merger move of the month.
CNOOC Takes on ExxonMobil
October 12, 2009
Exxon may no longer be the big kid on the block in the world oil market.
Wall Street Makes New 2009 Highs
October 12, 2009
The bull still charges. The major indexes are at new highs this morning.
OxyPete Gains from Citigroup Fire Sale
October 9, 2009
Occidental Petroleum picks up Citi's highly profitable energy trading unit.
A Closer Look at the Weak Dollar
October 9, 2009
Here's what it means when the U.S. dollar gets weak.
Earnings From Marriott and Pepsi
October 8, 2009
There are more earnings reports coming in and gold continues to rally.
Make Sure You Have Enough International Exposure
October 8, 2009
Here's part of a recent interview I did with SmallCapInvestor.
Alcoa's Earnings Plunge but Top Expectations
October 7, 2009
Alcoa's earnings plunge from 33 cents a share to just four cents a share, but it still beat the consensus forecast.
Monsanto Beats the Street, But Don't Be Too Impressed
October 7, 2009
Monsanto beats earnings, but the stock is still a Sell.
Gold Soars to New All-Time High
October 6, 2009
After 19 months, gold has finally made a new all-time high.
Brocade Puts Itself Up for Sale
October 5, 2009
Shares of Brocade are up nicely today as the company will put itself up for sale.
Rio Wins 2016 Olympics
October 2, 2009
Rio will host the Olympics, so what does it mean from Brazilian stocks?
My Worries about the Job Market
October 2, 2009
With today's jobs report depressing Wall Street, here are my thoughts on what will impact the jobs market going forward.
The September Jobs Report
October 2, 2009
The hoped-for turnaround in the jobs market didn't happen last month.
Mixed Economic News Today
October 1, 2009
The market is digesting higher jobless claims but also improved consumer spending reports.
Looking Ahead to Friday's Employment Report
September 30, 2009
Today's GDP report was much better than expected.
The Stock Market Is Cleaning House
September 29, 2009
The market is preparing itself for a very strong earnings season.
$3.5 Trillion In Cash on the Sidelines
September 28, 2009
There's still plenty of cash to fuel this rally.
Bet On Better Earnings
September 28, 2009
Here's my appearance on Bloomberg TV.
Shanda Games Goes Public
September 25, 2009
Shanda Interactive spun-off its Shanda Games unit today in the biggest IPO of the year.
Shares of RIMM Down Sharply
September 25, 2009
Shares of Research In Motion have been down by as much as 15% today due to a disappointing forecast.
Jobless Claims Fall
September 24, 2009
Today's report on jobless claims showed a fall, but I expect the unemployment rate to continue to rise.
The Fed Leaves Rates Alone
September 23, 2009
The FOMC decided on no change to current interest rate policy.
Autozone's Earnings Rise 11%
September 23, 2009
Autozone is down today although the company reported healthy earnings growth.
China's Greentech Revolution
September 22, 2009
China's green technology market has the potential to grow to $1 trillion by 2013.
Inflation on the Rise
September 22, 2009
Last week's economic reports show that inflation is still a concern.
The Dollar Is the New Yen
September 21, 2009
For the carry-trade, the U.S. dollar has replaced the yen.
Amazon: Wal-Mart of the Web
September 21, 2009
The New York Times asks, "Can Amazon Be Wal-Mart of the Web?"
Top News Today
September 21, 2009
Here are some important stories impacting the stock market today.
Tessera Guides Higher
September 17, 2009
Tessera Technologies is rallying today on news of higher revenue guidance.
Amazon Soars 8.6%
September 17, 2009
Shares of Amazon had a strong rally yesterday. Here's my take.
Consumer Inflation and Industrial Production
September 16, 2009
We got a very good report on industrial production.
PPI and Retail Sales
September 15, 2009
We got very good news this morning on retail sales.
President Obama's Speech on Wall Street
September 14, 2009
Here's the text of the speech President Obama gave at Federal Hall on Wall Street today.
"Obscene and Growing"
September 14, 2009
John Dorfman quotes me today at Bloomberg.
Wall Street Fears a Trade War
September 14, 2009
Wall Street is lower in today's trading on fear of an emerging trade between the U.S. and China.
Preview of the October Blue Chip Growth Issue
September 14, 2009
Here's a quick preview of what I'll have to say in the October issue of Blue Chip Growth.
Consumer Sentiment Improves
September 11, 2009
The latest reading on consumer sentiment shows a big increase from last month, and it was well ahead of expectations.
The Recession May Finally Be Over
September 10, 2009
Yesterday's Beige Book report from the Federal Reserve shows that economic activity is stabilizing or improving in the vast majority of the country.
Inflation Shifts Front and Center
September 9, 2009
Now that the economy is finally showing signs of improvement, economists are beginning to worry about inflation.
A Lost Decade
September 8, 2009
Over the last ten years, the economy has managed to create a net loss of over 200,000 jobs.
Kraft Makes Bid for Cadbury
September 8, 2009
Kraft Foods stunned Wall Street by making a $16 billion bid for Cadbury PLC.
The August Jobs Report
September 4, 2009
Today's jobs report showed that the unemployment rate jumped to 9.7% for August.
Uncle Sam's Debt Is Becoming Too Much to Bear
September 2, 2009
The White House recently said the national debt will grow by $9 trillion over the next decade, up from its previous forecast of $7 trillion.
Ebix Hits New High
September 1, 2009
In just six months, Ebix is up 190% for us!
Disney (DIS) in Buy Marvel (MVL) is $4 Billion Stock Deal
August 31, 2009
Shares of Marvel are up as much as 26% today.
Don't be Tempted by Dell and Intel
August 28, 2009
Both Dell and Intel are up today, but I still have them rated as Sells.
GDP & Jobless Claims
August 27, 2009
The market is digesting this morning's report on Q2 GDP and last week's jobless claims.
Aeropostale (ARO) Breaks $40
August 26, 2009
Shares of the teen retailer continue to rally.
The Cloud over the Sunshine State
August 26, 2009
The economy and housing market in Florida are in rough shape and may not get better soon.
Obama Nominates Bernanke
August 25, 2009
It's official -- Obama is going to renominate Bernanke.
How a Weaker Dollar Will Fix the Economy
August 25, 2009
The U.S. dollar was weak again last week and that's good news for the economy.
Navellier Seminars
August 24, 2009
I'm holding two Navellier Seminars in the Midwest this week.
Report from Jackson Hole, Wyoming
August 24, 2009
The Federal Reserve held its annual meeting last week in Jackson Hole, Wyoming and Ben Bernanke sounded optimistic.
Leading Economic Indicators Up…Retail Sales Down
August 24, 2009
So far, this is a business-led recovery, with earnings increases based on cost-cutting more than on consumer sales.
Obama Lowers Deficit Estimate
August 20, 2009
Finally some good news on the budget. It looks like the deficit is somewhat less massive than previously thought.
Looking at the Dole Food IPO
August 19, 2009
The market for initial public offerings (IPOs) is going to get a big test when Dole Food jumps on to the publicly-traded market.
The Market for New Vehicles Is Heating Up
August 18, 2009
The Cash for Clunkers program has caused demand for new vehicles to soar.
Southwestern Energy Remains a Solid Buy
August 18, 2009
Even though supply continues to outpace demand for crude oil and natural gas, energy stocks like Southwestern Energy continue to be good buys.
Consumers Are Grumpy
August 17, 2009
The market looks to open lower this morning and one reason is a poor earnings report from Lowe's.
Outlook for Third-Quarter GDP
August 14, 2009
We're already at the mid-point of the third quarter. Here's my take on future economic growth.
July CPI and Industrial Production
August 14, 2009
The market got two important economic reports this morning.
Weak Retail Sales
August 13, 2009
Wall Street is up slightly this morning, no thanks to weak retail sales numbers.
The Improving Environment for Earnings
August 12, 2009
Although Wall Street thinks that Q3 earnings will be negative, I think they'll finally break into positive territory. Here's why.
China's GDP Shows Strong Growth
August 12, 2009
China's economy continues to grow. In fact, it's probably growing much faster than official estimates.
Crude Oil Prices Rise Due to Weakening Dollar
August 11, 2009
The price for oil has been rising even though the world is awash in crude oil. Expect to see even higher prices as the dollar gets weaker.
Productivity Surges at Fastest Pace in Six Years
August 11, 2009
A report from the Labor Department shows that workers are doing more with less which is an important key for renewed economic growth.
Beware of Data-Mining
August 10, 2009
Analysts on Wall Street will look for any data relationship, no matter how silly. Investors need to avoid these games.
Cash for Non-Clunkers to the Rescue!
August 10, 2009
Last Thursday, the U.S. Senate approved an additional $2 billion for the Cash for Clunkers program, but are all these old trade-in cars really "clunkers"?
Emergent BioSolutions Soars 20%
August 7, 2009
Shares of biotech Emergent BioSolutions are up 20% today on the news of strong earnings.
Surprisingly Strong Jobs Report
August 7, 2009
Wall Street is happy that today's jobs report was much stronger than anyone expected.
Lincoln Educational Services (LINC) Rises on Strong Earnings
August 5, 2009
Lincoln Educational Services is up nicely today thanks to a great earnings report.
ADP Reports 371,000 Jobs Lost Last Month
August 5, 2009
ADP said that the economy shed 371,000 jobs last month but Wall Street is still focused on Friday's official report.
Near a Bottom in Housing
August 4, 2009
The latest data shows that personal income was down in June which indicates that many Americans aren't seeing green shoots.
Personal Income Down in June
August 4, 2009
The latest data shows that personal income was down in June which indicates that many Americans aren't seeing green shoots.
The July ISM Manufacturing Index Rises
August 3, 2009
The ISM manufacturing index rose to its highest level since Lehman Brothers went bankrupt.
Preview for the Week Ahead on Wall Street
August 3, 2009
Wall Street still has lots of earnings reports left, plus the big employment report is due this Monday.
The Inventory for $1 Million Homes Now Stands at 20.7 Months
August 3, 2009
The federal government is running the mortgage market and the social re-engineering of America is underway.
Q2 GDP -1%
July 31, 2009
The government reported that second-quarter GDP dropped by 1%. Here's what it means.
Green Mountain Coffee Roasters (GMCR) Rallies After Earnings
July 30, 2009
As I expected, Green Mountain Coffee Roasters easily beat Wall Street's earnings forecast.
Opening Bell
July 30, 2009
Here's a look at some top stories impacting the market this morning.
Wright Express (WXS) Jumps on Earnings Report
July 29, 2009
Shares of Wright Express have been up by as much as 12% today thanks to a good earnings report. Here's my take.
Finding Profits in Foreign Stocks
July 29, 2009
Although the market lost ground yesterday, one of my favorite China stocks was up 23%. Find out more.
"Fundamentals Really Matter"
July 29, 2009
Shawn Price, one of my top analysts, was quoted in yesterday's Wall Street Journal.
Housing Slowly Improves
July 28, 2009
After 34 months of nothing but declines, the housing market finally shows signs of life.
Amgen Rallies on Strong Earnings
July 28, 2009
Amgen is up today after reporting strong results for the second quarter. Here's my take.
Uncle Sam's Speeding Spree
July 27, 2009
The Federal Reserve still has a lot of money left over in its $1.25 trillion quantitative easing program.
June New Home Sales Rise 11%
July 27, 2009
After a lot of bad news, we may be seeing a turnaround for the housing market.
MarketWatch: Bernanke Meets the Public
July 27, 2009
MarketWatch notes a rare move, Ben Bernanke has become much more public lately.
Preview for the Week Ahead on Wall Street
July 27, 2009
This will be another important week for earnings. Wall Street is also gearing up for Friday's GDP report which will be our first look at how well the economy did last quarter.
Netflix's Earnings Rise 22%
July 24, 2009
Netflix is fighting off the recession. The company just posted another solid quarter.
Earnings Roundup for July 23
July 23, 2009
Earnings season is kicking into overdrive. Here's a look at some of today's earnings reports.
Today's Economic Reports
July 23, 2009
The market is doing very well today. In addition to a slew of earnings reports, there were two important economic reports.
Breakout for Emerging Growth Stocks
July 23, 2009
The new recommendations from the last issue of Emerging Growth are up an average of 16% which is three times that of the overall market.
Earnings Round-Up for Today
July 22, 2009
Here are some highlights of major earnings reports from today.
Apple's Earnings Rise 15%
July 22, 2009
Shares of Apple are up today on a very strong second-quarter earnings report.
Earnings Reports to Watch
July 21, 2009
There are a lot of big-name blue chips rolling out their quarterly reports in the next week. Here are some of the highlights to watch:
Yingli Green Energy (YGE) Soars
July 21, 2009
Yingli Green Energy (YGE) is rallying nicely today thanks to news of a new solar subsidy in China.
"Tentative Signs of Stabilization"
July 21, 2009
Ben Bernanke heads to Capitol Hill this morning, and he finally has some optimistic comments.
Is the Recession Ending?
July 20, 2009
The latest leading indicators show good news for the economy. This is the third straight monthly increase.
Preview for the Week Ahead on Wall Street
July 20, 2009
This is another busy week for earnings -- over 150 S&P 500 companies are due to report this week. Also, Ben Bernanke heads to Capitol Hill for a two-day testimony.
More Earnings: Bank of America, Citigroup
July 17, 2009
The earnings parade continues. Today we got more news from major banks. Both Bank of America and Citigroup beat analyst estimates.
Medifast Breaks Out to New 52-Week High
July 16, 2009
Shares of Medifast (MED) broke out to a new 52-week high this morning. Earnings are due soon and I'm looking for a big earnings surprise.
JPM's Stellar Quarter
July 16, 2009
JPMorgan Chase just reported earnings that were seven times what Wall Street was expecting.
Nice Rally for Stocks
July 15, 2009
Wall Street seems happy today thanks to a good earnings report from Intel. The June report on industrial production was weak, but it could have been a lot worse.
The Return of Stagflation
July 15, 2009
This morning's report on consumer prices shows that inflation is popping up. Let's take a closer look at the details.
The New GM
July 14, 2009
GM is out of bankruptcy. The White House wants GM and Chrysler to act as independent companies. What's my view?
Reports on Retail Sales and Producer Prices
July 14, 2009
The stock market is most flat today. Wall Street is currently digesting two economic reports; retail sales and wholesale inflation.
Goldman Sachs Posts Huge Quarter, J&J Beats the Street
July 14, 2009
Today's earnings report from Goldman Sachs has Wall Street rubbing its eyes in disbelief. Here's what I have to say.
Are Stocks Still the Best Investment for the Long Run?
July 14, 2009
Convention wisdom says that the stock market returns 10% a year on average, but some new research says that that might not be the case. Here's my opinion.
Budget Deficit Tops $1 Trillion
July 13, 2009
The Treasury Department just reported that for the first time ever, the federal budget deficit is over $1 trillion! Worst of all, we still have three months left in the fiscal year!
Yen Drops as U.S. Bank Stocks Rally
July 13, 2009
The dollar is down today as Wall Street is waiting to hear the latest earnings report from Goldman Sachs (GS). According to some, it will be a blockbuster.
Preview for the Week Ahead on Wall Street
July 13, 2009
This will be the most important earnings season in a long time. Here's a preview of some of the major events of this week.
Most Economists Oppose Another Stimulus
July 10, 2009
The latest buzz is that we need another, larger stimulus bill to help the economy get back on its feet. Most economists are against the idea. Here's my take.
Ross Stores Raises Forecast
July 9, 2009
The retail sales report was pretty rough for June, but Ross Stores (ROST) continues to thrive. The shares just hit a new 52-week high.
Retail Sales Continue to Fall
July 9, 2009
The retail sales report for June came out this morning and it shows that many retailers continue to suffer. There are, however, a few retailers I like.
Alcoa Reports Third Straight Quarterly Loss
July 9, 2009
Earnings season got underway yesterday as Alcoa (AA) reported its third loss in a row. Some analysts are happy that their results topped expectations. See what I have to say.
Amgen Soars 17% on New Study
July 8, 2009
Shares of Amgen are soaring today on news that its experimental bone medicine does a better job than one of its top rivals. This is causing analysts on Wall Street to raise their price targets for AMGN.
S&P's Earnings to Drop for Eleventh Straight Quarter
July 7, 2009
The earnings for the S&P 500 will be down for the eleventh straight quarter. While most analysts expect earnings to drop by as much as 20%, it may not be so bad. Read why a weak dollar could help.
How's GM's Bankruptcy Going?
July 7, 2009
General Motors is expected to emerge from bankruptcy soon, but don't think of investing in it. In an official statement, GM said that its stock will have no value even under the most optimistic scenarios.
ISM Nonmanufacturing Index Hits Highest Level Since September
July 6, 2009
The ISM nonmanufacturing index rose to 47.0 from 44.0, a point above the consensus, 46.0. This is good news. Let's hope we see more.
A Second Stimulus?
July 6, 2009
Last week's jobs report was awful so now some people are clamoring for another stimulus bill. The problem is that most of the money from the first stimulus bill hasn't even been spent yet!
Preview for the Week Ahead on Wall Street
July 6, 2009
This week will mark the beginning of second-quarter earnings season. Get ready because this is when the winners are separated from the losers. See what else is on tap for this week.
Today's Employment Report
July 2, 2009
The government just released its employment report for the month of June, and the results indicated more bad news for the economy.
The Flight to Quality Begins
July 1, 2009
Corporate insiders have been selling their stocks 20 times more than they've been buying. Find out what this means for your portfolio.
A Preview of Tomorrow's Jobs Report
July 1, 2009
Tomorrow, the government will release its employment report for the month of June. I expect to see more bad news, but it won't be nearly as bad as it was a few months ago.
Lincoln Educational Services (LINC) Hits New High
June 30, 2009
Although the market is down this morning, shares of Lincoln Educational Services (LINC) have broken out to a new 52-week. See why I continue to like this stock.
The Morning Market
June 30, 2009
The stock market is pulling back this morning on a bad consumer confidence report. Shares of Apollo Group (APOL), however, are up strongly on very good earnings.
Madoff Gets 150 Years
June 29, 2009
The judge just sentenced Bernie Madoff to 150 years in prison. That was the most he could do.
Fuqi International (FUQI) Jumps 18%
June 29, 2009
In the last three-and-a-half months, shares of Fuqi International (FUQI) are up over 470%. Find out why I like this stock right now.
The Fed Will Continue Gunning the Printing Press
June 29, 2009
The Federal Reserve said last week that it will continue to policy of quantitative easing . This means more pain for the U.S. dollar.
Preview for the Week Ahead on Wall Street
June 29, 2009
Here's a look at what to expect for the week before the July 4th holiday.
Personal Incomes Up
June 26, 2009
News of a rise in personal incomes doesn't seem to be enough to lift the market today. That's probably because much of the 1.4% rise in incomes in May can be attributed to stimulus package, which gave one-time $250 payments to people receiving a variety of social security benefits.
Bed Bath and Beyond Earnings Help Boost Market
June 25, 2009
Higher oil prices and a better-than-expected earnings report from Bed Bath & Beyond (BBBY) sent stocks higher today.
Lennar Corp. Helps Pull Market Back from Bad Jobless Report
June 25, 2009
The stock market got spooked this morning by a report that jobless claims rose well above the consensus estimates. But the downward push was quickly reversed when homebuilder Lennar Corp (LEN) reported a 63% increase in orders for new home sales over the first quarter.
Durable Goods Report Boosts Stocks, Especially Tech Stocks
June 24, 2009
Investors were pleasantly surprised by a durable goods report released this morning that showed orders for big-ticket items rose 1.8% in May, well above the consensus estimate, which forecast a drop of 0.9%.
Some Restaurant Stocks Prove Healthy Even in a Soft Economy
June 24, 2009
Yesterday, Darden Restaurants (DRI), operator of Olive Garden, Red Lobster and LongHorn Steakhouse, reported better than expected earnings. Here's why this restaurant stock deserves a place in your portfolio.
Kroger Reports Increase in Earnings, But Stock Is Hampered by Falling Gas Prices
June 23, 2009
Kroger Co. (KR), one of the nation's largest retail grocery chains, reported an increase in both profits and earnings today. But in addition to supermarkets, Kroger operates 798 gas stations, and the company was hurt by falling gas prices in the first quarter.
Here I Am on Bloomberg Today
June 22, 2009
I was interviewed on Bloomberg today. Here's the video.
Smith & Wesson Blows Away Street with Great Earnings
June 22, 2009
Smith & Wesson reported record quarterly earnings today with a whopping 125% increase in fourth quarter profit, 20% increase in fourth quarter sales and 75% increase in earnings per share.
Smith & Wesson Reports Earnings Today - Expect Good News
June 22, 2009
Smith & Wesson (SWHC) reports earnings today after the close, and I expect the news to be good. Here are the details of SWHC's announcement of its recent acquisition of Universal Safety Response, Inc. (USR).
Crucial Week for Treasuries
June 22, 2009
The fiscal problems in the U.S. are now reported to be keeping President Obama awake at night. Rising interest burdens are expected to raise the current deficit to over $2 trillion in fiscal 2009.
California Jobless Rate May Hit 11.5%
June 19, 2009
The economy in my native state of California is in free fall.
Research In Motion Is Still a Hold
June 19, 2009
Blackberry-maker Research In Motion (RIMM) reported earnings after the bell yesterday and the results were pretty good.
Jobless Claims Fall
June 18, 2009
We finally had a week of falling jobless claims. This breaks a streak of 21 straight weeks of higher claims; 19 of those weeks were records.
FedEx Drops on Lousy Guidance
June 17, 2009
One year ago, I listed FedEx (FDX) as a stock to sell immediately. Since then, the stock is down about 35%, and I don't see things getting much better any time soon. The company just announced earnings for its fiscal fourth quarter (ending in May). The earnings report was pretty good--64 cents per share compared with Wall Street's consensus of 51 cents a share. The problem, however, was the company's future guidance.
Don't Believe the Inflation Headlines
June 17, 2009
This morning, the government reported on consumer inflation for May. The Labor Department said that consumer prices rose just 0.1% last month which was less than the 0.3% expected by Wall Street economists.
Looking Ahead to Earnings Season
June 16, 2009
The second-quarter earnings season is shaping up to better than many analysts expect. Not too long ago, the S&P 500 was forecast to have its second-quarter earnings decline by 20%. But thanks to a decaying U.S. dollar, plus some economic "green shoots," the second-quarter earnings are now expected to decline by 12%.
Fed Gov Warsh Warns of Long Slump
June 16, 2009
At 2 p.m., the stock market is down again. The Dow is currently down by about 80 points. Federal Reserve Gov. Kevin Warsh threw some cold water on hopes for a strong recovery. He said he expects business and consumer spending to remain weak for several quarters, and unemployment to remain high.
Best Buy's Profits Drop
June 16, 2009
It's no secret that retailers are having a tough time. Best Buy (BBY) just reported that its earnings dropped from 43 cents a share in last year's first quarter to 36 cents a share for this year's first quarter. Sales rose 12% to $10.1 billion.
Today's Economic Reports
June 16, 2009
There were three major economic reports this morning. First, wholesale prices rose 0.2% last month. Most of that was due to higher energy prices. If you look at the "core rate," which excludes food and energy, producer prices fell 0.1%. Even with the 0.2% gain, the year-over-year rate is showing its steepest decline since 1949.
Preview for this Week on Wall Street
June 15, 2009
The stock market's rally has gone on for over three months now, but traders still don't seem to be interested in taking profits. That may change this week. Here's a rundown of what's on tap for this week on Wall Street.
Navellier Seminars
June 15, 2009
I'll be speaking in Atlanta, Georgia tomorrow at the Renaissance Waverly Hotel and Austin, Texas on Wednesday at the Renaissance Austin Hotel. You may attend at no cost, but please call 800-454-1395 to register. I'll review the current market outlook and answer any questions you may have.
Wall Street Down In Early Trading
June 15, 2009
The stock market is currently down 200 points this morning. Selling is across the board in many different industries. What's been doing well recently is doing poorly today. Oil, gold and other commodities are down. The Treasury Department said that demand for long-term financial assets dropped in April. Net buying by foreigners was $11.2 billion in April, down from $55.4 billion in March.
Earnings Outlook #2
June 14, 2009
Here I am on Tuesday discussing earnings on CNBC.
Del Monte's Earnings Blow Past Estimates
June 12, 2009
I recently raised Del Monte (DLM) to a Strong Buy in Portfolio Grader and it's easy to see why. The company just reported an outstanding quarter. Earnings from continuing operations came in at 35 cents a share, which was more than 34% higher than Wall Street's forecast.
Consumer Sentiment Edges Up Slightly
June 12, 2009
The Michigan consumer sentiment index rose to 69.0 from 68.7, which was just below Wall Street's consensus of 69.5. This is a surprise. Consumer sentiment should soon falter due to rising unemployment and higher gas prices.
Computer glitch at NYSE halts some floor trading
June 12, 2009
The Michigan consumer sentiment index rose to 69.0 from 68.7, which was just below Wall Street's consensus of 69.5. This is a surprise. Consumer sentiment should soon falter due to rising unemployment and higher gas prices.
Morning Call
June 11, 2009
Here are some of the latest news headlines affecting your money.
Synaptics (SYNA) Hits New High
June 11, 2009
Synaptics (SYNA), which is one of my favorite Quantum Growth stocks, broke out to a new 52-week high in this morning's trading. The shares have been as high as $40.94 today. The stock is up over 30% since I first recommended it two months ago.
Oil Nears $73
June 11, 2009
For the last few months, I've been plugging the theme of higher commodity prices. Only a few weeks ago, oil was close to $40 a barrel. Today it's closing in on $73 a barrel. The news today is that the International Energy Agency raised its demand estimate for this year. The IEA sees demand falling this year but not as much as its previously thought.
Home Depot Lifts Guidance
June 10, 2009
Shares of Home Depot (HD) are getting a nice lift today as the company increased its full-year EPS guidance. The company now sees earnings coming in between 20% and 26% lower than last year. The earlier forecast was for a 26% drop.
New GM Chairman: "I Don't Know Anything about Cars"
June 10, 2009
Uh oh. Edward E. Whitacre Jr. built AT&T Inc. into the biggest U.S. provider of telephone service over a 43-year-career. By his own admission, he becomes chairman of General Motors Corp. knowing nothing about the auto industry.
Green Mountain Coffee Roasters Splits 3-for-2
June 9, 2009
Shares of Green Mountain Coffee Roasters (GMCR) will split 3-for-2 today. That means that shareholders will get one extra share for every two shares they currently own.
Treasury Allows TARP Repayment
June 9, 2009
The big news today is that the Treasury Department will allow 10 major banks to pay back $68 billion in TARP money. The Treasury hasn't said which ten, but I assumed it's the banks that fared the best during the stress test. This would be banks like Goldman Sachs (GS) and JPMorgan Chase (JPM).
Alliance One International (AOI) Soars
June 9, 2009
One of my favorite small-cap tobacco stocks is rallying today on a strong earnings report. Alliance One International (AOI) has been up by as much as 17% today. For their last fiscal year, AOI saw its net income rise more than 684% to $132.6 million. On a per-share basis, AOI made $1.50 which means the stock is going for less than four times earnings.
The Housing Fiasco Continues
June 9, 2009
Recently, there's been a lot of hope that the housing mess is coming to an end. In my opinion, we're not even close to the end. Consider one simple fact: Inventories of homes are almost twice their normal level. On top of that, fixed mortgage rates haven't been falling--they're rising. The average rate for a 30-year fixed mortgage is now 5.25%. It's gotten so high that mortgage applications are falling.
Preview for the Week Ahead on Wall Street
June 8, 2009
On Monday, the Dow Jones Industrial Average will officially change. For the first time since 1925, General Motors will no longer be part of the Dow. Citigroup (C) and GM (GM) are out. Cisco (CSCO) and Travelers (TRV) are in.
Gordon Brown's Government Is "Collapsing Before Our Eyes"
June 8, 2009
On Saturday, President Obama gathered with the leaders of Canada, Britain and France in Normandy to commemorate the 65th anniversary of the D-Day landings. One of the leaders, Britain's Prime Minister Gordon Brown, is facing a war of his own. His government is, to quote Tory leader David Cameron, "collapsing before our eyes."
Are Bank Stocks Safe?
June 8, 2009
One of the most frequent topics I'm asked about is bank stocks and whether they're now safe to own. Even though many banks, like Citigroup (C), Bank of America (BAC), JPMorgan Chase (JPM) and Well Fargo (WFC) are now rated A or B on Portfolio Grader, many of these banks have been conducting secondary stock offerings to repay their TARP money, which will likely impede their near-term performance.
Unemployment Jumps to 9.4%
June 5, 2009
The Labor Department reported that that nation's unemployment rate jumped to 9.4% last month which is the highest reading in over 25 years. Despite the awful news, Wall Street is actually pleased because payrolls dropped by only 345,000.
Oil Is on the Rise
June 5, 2009
As I've been predicting, the huge government spending is putting pressure on the dollar and that's causing commodity prices to rise.
Shanda's Earnings Top Views
June 3, 2009
We got more good news yesterday from Shanda (SNDA), which is one of my top China online game stocks. The company reported earnings of 78 cents a share, five cents more than expectations. Online gaming is very popular in China and companies like Netease.com (NTES) and Shanda have made huge gains. The company's revenues soared 47% to $155 million.
Williams-Sonoma Swings to Loss
June 3, 2009
The retail environment has been horrible and even the best companies are losing money. This morning we learned that Williams-Sonoma (WSM) reported a loss for its fiscal first quarter which ended on May 3. In addition to Williams-Sonoma stores, the company also runs Pottery Barn and West Elm. For the quarter, the company lost 14 cents a share. The only bright spot is that this was seven cents better than expectations.
Bernanke Tells Congress to Cut Spending
June 3, 2009
Bernanke is testifying before Congress today and here's part of what he said: The recent projections from the Social Security and Medicare trustees show that, in the absence of programmatic changes, Social Security and Medicare outlays will together increase from about 8-1/2 percent of GDP today to 10 percent by 2020 and 12-1/2 percent by 2030. With the ratio of debt to GDP already elevated, we will not be able to continue borrowing indefinitely to meet these demands.
The First-Quarter GDP Report
June 1, 2009
On Friday, the Commerce Department reported that U.S. GDP in the first quarter was revised up to a 5.7% annualized decline from its initial estimate of a 6.1.
ArcSight Continues to Surge
June 1, 2009
A few weeks ago, I highlighted tiny ArcSight (ARST) of Cupertino, CA. Earnings are due out on June 11. The stock has been charging since midday Friday.
The First-Quarter GDP Report
June 1, 2009
On Friday, the Commerce Department reported that U.S. GDP in the first quarter was revised up to a 5.7% annualized decline from its initial estimate of a 6.1
General Motors Declares Bankruptcy
June 1, 2009
It's official: General Motors filed for bankruptcy. GM (GM) and Citigroup (C) were booted from the Dow Jones Industrial Average today and replaced by Travelers (TRV) and Cisco (CSCO). I rate Travelers a Hold and Cisco a Sell. Then on Tuesday, Richard Fisher, who's the head of the Federal Reserve Bank of Dallas, will give a talk on the economy. Also, the National Association of Realtors will report on home sales for April. Hopefully, we'll see some signs of stability.
Preview for this Week on Wall Street
June 1, 2009
The first week of June is going to get off to an eventful start as General Motors (GM) will declare bankruptcy. Also on Monday, the Commerce Department will report on personal income and personal income. Economists on Wall Street are expecting a small drop for both. Then on Tuesday, Richard Fisher, who's the head of the Federal Reserve Bank of Dallas, will give a talk on the economy. Also, the National Association of Realtors will report on home sales for April. Hopefully, we'll see some signs of stability.
Nebraska Turns to Mini-Cows to Combat the Impending "Cow Tax"
May 26, 2009
Nebraska may be preparing for the impending "cow tax." In response, "mini-cows" have been spotted in the state, which are compact cattle with stocky bodies, smaller frames and relatively tiny appetites.
Bank United Fails
May 22, 2009
The banking sector isn't in the clear just yet. Bank United (BKUNA) just became the 34th bank failure of the year, but it's also the largest one yet.
Buckle's Earnings Surge 44%
May 21, 2009
This has been a very tough environment for retailers, but my favorite teen retailer continues to do very well. Buckle (BKE) just reported outstanding first-quarter earnings of 58 cents a share.
Stock Market Volatility Drops
May 21, 2009
The stock market is much less volatile right now. That bodes well for investors.
Uncle Sam May Lose AAA Rating
May 21, 2009
Those massive budget deficits are starting to cost us. Uncle Sam is on the verge of losing his AAA credit rating. Our budget deficit is now higher than Britain's in relation to our economies. A lower credit rating will mean higher borrowing costs and that will make the deficit even worse.
Bank of America Is a Buy
May 20, 2009
The results of the recent stress test said that Bank of America (BAC) needs to raise $34 billion. The bank just completed a massive secondary offering. Bank of America issued 1.25 billion shares at an average price of $10.77. To raise even more money, the bank plans to sell off some divisions and subsidiaries.
Dollar Plunges
May 20, 2009
Bloomberg reports:
The dollar declined to the lowest level versus the euro since January as falling currency and stock volatility spurred speculation investors will seek higher- yielding assets.
Recessions End with Powerful Bull Markets
May 19, 2009
As painful as the past 18 months have been, history shows us that painful bear markets often lead to big returns. USA Today recently noted some of our research.
Housing Starts Plunge
May 19, 2009
This morning's housing report showed that housing starts fell 13% to 458,000. That's a record low and it was well below the Street's forecast of 520,000. I have absolutely no idea why Wall Street was expecting such a high number. With six million unsold homes, until inventory tightens, housing starts will not improve. Another sign of more bad news to come is that building permits dropped by 3.3% to a record low.
Lowe's Knows Earnings Surprises
May 18, 2009
Lowe's (LOW), the home improvement store, just reported quarterly earnings of 32 cents a share. That's a good bit down from the 41 cents from a year ago. However, the expectations on Wall Street were for just 25 cents a share, so this was an encouraging report.
Preview of Week Ahead on Wall Street
May 18, 2009
On Monday, the major homebuilders will release their May housing index. It will be interesting to see if there's been more activity in this crucial sector. Then on Tuesday, Home Depot (HD), TJX (TJX), Medtronic (MDT) and Hewlett-Packard (HPQ) are due to report earnings. We'll also get a report on housing starts.
Here I Am on Bloomberg
May 15, 2009
Inflation Unchanged for April
May 15, 2009
The government released the Consumer Price Index report for April today and it showed that there was no inflation last month. On a year-over-year basis, prices fell by 0.7% which is the biggest drop in over 50 years.
Wal-Mart's Q1 Earnings
May 14, 2009
Wal-Mart (WMT) reported first-quarter earnings today. On surface, the results don't appear to be that strong, but when you look at the details, I think Wal-Mart is doing quite well.
Only 6% of Stimulus Has Been Spent
May 14, 2009
I know I must sound like a broken record when I talk about Uncle Sam's awful fiscal policies. Earlier I mentioned that we ran a deficit during April (tax month) for the first time in a quarter of a century. The deficit is projected to balloon by fourfold this year.
Boots and Coots and Knowing When to Sell
May 13, 2009
Knowing when to sell is a tricky part of investing. In our Navellier system, we key in on picking up a rise in a stock's daily volatility. When the daily fluctuations start to grow unusually high that often tells us that trouble is brewing. An excellent example is Boots & Coots International Well Control (WEL). Incidentally, it also has one of my favorite names of any stock.
Fiscal 2009 Budget Deficit Balloons
May 13, 2009
I've been warning investors about the dire straits of the U.S. government's finances. The Treasury just reported that it ran a deficit during April, which is tax month, for the first time in 26 years.
Fluor Rallies on Q1 Profits
May 12, 2009
The stock market is soggy again today as traders are taking profits on the market's incredible run since early March. Fluor (FLR), one of my top Blue Chip Growth stocks, is having a good day after it posted healthy profits for the first quarter.
Why the Dollar is in Trouble
May 12, 2009
It's hard to explain to folks just how bad our government's finances are because the numbers are so staggering. This year, the federal government is spending nearly twice what it will bring in through taxes. It's so much money that to balance the budget every taxpayer over $75,000 would have to be taxed at 100%!
Today's Trade Report
May 12, 2009
The government reported today that the trade deficit widened in March for the first time in eight month. Both imports and exports fell, but exports fell by slightly more, 2.4% to 1.0%. A weakening U.S. dollar is now driving crop prices higher and should eventually boost exports. Since 46 cents of every dollar that the federal government spends is borrowed, the dollar's demise is inevitable. Until exports perk up, the economy will continue to flounder.
This Is a Stock-Pickers' Market
May 11, 2009
Over the last two months, the stock market has put on an impressive rally. Shares of nearly every stock have soared. However, I want to caution investors that not all stocks will continue to enjoy the gains to come.
Preview of This Week on Wall Street
May 11, 2009
This week will probably be quieter than the previous few weeks since earnings season is almost over. The big news this week will be the reports on wholesale and consumer inflation. If the news shows that inflation is creeping up, this could mean big trouble for the bond market.
Unemployment Jumps to 8.9%
May 8, 2009
The Labor Department released the jobs report for April and as expected, the numbers are ugly. The economy lost 539,000 jobs last month, and the unemployment rate rose from 8.5% to 8.9%. If there is a silver lining it's that economists were expecting job losses of 610,000 so we did a little better than expectations.
The Stress Test Results Are Out
May 7, 2009
The New York Times reports: "Federal regulators told the country's 19 largest banks that they must raise $75 billion in extra capital by November, a more upbeat verdict on the health of the financial system than the industry had feared just two months ago. "Ten of the 19 bank holding companies deemed "too big to fail" by the Obama administration will be required to raise additional capital, according to the results of the government's stress tests, released late Thursday afternoon. But the 10 banks will have to raise much less capital than some analysts had expected as recently as a few days ago.
Midday Market Update
May 7, 2009
The major indexes are down slightly so far today. There are a few positives economics items; productivity is up, jobless claims were less-than-expected and Wal-Mart's (WMT) sales report topped forecasts.
Treasury Yields Soar
May 7, 2009
Earlier this week, I said that the big event coming up will be the Treasury auctions. Well, we haven't even had the 10-year T-bond action yet and yields are already soaring.
Morning Call
May 6, 2009
Here are some items of interest and note to investors today.
ADP Report Shows Job Losses Less Than Forecast
May 6, 2009
We had some potentially good news today. The employment report from ADP, a private firm, showed the payrolls dropped by 491,000 last month. Wall Street is expecting a decline of 645,000.
Almost Family Jumps 14%
May 6, 2009
Almost Family (AFAM) is a wonderful stock to own during tough economic times. The company provides home health nursing services. This morning, Almost Family post first-quarter earnings of 68 cents a share. That was eight cents more than Wall Street's consensus. The shares have been up by as much as 14% this morning.
Netease.com Hits Another All-Time High
May 6, 2009
Netease.com (NTES) had broken out to yet another all-time high. If you think you heard this from me before, you're right. The stock is like the Energizer Bunny. NTES got to as high as $32.62 today. My Quantum Growth subscribers are currently sitting on a 60% profit. That's not bad for two months!
Bernanke Says Growth Will Resume Later This Year
May 5, 2009
Ben Bernanke shared some optimistic words, which should help the market.
Pantry Posts Huge Earnings Surprise, Nordic American Tanker Declares Dividend
May 5, 2009
Pantry (PTRY), one of my favorite Quantum Growth stocks, reported earnings of 10 cents a share this morning. That was 28 cents better than Wall Street's forecast. The company is the leading convenience store operator in the southeastern U.S. Since their March low, shares of Pantry are up more than 80%.
Marvel Entertainment Beats Earnings and Raises Guidance
May 5, 2009
Marvel Entertainment (MVL) delivered an amazing earnings report this morning. The Super Hero company earned 57 cents a share last quarter which demolished Wall Street's forecast of 36 cents a share. That's a 58% earnings surprise! Marvel's stock has been up by as much as 8% this morning.
Healthy Banks Could Fail the Stress Test
May 5, 2009
Thanks to yesterday's rally, the stock market is up slightly for the year. That's a nice turnaround from where we were two months ago. This may soon be a tough week. First we have the biggest week ever for Treasury auctions. If they don't go well, then you can expect the dollar to fall and inflation to perk up.
Wolverine Brings in $87 Million In Opening Weekend
May 4, 2009
Marvel Entertainment's (MVL) new movie "X-Men Origins: Wolverine" had a huge opening weekend. The film, starring Hugh Jackman, brought in $87 million. There was an interesting quote I noticed in a recent Bloomberg article:
Preview for this Week on Wall Street
May 4, 2009
Earnings season is beginning to wind down. The two big news items this week will be the release of the bank stress test results on Thursday and the employment report on Friday. We may see the first signs that the economy is stabilizing.
Cramer Gives Us Credit for Our Green Mountain Call
May 1, 2009
Midday Market Update
May 1, 2009
Today is May Day and many stock exchanges are closed around the world. It's been a fairly quite day on Wall Street. As of noon, the major indexes are holding on to small gains. One economic report showed that the April ISM rose to 40.1 from 36.3, a bit above the consensus 38.4 and the highest reading since September. This is good news, but the ISM will probably stumble in future months due to the plant shutdowns at GM and Chrysler. The Federal Reserve said today that it will reveal the results of its stress test on May 7. The idea of the stress test is to see how well the nation's largest banks will hold up if the recession worsens. Of course, I'm more worried about how the U.S. government will hold up if the economy worsens.
More Great Earnings
May 1, 2009
The roll call of great earnings reports continues. After the bell yesterday, we got a great report from Dolby Labs (DLB) which has been one of our top-performing Quantum Growth stocks. Dolby beat Wall Street's consensus by a stunning 30%.
There's Nothing Neutral about Neutral Tandem
April 30, 2009
Apparently no one told Neutral Tandem (TNDM) that we're in a recession. The company just posted earnings of 27 cents a share, four cents more than estimates. Wall Street is very pleased and the stock has been up by as much as 14% in today's trading. I have to admit that I wasn't surprised by TNDM's results. In fact, I wrote on April 17: "The next earnings report will come out in two weeks and I'm expecting another big gain."
First Solar Heats Up
April 30, 2009
At one point today, Green Mountain Coffee Roasters (GMCR) hit $79.13 making it a 50% gainer on the day. The shares have backed off slightly, but today is still an outstanding day for Green Mountain. But that isn't the only one of my favorite stocks soaring. Shares of First Solar (FSLR) have been up by as much as 25% in today's market.
Chrysler Enters Chapter 11 Bankruptcy
April 30, 2009
The White House has said that Chrysler will enter Chapter 11 bankruptcy. Fortunately, the bankruptcy news isn't derailing the stock market today. Asia and Europe are up on the Fed's statement that things are getting better. Obama will have more to say about Chrysler at noon. The good news this morning is that initial jobless claims dropped by 13,000 to 631,000 which was 9,000 below forecast. Also, the April Chicago PMI, which is a key gauge of future economic growth, jumped to 40.1 from 31.4. This was well above the consensus 35.0 and the highest reading since September. This is very encouraging.
Green Mountain Coffee Roasters' Blow-Out Quarter
April 30, 2009
After yesterday's close, Green Mountain Coffee Roasters (GMCR) released a phenomenal earnings report. Profits more than doubled to 50 cents a share from 23 cents a share one year ago. Get ready for the shares to soar today. Two weeks ago, I highlighted the stock as a great rising company. I said that it's similar to the kind of young company that Starbucks (SBUX) used to be.
Ken Lewis Out as BAC Chairman
April 29, 2009
The Dow rose 168.78 points today to close at 8185.73. That's the highest close since February 9. There were solid gains across many sectors. Pantry Inc. (PTRY), a favorite in my Quantum Growth service, soared over 15%. Smith & Wesson (SWHC), which is in my Emerging Growth service, jumped nearly 10%. One of the big news items today was that Ken Lewis lost his job as chairman of Bank of America (BAC). It's about time, I've never trusted him.
Fed Makes Policy Statement
April 29, 2009
The Fed made a policy statement today. The Fed apparently wants to expand the quantitative easing. This will certainly help weaken the U.S. dollar.
Dow 8200
April 29, 2009
The Dow is on track to close above 8200 for the first time in over two months. The S&P 500 also broke out above 875.
First-Quarter GDP Dropped By 6.1%
April 29, 2009
The government reported today that the economy fell by 6.1% during the first three months of the year which is more than the 4.7% drop expected by economists. The bright spot is that consumer spending increased by 2.2%. During the fourth quarter of 2008, the economy contracted by 6.3%. This is the first estimate of first-quarter GDP growth. This number will be revised at the end of May and again at the end of June.
Morning Headlines
April 28, 2009
The market is holding on to some gains this morning. Here are some top headlines...
Southwestern Energy Rallies
April 28, 2009
Shares of Southwestern Energy (SWN) are doing well this morning. The company reported a first-quarter loss of $1.26 a share compared with a 31-cent gain last year. However, Southwestern took a $907 million charge, so excluding that the company earned 31 cents a share which was in line with Wall Street's consensus. The stock continues to be an excellent buy.
Navellier Seminars
April 27, 2009
I'll be speaking tomorrow at the Cincinnati Airport Marriott in Hebron, Kentucky. Then on Wednesday, I'll be at the Cleveland Marriott East in Warrensville Heights, Ohio. The seminars are free to attend but call 800-454-1395 to register. I'll review the current market outlook and how to use Portfolio Grader.
Swine Flu Stocks
April 27, 2009
Over the weekend, the world has been engulfed in fear of the Swine Flu outbreak. It's hard to say what the impact will be. After Hong Kong experienced the SARS outbreak, their stock market dropped 17%. Smithfield Foods (SFD), the world's largest pork producer, is down sharply. Many airline and cruise line stocks are also down.
Preview for this Week on Wall Street
April 27, 2009
This is the final week of April. We're going to more earnings reports plus we're going to get our first peak at how well the economy did in the first quarter. On Monday, Baidu (BIDU), Southwestern Energy (SWN) and Verizon (VZ) report earnings. On Tuesday, the report for consumer confidence is released.
Fed Releases Stress Test Details
April 24, 2009
The Federal Reserve has released the details of the government's stress test (here's the Fed's statement). These tests were designed by the Fed to see how much of a downturn the 19 largest banks can take. The idea is that a stress test would calm investors' fears. Basically, I think the tests are designed so everyone can pass. There will be a lot of testing, but not much stress.
The Opening Bell
April 24, 2009
The big news today will come from the Federal Reserve. Later today, the Fed will disclose how it conducted its infamous "stress test" for 19 leading banks. Since this is the Fed we're talking about, the disclosure will only be in general terms and it will lack specifics. The government won't publicly reveal how the tests went until May 4. Even if the banks pass, many are still far from healthy and I'm sure a few will be back asking for more taxpayer money.
The Earnings Parade Continues
April 23, 2009
The market was weak during much of the day, but showed some strength in the final half hour. The Dow closed 70 points higher. There were still more earnings after the bell.
Hershey's Sweet Quarter
April 23, 2009
Noon Business News Summary
April 23, 2009
ITT Educational Services Beats the Street and Guides Higher
April 23, 2009
ITT Educational Services (ESI) is having a very good decade. The stock finished 1999 at $7.72 (adjusted for a split). Today it's at $105 which translates to a 1,200% gain while the rest of the stock market is down.
More Strong Earnings from Apple
April 23, 2009
Apple (AAPL) reported good earnings yesterday. The company sold 11 million iPods last quarter while analysts were expecting 10 million. The company earned $1.33 a share, 24 cents more than consensus. For this quarter, Apple sees EPS coming in between 95 cents and $1, though Apple is notorious for setting very low guidance.
General Motors Won't Meet Debt Payment
April 22, 2009
General Motors (GM) said today that it will fail to meet its $1 billion debt payment due on June 1.
Still More Earnings
April 22, 2009
The earnings are coming fast and furious now! One of my top Emerging Growth stocks, Conceptus (CPTS) is up strongly this morning. The health company reported a loss of 14 cents a share which was better than expectations. The stock is up about 14% today. Conceptus is an outstanding buy.
Biotech Earnings Shine
April 22, 2009
After yesterday's closing bell, Gilead Sciences (GILD) reported first-quarter earnings of 66 cents a share, seven cents more than Wall Street was expecting. Sales rose 21% to just over $1.5 billion.
Nice Reversal
April 22, 2009
After a slow start this morning, starts have started to wake up. There are going to be some important earnings reports coming after today's closing bell like Conceptus (CPTS), Illumina (ILMN) and Gilead Sciences (GILD).
Morning News Headlines
April 21, 2009
There's a lot going on this morning. Here are several business news items of note: Geithner says the Treasury doesn't need more bailout money IMF Says Global Losses From Credit Crisis May Hit $4.1 Trillion Canada Cuts Rate to 0.25% The New York Times Posts Loss
Caterpillar Posts First Loss in 16 Years
April 21, 2009
Lately, I've been talking about how investors can no longer trust the stock stalwarts of old. Starbucks (SBUX) used to be a stock that investors could trust without question. Not anymore. Caterpillar (CAT) is a similar story. I have the stock rated "Strong Sell," and said I wouldn't be surprised to see a quarterly loss. That's exactly what happened. The company posted a loss of 19 cents a share which is down from a profit of $1.45 one year ago. Caterpillar also slashed its full-year earnings and sales forecast. Avoid this stock!
Leading Economic Indicators
April 20, 2009
The index of leading economic indicators dropped by 0.3% last month which was 0.1% more than expected. The weak spots were the falling workweek, rising jobless claims, faster delivery times, lower building permits and a drop in stock prices.
Bank of America Shows Improvement
April 20, 2009
The stock market is down this morning but that's not a big surprise since Wall Street has rallied for six straight weeks. In addition to the Oracle-Sun Micro news, Bank of America (BAC) posted good Q1 earnings. The bank earned $2.8 billion or 44 cents a share. Wall Street was expecting just four cents a share.
Oracle to Buy Sun Microsystems
April 20, 2009
Last month, IBM (IBM) said it wanted to buy Sun Microsystems (JAVA). At the time, I said it wasn't a smart move for them. Two weeks ago, the deal came apart. The big news this morning is that Oracle (ORCL) is going to buy Sun for $9.50 a share, or $5.6 billion. In my opinion, this is a much better deal for everyone.
Preview for this Week on Wall Street
April 20, 2009
Get ready for another big week for earnings. On Monday, Bank of America (BAC), Eli Lilly (LLY) and IBM (IBM) all report earnings. Also on Monday, leading economic indicators are released and Ben Bernanke will address a conference and economic literacy. Tuesday will be a big day for central bank meetings. We'll hear results of interest rate decisions in Sweden, Canada and India. More than one of those countries will probably cut rates...
The Spanish Fed Says No
April 20, 2009
I've been fascinated by some of the economic news coming out of Spain lately (my family is Basque). The reason is that it seems to be foreshadowing what could happen in the U.S. The Spanish central bank basically told the government to stop spending so much money. Ten years ago, Spain joined the euro so the Spanish central bank really doesn't have that much power. Still, this was interesting to see.
Consumer Prices Fell 0.1% Last Month
April 20, 2009
The Labor Department reported that consumer prices slid 0.1% last month. The CPI posted its first annual drop since 1955.
Neutral Tandem Hits New High
April 17, 2009
Shares of Neutral Tandem (TNDM) broke out to a new 52-week high this morning. Readers of my Emerging Growth services are up over 40% in the stock in less than two months. The company provides third-party interconnection services to competitive telecommunications carriers. In a nutshell, TNDM helps wire-line, wireless and broadband customers talk to each other-even if they all pay their bills to different companies. Neutral Tandem offers services in more than 60 U.S. metropolitan markets and is a critical part of our nation's communications network.
Finally Some Good News from Citigroup
April 17, 2009
For the first time in 18 months, Citigroup (C) earned a profit. The bank made $1.59 billion in the first quarter. For last year's first quarter, they lost $5.11 billion. The bank had a private stock offering so the money that actually went to shareholders was a loss of $966 million or 18 cents a share. Wall Street was expecting a loss of 34 cents a share. I still have Citigroup rated as "C - Hold."
Time to Buy Banks?
April 16, 2009
For the first time in 18 months, Citigroup (C) earned a profit. The bank made $1.59 billion in the first quarter. For last year's first quarter, they lost $5.11 billion. The bank had a private stock offering so the money that actually went to shareholders was a loss of $966 million or 18 cents a share. Wall Street was expecting a loss of 34 cents a share. I still have Citigroup rated as "C - Hold."
JPMorgan Chase Tops the Street
April 16, 2009
The stock market was helped this morning by good news from JPMorgan Chase (JPM). The bank earned 40 cents a share for the first quarter which was eight cents more than Wall Street was expecting. Like other banks, JPM said it wants to pay back its TARP money as soon as it can. Interestingly, CEO Jamie Dimon said they won't participate in Secretary Geithner's private/public investment plan to buy toxic assets, as a buyer or a seller.
Tax Day Deals
April 15, 2009
If you're feeling the pain of Tax Day, Smart Money has listed 18 great Tax Day deals (i.e., one free scoop of ice cream from Maggie Moo's).
American Airlines Takes Flight
April 15, 2009
AMR Corp. (AMR), the parent of American Airlines is having a great day in today's session. The shares have been up by as much as 22%. The rally is being fueled by the news that the company reported a loss today but it was much less-than-expected. For the first quarter, AMR lost $375 million or $1.35 a share compared with a loss last year of $341 million or $1.37 a share. The Street was looking for a loss of $1.62 a share.
Intel Earnings Plunge But Still Beat Expectations
April 14, 2009
Our two-day streak of staying above 8,000 came to an end today. The Dow pulled back 137.63 points to close at 7,920.18. The market was clearly hurt by the weak retail sales report that came out this morning. The big news after the close came from Intel (INTC). The chip company reported that its first-quarter earnings plunged 55% but that was well above Wall Street's forecast. The Street had obviously set the bar very low.
Economic News This Morning
April 14, 2009
There were a few important economic news items this morning. Here's a brief summary: Retail sales dropped 1.1% last month. This was a surprise since economists expected an increase of 0.3%. This is a bit disappointing after last week's same-store sales. The fact that Easter was in March a year ago might have been a factor.
Goldman Reports Stronger-Than-Expected Earnings
April 14, 2009
After yesterday's closing bell, Goldman Sachs (GS) surprised Wall Street by announcing its earnings report one day ahead of schedule--and those earnings were very good. Goldman said it made $1.81 billion last quarter or $3.39 a share which is up from the $1.51 billion, or $3.23 a share it made in the same quarter one year ago. Wall Street was expecting earnings of just $1.59 a share.
CChina Is Cutting Back On Its Treasuries
April 13, 2009
The New York Times has a fascinating article on how China is cutting back on its purchases of U.S. Treasuries. In the first two months of this year, the Chinese government was a net seller of Treasuries. China is a gigantic player in the market for our Treasury debt. Two-thirds of the Chinese central bank's $1.95 trillion in foreign currency reserves are held in dollars. But that number may fall in the years ahead.
The Week Ahead on Wall Street
April 13, 2009
This week is going to be all about earnings. Today, we're going to get earnings reports from Charles Schwab (SCHW) and St. Jude Medical (STJ). Tomorrow we'll get reports from Johnson & Johnson (JNJ), Goldman Sachs (GS) and Intel (INTC). There will also be important reports on retail sales and wholesale inflation. There have been a few bright spots in the economy so it will be interesting to see if there's more evidence to confirm a trend.
Express Scripts Bold Deal
April 13, 2009
I've recently discussed the growing merger wave in healthcare. This is a trend that every investor ought to be a part of. This morning, one of my favorite healthcare picks, Express Scripts (ESRX), announced plans to buy WellPoint's (WLP) in-house pharmacy-benefit management business for $4.68 billion. I like this deal and it will give ESRX a huge lift against its rivals. When you have lots of cash, low stock prices and a crowded industry, you're going to see consolidation. I was also glad to see that Express Scripts is funding the deal with cash and stock. Expect to see more big deals in the near-future.
Britain Hold Rates But Continues to Print Money
April 13, 2009
At the end of the G20 meeting, the countries pledged to not weaken their currencies. Today, the Bank of England said it would hold rates steady at 0.5% but it would continue its policy of "quantitative easing." Quantitative easing is simply a codeword for printing more money so this will definitely hurt the British pound. Despite the G20 pledge, it's obvious that Britain doesn't want to stop lowering their currency.
Wells Fargo Guides Higher
April 9, 2009
For several months I've been telling investors to avoid financial stocks. One of the few that I've liked has been Wells Fargo (WFC). Today, the bank said it expects to reports earnings of $3 billion or 55 cents a share. The Street was only expecting 23 cents a share. That's a big surprise. As a result, the shares are up strongly this morning.
Mergers in the Homebuilding Sector
April 8, 2009
The stock market is up slightly this morning as the market looks to end its tow-day losing streak. The big news came from the homebuilding sector when Pulte Homes (PHM) and Centex (CTX) announced that they'll merger together. The combined company would have a market value of $4.1 billion, which will make them the largest player on the field.
Netease.com Hits All-Time High
April 7, 2009
Although the stock market is down again today, one of my favorite China stocks, Netease.com (NTES), reached another new all-time high yesterday. Seven years ago, the stock was going for about 20 cents a share (adjust for splits). Today Netease.com is over $28 a share so that's a gain of 140-fold in seven years. The stock is up 37% since the market turned on March 9.
HHGregg Guides Higher
April 7, 2009
Today marks the unofficial beginning of first-quarter earnings season. After the closing bell, Alcoa (AA) will report its earnings for the first three months of 2009. It probably won't be a good report. Wall Street expects Alcoa to post a loss of 52 cents a share compared with a profit of 44 cents for the same period last year. The stock gets an "F - Strong Sell" in my Portfolio Grader stock-rating system.
Bristol-Myers Reaches Deal to Continue Selling Abilify
April 6, 2009
Today is a good day for Bristol-Myers Squibb (BMY) which is one of my top Blue Chip Growth stocks. The healthcare company reached a deal with Japan's Otsuka Pharmaceutical to continue selling the antidepressant Abilify in the U.S. until 2015.
10 Stocks with Awful Fundamentals
April 6, 2009
The key to my investing philosophy is to focus on stocks with outstanding fundamentals. This means key variables like strong sales and earnings growth and a high return-on-equity. With earnings season fast approaching, you want to make sure that you don't own any stocks with lousy fundamentals.
The Sun Micro/IBM Deal Falls Apart
April 6, 2009
Three weeks ago, shares of Sun Microsystems (JAVA) soared on the news that it was being bought by IBM (IBM). At the time, I wrote: "I rate IBM a buy, but I don't think this is a smart move on their part. Sun will most likely be an underperforming asset probably for the next several quarters."
AZZ Earns 81 Cents a Share
April 3, 2009
AZZ Inc. (AZZ) which is my longest-held stock in Emerging Growth, reported earnings this morning of 81 cents a share. That's a pretty strong number and it was two cents higher than Wall Street's estimate. Revenues rose 31% but despite that impressive growth, the revenue number was slightly below the Street's consensus. As a result, the stock is lower today, but I still rate the stocks a solid buy.
Unemployment Hits 8.5%
April 3, 2009
One of the reasons why the stock market rallied yesterday was that the Financial Accounting Standards Board relaxed some of its accounting rules. I'm certainly glad for yesterday's rally, but let's be frank: If a company wants to fudge a bit on their numbers, they now have a chance.
Dow Breaks 8,000
April 3, 2009
For the first time in two months, the Dow crossed over 8,000. The index got to as high as 8,075.
The ECB Cuts Rates
April 2, 2009
Today looks to be another good day for stocks. The market has almost made back everything it lost during the nasty two-day downturn of last Friday and Monday. The bad economic news this morning was the jobless claims report. Jobless claims rose 12,000 last week to 669,000. This is bad but we knew it was coming. The major report will be tomorrow's employment report for March, and I'm expecting more bad news.
Celgene Shocks the Street
April 1, 2009
Shares of Celgene (CEL) are getting pummeled in today's trading. The drug maker warned about its first-quarter earnings and that has sparked the heavy selling today. This is interesting for two reasons. First, we can see that the economy is impacting healthcare stocks which are often immune for economic downturns. The other reason is that Celgene had been a very strong stock for a long time. Wall Street was expecting sales for Q1 of $647 million. Today, Celgene said its sales will come in around $600 million.
Fidelity National to Buy Metavante for $2.94 Billion
April 1, 2009
Great news this morning. Fidelity National Information Services said that it will buy Metavante Technologies (MV) for $2.94 billion. Metavante shareholders will receive 1.35 shares of Fidelity National stock for each share they own of Metavante. That works out to a 23% premium over yesterday's close.
Market Closes Out Best Month Since 2002
March 31, 2009
The market finished March on a strong note. The Dow added 86.90 points today to close at 7,609.92 while the S&P 500 climbed 10.34 points to finish at 797.87. The bad news is that this was the sixth straight down quarter for stocks. The good news is that things have changed dramatically over the last few weeks. Since March 9, the S&P 500 has added 18% which is the best 16-day run in over 25 years. The index just wrapped up its best month since October 2002.
Consumer Confidence Is Still Low and Housing Prices Are Down
March 31, 2009
There were two important economic news items today. Consumer confidence improved slightly in March, but February was still the lowest reading since records began in 1967. Confidence and the economy tend to feed off each other. When consumers feel more optimistic, the economy improves and in turn, lifts consumers' sentiments. We're currently watching the reverse.
Newspaper Meltdown
March 31, 2009
The Chicago Sun-Times Media Group (SUTM) has become the latest newspaper to file for bankruptcy. It's looking pretty grim for the newspaper industry. Just recently, we've seen the Chicago Tribune, the Los Angeles Times and the Baltimore Sun all file for bankruptcy protection. The Rocky Mountain News was also recently shut down. The Seattle Post-Intelligencer is now web only. There have also been major job cuts at the Houston Chronicle and the Atlanta Journal-Constitution.
Wagoner Out at GM
March 30, 2009
Rick Wagoner has resigned as chairman and CEO of General Motors (GM). The move was part of a deal with the Obama administration for the car company to get more bailout money. Unfortunately, GM faces many more hurdles in the weeks and months ahead. Rather than helping GM, the Obama administration's agenda will probably hurt the company, specifically their "cap and trade" plans.
Was March 9th the Bottom?
March 30, 2009
The market has opened lower this morning on news that the White House has rejected the turnaround plans submitted by GM and Chrysler. This is a big mess and it creates a lot of uncertainty. There's no way the White House can stop the car companies from making big vehicles since that's where the profits are.
"You Have Run Out of Our Money"
March 30, 2009
I've been saying that the U.S. dollar is on course to follow the British pound into the abyss. Here's an amusing video from last week of Daniel Hannan scolding British Prime Minister Gordon Brown in front of the eyes of the world.
The Market Makes a Three-Point Landing
March 27, 2009
Historically, the best time to buy stocks is about four to five months before a recession ends. Assuming that the economy perks up in the third quarter, then March 9 will likely be the ultimate low for the S&P 500. The S&P 500 has now made three significant lows, followed by three impressive reversals; on October 10, November 20 and most recently on March 9.
"The Gentlemen's Club"
March 27, 2009
MarketWatch has a great article which quotes a statement from the People's Bank of China's website saying that the U.S. financial system is a "gentleman's club." Clearly, the U.S. is going to be made the scapegoat at next week's G20 meeting in London.
The Agrium/CF Industries/Terra Industries Saga Continues
March 27, 2009
The "urge to merge" is making for some rather bizarre stories in the otherwise boring field of agricultural chemical stocks. In January, CF Industries (CF) announced a hostile takeover of Terra Industries (TRA) for $2.1 billion. Terra was against the deal because they thought the price was way too low.
First Solar Rallies on News of China's Subsidy
March 27, 2009
Shares of First Solar (FSLR) soared 12% yesterday to close over $150 per share. The stock has been on an extreme roller-coaster ride over the past few months. In June, it was over $300 a share and by November it got down to just $87. Despite the high volatility, I think First Solar is a strong buy.
Myriad Genetics Splits 2-for-1
March 26, 2009
Myriad Genetics (MYGN), one of my favorite mid-cap biotech stocks split 2-for-1 today. Shareholders now have twice as many shares and the stock price dropped in half, although the stock is up nicely today.
GDP Revised Downward
March 26, 2009
The government reported today that the economy shrank by 6.3% in the fourth quarter which was slightly below the earlier forecast of a decline of 6.2%. The major factor for the revision is that businesses had cut their inventories faster than originally believed.
The Morning Rally Fades
March 25, 2009
Historically, the best time to buy stocks is about four to five months before a recession ends. Assuming that the economy perks up in the third quarter, then March 9 will likely be the ultimate low for the S&P 500. The S&P 500 has now made three significant lows, followed by three impressive reversals; on October 10, November 20 and most recently on March 9.
American Italian Pasta Hits New High
March 25, 2009
The stock market is having another good day. The Dow got as high as 7,862. It's hard to believe that just two weeks ago, we were treading water around 6,500. One of my favorite Emerging Growth stocks, American Italian Pasta (AIPC), just hit another new high. The company is the largest maker of dry pasta in North America. American Italian Pasta is also a commodity play since it benefits from higher wheat prices. AIPC's consumer brands, such as Mueller's, Golden Grain, Heartland, R&R and Mrs. Grass, are staples on supermarket shelves throughout the U.S. and overseas.
A Preview of First-Quarter Earnings
March 25, 2009
The upcoming first-quarter earnings season will be the seventh straight quarter of falling earnings for the S&P 500. The earnings outlook has deteriorated rapidly. On October 1, Wall Street expected the S&P 500's first-quarter earnings would rise by 25.7%. By January 1, Wall Street was looking for a decline of 12.5%. Now analysts expect a decline of 34.1%.
Ditch the Dollar?
March 24, 2009
Next week, the G20 will be meeting in London to discuss reforming the world's financial system. One idea that's been floated is to ditch the dollar as the world's reserve currency. Any move like that won't happen at a meeting by a lot of men and in women in nice suits. Instead, it will be a judgment of the world's investors. The latest person to call for replacing the dollar as the world's reserve currency is Zhou Xiaochuan, who's a governor at People's Bank of China (aka the Chinese Fed).
Navellier Seminars
March 24, 2009
I'll be speaking in Newton, Massachusetts tonight at the Boston Marriott Newton and tomorrow I'll be Greenwich, Connecticut, at the Hyatt Greenwich. You're welcome to attend at no cost, but please call 800-454-1395 to register.
Time to Sell Sohu.com
March 24, 2009
I've been a big fan of Sohu.com (SOHU), but the time has come to sell this stock into strength. The shares have been trending downward ever since the company announced that it's spinning off ChangYou.com, its gaming division. This is infuriating to me because the gaming segment of Sohu is why I liked this stock in the first place. I really wonder what company executives are thinking.
Stocks Rise Close to 500 Points
March 23, 2009
Today was an excellent day for stocks. The Dow soared 497.48 points to close at 7775.86. Over the last 10 sessions, the Dow has added 1228 points. Obviously Wall Street is pleased with tim Geithner's Bank Plan. I think a lot of investors were just looking for an excuse to buy. The market was strong pretty much across the board. I was happy to see that the market rallied into the close.
Tiffany's Earnings Plunge 76%
March 23, 2009
The market continues to look strong today. At noon, we're up 319 points. Lately, I've been discussing how some high-end retailers are doing poorly while some at the low-end are thriving. Today Tiffany (TIF) reported that its quarterly profits fell 76%. Clearly, dismal holiday sales hurt their bottom line. As bad as their earnings were, they actually beat expectations so the stock is doing well today. For now, I rate Tiffany a hold. I rate Wal-Mart (WMT), which caters to more budget-minded shoppers, a strong buy.
The Market Rallies on the Bank Plan
March 23, 2009
The market seems to be initially pleased with the government's bank plan. The Dow is currently up 160 points.
Bank Plan to Be Announced Today
March 23, 2009
This is going to be an important week for the stock market. The biggest news will be the unveiling of the Obama administration's bank rescue plan later today. In fact, Asian markets have already rallied strongly in anticipation. Clearly, the markets prefer certainty over uncertainty.
Xerox Issues Profit Warning
March 20, 2009
Xerox (XRX) became the latest big-name company to warn of an earnings shortfall. The company said that its sales for January and February were 18% below last year's level. Earlier, Xerox had said to expect first-quarter earning between 16 and 20 cents per share. Now the company said that earnings will range between three and five cents per share. That's a major revision.
Sector Performance During Quantitative Easing
March 20, 2009
Here's a look at how different Japanese stock sectors performed when they used quantitative easing (3/19/2001 ‐ 3/9/2006): Basic Resources.....................................130.0% Insurance...............................................129.2% Oil & Gas................................................120.5% Chemicals................................................90.4% Autos & Parts...........................................72.6% Utilities.....................................................62.0% Financial Services.....................................59.2% Retail........................................................48.2% Industrial Goods & Services......................48.2% Construction Materials..............................41.6% Personal & Household Goods....................38.5% Banks........................................................36.7% Food & Beverage.......................................24.4% Travel & Leisure.........................................19.4% Health Care................................................-8.7% Media........................................................-10.0% Telecom....................................................-10.6% Technology...............................................-26.2% (Source: Ned Davis Research)
FedEx and Oracle
March 19, 2009
There were two recent earnings reports that I want to highlight. The reason is that one was very good while the other wasn't so good, and that underscores the nature of today's market. Some companies and sectors will be big winners while others will be left behind. The first was from FedEx (FDX) which had an awful fiscal third quarter. Sales dropped by 14% and earnings plunged by 75%. The company also announced job cuts but it didn't specify how many.
Thanks Ben!
March 19, 2009
One day after Fed said it was entering the T-bond business, the effects of our investment strategy are playing out well. Oil has broken out to reach its highest level of the year. Shares of energy stocks like Occidental Petroleum (OXY) and Southwestern Energy (SWN) are up nicely today. Gold is up around $70 today and the dollar is continuing to slide.
Microsoft Still Interested in Yahoo
March 19, 2009
Microsoft's (MSFT) CEO Steve Ballmer said that they're still interested in a merger deal with Yahoo (YHOO). Last year, Microsoft offered Yahoo $31 a share, but Yahoo rejected it. That was not a smart move. Yahoo is currently around $14 a share. Although Microsoft has a large cash horde, I don't think buying Yahoo would be a wise move for them. Yahoo's fundamentals are simply too weak. At Portfolio Grader, I give Yahoo failing grades for both Earnings Growth and Earnings Momentum.
Congress Passes 90% Tax on AIG Bonuses
March 19, 2009
Congress just passed a 90% tax on AIG's bonuses. What a joke! They didn't write the bill correctly the first time, so they just wrote a new bill to get the money back. I think Milton Friedman said that he was glad for government incompetence because it at least made the government less efficient.
Today's Fed Statement
March 18, 2009
The fact that the Fed is now buying Treasuries brings some clarity, and right now, any certainty is welcome. The question now is, will China sell all of its Treasury holdings? A lot of traders have been shorting Treasuries, so today was a rough day for them.
General Mills Post Profit Decline
March 18, 2009
One of my favorite consumer stocks, General Mills (GIS), posted a decline for its fiscal third-quarter earnings. The stock is currently down in today's trading, but as I look over the earnings report, I think it's really good news. Getting to the numbers, General Mills earned 79 cents a share which was eight cents less than the Street's consensus. But here's the key--the company raised its full-year earnings forecast to a range of $3.87 to $3.89 a share.
IBM to Buy Sun
March 18, 2009
The markets are buzzing this morning with the news that IBM (IBM) is about to buy Sun Microsystems (JAVA) for $7 billion. Shares of JAVA are up about 60% in this morning's trading.
Today's CPI Report
March 18, 2009
The Consumer Price Index (CPI) rose by 0.4% last month which was 0.1% more than Wall Street expetected. The core rate, which excludes volatile food and energy prices, rose by 0.2% and was also 0.1% higher than expectations.
What the Fed May Do
March 17, 2009
The Federal Reserve is meeting today in Washington. These policy meetings used to be big events but since the Fed has basically done away with interest rates, the meeting outcomes aren't such a big deal anymore.
The Geography of a Recession
March 16, 2009
The New York Times has a fascinating graphic showing the unemployment rate by county across the country. Notice how the job losses have hurt the West Coast hard as well as some spots in Michigan and the Deep South, while the Great Plains have hardly been touched.
Saudis Say Oil Needs to Rise
March 16, 2009
Stocks are up in early trading today, which means this could be the fifth straight daily gain for Wall Street. There are a few important news items today. One is that the Saudi Oil Minister said that oil needs to be between $60 and $75 a barrel in order to bring new oil resources to the market. I think he's right. As long as oil is cheap, few people are going to bother with more expensive alternatives. I continue to believe that oil along with many other commodities is poised to climb a lot higher. That's why our strategy is to focus on commodity stocks.
The Best Stock Wall Street Doesn't Know About
March 13, 2009
Ebix (EBIX), one of my new Emerging Growth stocks this month, just reported solid earnings for the fourth quarter. Revenue rose 65% to $20.14 million, and earnings-per-share came in at 66 cents compared with 40 cents for the fourth quarter of 2007. That's very impressive growth.
U.S. Trade Deficit Reaches Six-Year Low
March 13, 2009
This is the final trading day of what's turned out to be a very good week for stocks. Frankly, it's about time. I want to caution investors not to get too excited about the turnaround. Investors should continue to focus on fundamentally superior stocks. This is not a market that will not lift all boats.
The Bernie Madoff Rally
March 12, 2009
I said that Tuesday was the "Ben and Barney and Rally." So I guess today is the "Bernie Rally." As CNBC spent much of the day focused on Bernie Madoff's guilty plea, the Dow added 239.66 points to close at 7,170.06. This is the first time this year that the Dow has rallied for three straight days. This is also the first time this month that the Dow has closed above 7,000. Perhaps the catalyst was Mr. Madoff who pleaded guilty on every count against him. Guess what they were doing right around the corner from the courthouse? Filming the latest episode of "Law and Order." How's that for irony? Sentencing will happen on June 16, and Bernie faces a maximum of 150 years in prison.
See You in 2159; Bernie Madoff Goes to Jail
March 12, 2009
Bernie Madoff pled guilty this morning to all charges against him. Bail was revoked and he now faces a maximum 150-year sentence. Fortunately, the market seems to be enjoying the news and we're holding on to a nice gain. The Dow is back over 7000 and this could be our first three-day rally for the Dow since the final three days of the year.
Flat Opening Today But There's Positive News
March 12, 2009
Today is shaping up to be another flat day on Wall Street. I think that's a good sign because after previous big rallies like we had on Tuesday, the market tended to give those gains back quickly. At least, a lot of folks are still holding on. There are a few pieces of good economic news. For example, retail sales for January were revised up to 1.8% from the original number of 1.0%. For February, retail sales fell by 0.1% but that was ahead of forecasts. Also, if you exclude auto sales, retail sales were up 0.7% last month.
Axsys Technologies Soars
March 11, 2009
One of my favorite defense stocks, Axsys Technologies (AXYS), is putting itself on the auction block . The company is asking for "roughly" $60 a share which is a huge premium over yesterday's close of $27.37. The market is taking the news very seriously. At one point today, AXYS reached $39.25--that's a one-day gain of 44%!
More Mega-Mergers in Big Pharma
March 11, 2009
On Monday, Merck (MRK) announced that it's buying Schering-Plough (SGP) for $41 billion. This was only the latest big buyout in the world of major pharmaceutical companies, and I expect more to come. Once Pfizer (PFE) made its move for Wyeth (WYE), Merck simply had to respond. In fact, I nearly added Schering-Plough this month's Blue Chip Growth Buy List (the issue will be live next Monday).
Buckle (BKE) Is the Strongest Retail Stock
March 11, 2009
Apparently, no one told teenagers we're in a recession. Consider Buckle (BKE), the teen retailer, which continues to be one of my favorite retail stocks. This morning, the company reported fourth-quarter earnings of 74 cents a share which is an impressive increase over the 63 cents it earned during the fourth quarter of 2007. This comes at a time when many retail stocks are reporting big earnings drops and announcing layoffs.
Boots and Coots Delivers a Good Earnings Report
March 10, 2009
The market is having a nice rally this morning. I should you warn you that the real test will come in the final 30 minutes of the trading day (3:30 to 4). If we see continued buying going into the close, then we'll know there's more conviction to this market. As I've been saying, what I really want to see is a day with a weak opening followed by a strong and continued intra-day reversal. That will be a key sign that the bulls are starting to gain control of this market.
Twlight of the Dollar
March 9, 2009
You're heard me talk a lot recently about why I think the dollar is headed for a big fall. Here's an excellent graph showing why I'm so bearish on the greenback. This shows the growth of federal debt held by foreign investors.
Preview of the Week Ahead
March 9, 2009
Here are some stunning statistics: Since the market's peak in October 2007, the stock market has lost $11 trillion in valuation. That includes $2.6 trillion in this year alone. Nearly half of all stocks in the Wilshire 5000 are now trading at less than $5 a share, and more than one-third are under $3 a share.
Merck to Buy Schering-Plough in $41 Billion Mega-Merger
March 9, 2009
The big news this morning is that Merck (MRK) is buying Schering-Plough (SGP) for $41 billion. This is the latest mega-merger in the pharmaceutical industry. A few weeks ago, Pfizer (PFE) announced a $68 billion merger deal with Wyeth (WYE). What caught my attention about today's deal is that Merck is financing nearly half of it in cash. This is a very important message to investors because it's a reflection of how cheap the stock market is.
Emergent Biosolutions Up 13%
March 6, 2009
Shares of Emergent Biosolutions (EBS) are doing very well today on its earnings report. Actually, the company's earnings plunged but that's not what the market is reacting to. The company makes the BioThrax vaccine for anthrax which is mostly purchased by the U.S. government. Due to an order delay last quarter, Emergent's sales dropped by 60% and earnings dropped by 95%.
FSYS Misses Earnings, So Sell This Stock
March 6, 2009
On Thursday, Fuel Systems Solution (FSYS) came out with its fourth-quarter earnings report and the numbers were just plain awful. First, let me apologize for recommending this stock. Needless to say, I'm very upset with this company. Here are the details: Fuel Systems, a maker of alternative fuel components, posted lower quarterly earnings and forecast weak revenue for 2009. The shares slumped by about 25% on Friday. The company posted fourth-quarter net income of just $641,000, compared with $4.8 million a year earlier. Equally troublesome was that Fuel Systems forecast revenue of $330 million to $360 million for 2009 which was far below what I expected. That kind of guidance is just inexcusable.
Unemployment Rate Soars to 8.1%
March 6, 2009
The Labor Department reported this morning that the unemployment rate rose to 8.1% last month. That's the highest rate in over 25 years. The economy shed 651,000 jobs in February. The job losses for December and January were also revised higher. Over the past three months, the economy has lost nearly two million jobs. That's an average of over 150,000 job losses per week. Honestly, we got lucky today. It could have been much worse.
Navellier Investment Seminars
March 5, 2009
I'm holding two investment seminars in the Midwest next week. On Tuesday, I'll be at the Sheraton Overland Park Hotel in Overland, KS. Then on Wednesday, I'll be at the St. Louis Airport Marriott in St. Louis, MO.
The Market Reels Again
March 5, 2009
Today was another painful day on Wall Street. The Dow dropped 281.40 points to close at 6594.44. The S&P 500 reached its lowest level in 12-1/2 years. What we're seeing is the opposite of irrational exuberance, it's irrational pessimism. All the bad news is coming at once. Today, GM's (GM) auditors said that the company may not be viable. I can't say I'm surprised. Citigroup (C) fell below $1 a share. For the fifth straight week, the Labor Department reported that more than 600,000 Americans filed claims for unemployment benefits.
The Value/Growth Gap Continues to Widen
March 5, 2009
I wrote about this recently but I want to touch on it again. The performance gap between Growth and Value is getting larger by the day.
Wal-Mart Boosts Dividend By 15%
March 5, 2009
The market is down again in early trading this morning. One bright spot is Wal-Mart (WMT). The retail giant announced that it's hiking its quarterly dividend by 15% to 27.25 cents a share. This is very good news and it's interesting because I recently discussed the importance of dividends. In particular, I singled out Wal-Mart for its long-term track record of yearly dividend increases. The company has now raised its dividend every year for the last 35 years.
Fuel Systems to Report after the Bell
March 5, 2009
Get ready for the closing bell today because that's when one of my favorite alternative energy stocks reports its fourth-quarter earnings. Over the last several quarters, Fuel Systems Solutions (FSYS) has developed a nice habit of embarrassing Wall Street's earnings forecasts and soaring dramatically higher the next day.
The Market Finally Rallies
March 4, 2009
After dropping for 11 of the past 12 sessions, the stock market finally put on a nice rally today. The Dow gained nearly 150 points to close at 6,875. In fact, if it weren't for some selling during the last 30 minutes, the Dow could have made a run back over 7,000 (see chart below). That final half hour is very important in gauging the market's confidence.
Friday's Jobs Report Will Be Bad
March 4, 2009
With all the bad news this week, I thought I'd pass along some good news. An asteroid buzzed the Earth on Monday just missing us by less than 50,000 miles. In planetary terms, that's a close shave. The asteroid measured by 69 feet and 154 feet in diameter so it could have done some real damage.
Obama: Stocks Are a Good Deal
March 4, 2009
Meeting with British Prime Minister Gordon Brown yesterday, President Obama said: "What you're now seeing is profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal if you've got a long-term perspective on it."
Bernanke Speaks, the Market Falls
March 3, 2009
About that morning rally...it looks like I spoke too soon. Or rather, it was Ben Bernanke who did the speaking. Once the Fed Chairman started his testimony before the Senate Banking Committee, the Dow immediately started losing ground. By noon, we were down close to 50 points. (I really wish these guys gave their talks after the bell.)
MasTec Reports Very Good Earnings
March 3, 2009
Wall Street seems to be enjoying a small relief rally this morning after yesterday's rout. One of my favorite Emerging Growth stocks, MasTec (MTZ) announced very strong earnings after the closing bell yesterday. The shares are doing very well this morning.
Investors Should Appreciate Dividends
March 3, 2009
Standard & Poor's recently projected that dividend payouts will fall by 13.3% this year. That's the biggest drop off in dividends since 1942. We've already seen several major companies slash their dividends in an effort to cut costs. JPMorgan Chase (JPM) lowered its dividend by 87%. General Electric (GE) announced its first dividend reduction since the Great Depression. Yesterday, PNC Financial Services Group (PNC) said it will cut its dividend by 85%.
Dow -299
March 2, 2009
Today was an historic day for the stock market. The Dow plunged 299.64 points to close at 6763.29. The numbers are just plain ugly. All 30 Dow stocks were down, and Citigroup (C) dropped by 20%. What used to be the world's largest and most important financial institution is now worth just $1.21 a share. For the year, the Dow is down nearly 23% which is about the same as the one-day market crash in 1987.
Buffett: "The economy will be in shambles throughout 2009"
March 2, 2009
On Friday, Warren Buffett released his annual chairman's letter to Berkshire Hathaway (BRKA) shareholders. These letters have become famous on Wall Street, and every year investors are curious to see what the legendary Oracle of Omaha has to say.
AIG Is Set to Post the Largest Quarterly Loss in History
March 2, 2009
The futures markets are pointing to another lower opening. In fact, the Dow could open below 7000 this morning for the first time in nearly 12 years. The big news weighing on the market is that the government is giving American International Group (AIG) another $30 billion in taxpayer money. The insurance company is expected to report a loss of $62 billion. That's an astounding figure. Very few companies are worth that much. In fact, very few companies have ever been worth that much.
Top Chinese Internet Stocks
February 27, 2009
One of the more remarkable stories of recent years has been the phenomenal growth of the Internet in China. Only thirty years ago, China was seen as a hopelessly backward state. Today, it has one of the fastest-growing economies in the world.
Q&A: Bank of American Is a Bust
February 26, 2009
How can Bank of America survive the credit crisis? In my opinion, it can't.
Great Earnings from Fluor and Flowserve
February 26, 2009
After the bell yesterday, two of my favorite stocks reported very good earnings. Fluor (FLR), a construction company heavily involved in oil and gas, reported fourth-quarter earnings of $1.04 a share which was 12 cents better than forecasts. Operating profits rose 30% over last year. The company sees 2009's earnings between $3.90 and $4.20 per share.
General Motor's Awful Quarter
February 26, 2009
This morning, General Motors (GM) reported a quarterly loss of nearly $10 billion, and the company lost over $30 billion last year. GM's cash balance is now down to $14 billion. CEO Rick Wagoner is about to ask the Treasury for even more cash so the company will make it through this year.
Stocks to Buy for Endless Deficits
February 25, 2009
Wall Street didn't rally after the president's address. As the deficits mount and the dollar weakens, this will alter the investing landscape. Here's my latest on how to invest when the budget deficit is high.
Obama's Speech: What It Means for Investors
February 25, 2009
Last night, President Obama spoke to a joint session of Congress to lay out his economic plans. His plan has three major points. The first is to set up a new lending fund designed to get bank lending back on its feet. The crucial issue for the administration is to take the toxic assets off the balance sheets of banks. Once that happens, banks will be in much better shape to resume lending.
Why I Like Apple
February 25, 2009
I was surprised to see Apple (AAPL) get downgraded today by Shebly Seyrafi of Calyon Securities. Basically, he thinks that Apple's products are too expensive. He may be right, but I have to say that I'm not so concerned about Apple's pricing.
Value Is at a New Low, But Not Growth
February 24, 2009
Here's a look at how the Russell 1000 Growth and Value Indexes have performed since the November 20 low.
Iron Man Boosts Marvel's Bottom Line
February 24, 2009
Marvel (MVL) is doing very well today thanks to the success of the DVD release of Iron Man. For the fourth quarter, the company earned 80 cents a share which was a huge jump from the 35 cents a share it made last year. The consensus on Wall Street was for 71 cents a share, and sales doubled to $224 million.
Still Above the Low
February 24, 2009
Although the Dow made a new multi-year low, the S&P 500 hasn't yet. Yesterday, the S&P 500 got down to as low as 742.37 which was just above the November 21 intra-day low (note the red line on the chart below).
Obama's Economic Stimulus - Pork and Butterflies
February 23, 2009
The president will be addressing a joint session of Congress. With the Dow at an 11-year low, we all need some cheering up. Here's my latest on why Obama's stimulus package failed to stimulate Wall Street.
JPMorgan Chase Slashes Dividend By 87%
February 23, 2009
JPMorgan Chase (JPM) surprised Wall Street by announcing an 87% cut in its quarterly dividend. The bank will now pay five cents a share each quarter, down from 38 cents a share previously. The company said that this move will allow them to save $5 billion a year.
Best Bets in Health Care
February 23, 2009
Last week, I shared some of my favorite health care stocks with you. Today, I want to go over some prominent health care stocks whose outlook doesn't look so bright. Bear in mind the difference between a successful health care stock and an unsuccessful one can be huge.
My Thoughts on the Geithner Bank Plan
February 23, 2009
Earlier, I criticized Treasury Secretary's Geithner's bank bailout plan. More specifically, I called on him to resign before he embarrasses Obama even more. The plan still lacks a lot of detail but here are my thoughts on the four major points.
The Nationalization of the Banking System Is Underway
February 23, 2009
The big news this morning is that Citigroup (C) and the Feds are currently discussing whether the government should increase its ownership stake to as much as 40%.
Obama Needs to Give Us the Specifics of His Housing Plan
February 23, 2009
Last week, I posted the video of CNBC reporter Rick Santelli railing against the Obama administration's $75 billion to help struggling homeowners. His call for a new Tea Party struck a raw nerve and was carried on virtually every major network. It was so serious that White House has been trying to do damage control.
Cowen and Company Upgrades MasterCard to Outperform
February 21, 2009
Cowen and Company is upgrading MasterCard (MA).
Why I'm Pleased with Today's CPI Report
February 20, 2009
The Consumer Price Index report for January came out this morning, and it was inline with forecasts. Consumer prices rose 0.3% last month. Core prices rose 0.2% which was 0.1% above consensus.
Billionaire Allen Stanford Found in Virginia
February 20, 2009
The manhunt is over. The missing billlionaire R. Allen Stanford has been found in Virginia. The SEC has been investigating him for fraud.
Sector Preview: Health Care
February 19, 2009
Here's my latest look at the health care sector. This is a particularly good sector to invest in during periods of slow economic growh.
Spartan Motors Is Stopped Out of Quantum Growth
February 19, 2009
Spartan Motor's (SPAR) stock is getting knocked down today and it fell below my stop-loss price in Quantum Growth. For the fourth quarter, Spartan reported earnings of nine cents a share which was below estimates.
Billionaire Allen Stanford Goes Missing
February 19, 2009
Wall Street is currently being rocked by another scandal. Billionaire Allen Stanford is being investigated for fraud. There's one little problem: No one knows where he is. Now investigators are looking at any place he might be.
Sprint Posts Loss
February 19, 2009
Here's a story that we're going to see more of. Sprint Nextel (S) cut costs but still posted a fourth-quarter loss of $1.6 billion. Still, that's a lot better than last year's loss of $29 billion.
The Dow Is Retesting Its Low
February 18, 2009
The Dow is about to make a new closing low today although we haven't yet broken the intra-day low.
Southwestern Energy: Strong Fundamentals
February 18, 2009
One of my favorite energy stocks is Southwestern Energy (SWN). The company is due to report earnings next week. Bloomberg recently profiled some upcoming earnings reports and they quoted Shawn Price, one of my top analysts.
The Resurgence of China
February 18, 2009
While the U.S. market is retesting its November low, some world markets are doing well. One example is China. After a rough patch, Shanghai has resumed its leadership as the world's best-performing stock market this year, hitting a new 5�-month high last week.
Looking at the Auto Bailout
February 17, 2009
Here's my latest on the auto bailout and the car industry as a whole. I'll give you a hint: It doesn't look good.
Obama Signs the Economic Stimulus Bill
February 17, 2009
The Washington Post reports: "President Obama today signed into law a $787 billion economic stimulus plan that he said begins "the essential work of keeping the American dream alive in our time."
Ugly Morning
February 17, 2009
The market is getting hit this morning. There seem to be concerns over the government's banking plan, or rather, lack of plan. The market, meanwhile, is retesting its November low. The morning, the Dow has been as low as 7,560, which is just barely above the November 20 closing low of 7,552.29.
The Eurozone Faces Its Worst Recession in 50 Years
February 17, 2009
The economic news coming out of Europe continues to be grim. Europe's GDP contracted 1.5% in the fourth quarter (vs. the previous quarter), the largest quarterly drop since the euro-zone began keeping such records, in 1995. Even more worrisome, the largest economy in the euro-zone, namely Germany, posted a 2.1% GDP contraction in the fourth quarter, the largest GDP quarterly decline in over 20 years. The next largest euro economies, France and Italy, followed suit, declining 1.2% and 1.8%, respectively in the fourth quarter. Overall, the euro-zone faces its worst recession since the 1950s.
The Stimulus Bill Passes
February 14, 2009
Yesterday, the U.S. Senate approved the compromised stimulus bill by a vote of 60 to 38. President Obama will sign the bill into law next week. The final bill totals $787 billion and 1,100 pages.
Stock Recommendations for President's Day
February 13, 2009
The stock market is closed on Monday in honor of President's Day. (Technically, the New York Stock Exchange prefers to celebrate it as George Washington's birthday instead of the more modern President's Day.)
House Passes Economic Stimulus Bill
February 13, 2009
The House of Representatives just voted 246 to 183 to pass the compromised economic stimulus bill that was agreed to earlier this week. The Congressional Budget Office said the bill will ultimately cost $787.2 billion. The bill now goes to the Senate.
Wells Fargo Revises Earnings
February 13, 2009
I would have hoped that by ringing the opening bell, I would have sparked a rally. No such luck. The market is being weighed down by a major downward earnings revision from Wells Fargo (WFC).
Ringing the Opening Bell
February 13, 2009
Here's a video of me ringing the opening bell this morning at the New York Stock Exchange.
What I Like in Retail Stocks
February 13, 2009
The retail sector continues to be in a lot of trouble. Abercrombie & Fitch (ANF) just reported horrible earnings for the fourth quarter. Sales plunged 19%.
How the Government's Plans Affect You
February 12, 2009
Well, I've said it before, and I'll say it again: Continue to steer clear of the financial sector for the foreseeable future, and don't go bargain hunting in bank stocks. And don't get too depressed about Tuesday's big declines--the market has shown resilience since then, including a very dramatic rally in late trading today.
Valentine's Day Stocks
February 11, 2009
This Saturday is Valentine's Day. Here's a look at some stocks that are associated with the trappings of each February 14.
Growth Takes the Lead
February 11, 2009
Although the market is down this year, there's a wide spread between growth and value. The sharp decline is value stocks is hardly surprising considering that 20% of the value index is in financials compared with just 3% for the growth index.
MasTec Poised to Profit from Obama's Stimulus Plan
February 11, 2009
Investor's Business Daily recently profiled MasTec (MTZ), one of our Emerging Growth stocks:
The Senate Passes the Stimulus Bill
February 10, 2009
The vote was 61 to 37. The CBO says that the bill will cost $838 billion over the next 10 years. Now the House and Senate need to get together to work out a final bill.
Geithner Announces Bailout Plan
February 10, 2009
This morning, Treasury Secretary Tim Geithner announced the government's plan to bailout the U.S. banking system. Here's are the details of Geithner's bailout plan:
According to Buffett's Method, Stocks Are Attractive
February 10, 2009
Fortune has a great graph showing the relationship between the stock market and the Gross National Product. This is an important metric because, according to Warren Buffett, stocks are attractive when their market value is 70% to 80% of GNP. We're at that point now.
Stimulus Bill Clears Hurdle
February 9, 2009
The economic stimulus just cleared a big hurdle earlier this evening. The Senate voted 61-36 to shut down debate. This paves the way for a vote on the bill tomorrow. However, even when the bill passes, we're still not done. Leaders from the House and Senate will have to get together to work out the differences between their respective bills.
Just 5% of Stocks Are Rated as Sells
February 9, 2009
One of the key metrics in my stock-picking methodology is earnings surprises, which is how much companies beat Wall Street analysts with their earnings reports. I've tested this variable time and time again over 25 years and it constantly leads me to superior stocks, just as we're seeing this morning with Sohu.com (SOHU).
Sohu.com's Earnings Rise Over 240%
February 9, 2009
Sohu.com (SOHU) reported outstanding earnings this morning. A few weeks ago, SOHU said to expect fourth-quarter earnings-per-share of $1.20 to $1.25. This morning, the company said it earned $1.35 a share. For last year's fourth quarter, Sohu.com earned 39 cents a share so that's growth of over 240%.
Stimulus Bill Showdown
February 9, 2009
Today is going to be an eventful day in Washington and on Wall Street. President Obama is putting a lot of pressure on the Senate to pass the stimulus bill. The Democrats are going to hold a procedural vote later today which will gauge how much support they have. This could have a big impact on trading. The president isn't leaving anything to chance--he's going to hold a prime-time news conference in an effort to build support for the stimulus plan.
China Now Buys More Cars than America
February 9, 2009
How lousy are car sales? Consider that for the first time ever U.S. vehicle sales fell below China's. January U.S. vehicle sales fell to 656,976 vehicles--the lowest monthly sales figure since December 1981. Chrysler's sales fell by 55% and Ford (F) fared the "best" of the Big 3 with a 40.2% sales decline. GM's (GM) sales fell 48.9%, despite GMAC being reclassified as a bank.
President Obama Pushes for the Stimulus
February 6, 2009
Well, it looks like President Obama has a temper. We'll soon find out who's the most powerful man in America. If the stimulus plan passes, then the answer is Barack Obama. If it fails, then the answer is Rush Limbaugh.
Today's Rally
February 6, 2009
The market is rallying today and considering the lousy jobs report this morning, that's a good sign. My guess is that 10% of this rally is on the hopes that the Democrats will get their economic stimulus bill passed. The other 90% is on the hopes that Secretary Geithner's bad bank plan announcement on Monday will help the banking system get back on its feet. Expectations are extremely high for Geithner.
Moody's: U.S. Financial Position Deteriorating
February 6, 2009
Unemployment Hits 7.6%
February 6, 2009
The jobless rate for December reaches 7.6%, the highest in 16 years. The economy lost nearly 600,000 jobs last month.
Morning News
February 5, 2009
There are two major news items this morning.
Ackerman Lays into the SEC
February 5, 2009
Yesterday Harry Markopolos testified before Congress. He's the money manager who warned the Securities and Exchange Commission about Bernie Madoff and his Ponzi Scheme. Actually, he actually warned the SEC several times, but the agency still did nothing.
Obama Wants Salary Caps for Execs at Bailed Out Banks
February 4, 2009
President Obama said that he wants to cap executive pay at bailed out banks to $500,000 a year. Naturally, this would be a huge incentive for banks to avoid seeking any public funds.
Illumina Soars
February 4, 2009
One of my favorite Emerging Growth stocks, Illumina (ILMN) is surging higher in today's trading. The company is involved in genetic testing and its business has been red-hot lately (here's a great profile of Illumina from Wall Strip).
Looking Ahead to Friday's Jobs Report
February 4, 2009
On Friday morning, the government is going to release the jobs report for January and I expect it will be a disaster. I think the economy lost at least 500,000 jobs last month. For December, the unemployment rate was 7.2% and that number could go rise to 7.5% for January, which would be worst jobs market in 16 years.
True Religion Jeans Are a Cult Classic
February 4, 2009
The LA Times looks at Jeffrey Lubell, the man by behind True Religion Jeans (TRLG). Here's a sample:
The Future for Flir Systems
February 3, 2009
The Dollar Miraculously Rises!
February 3, 2009
With U.S. deficits skyrocketing, along with mushrooming money supply, I can't see how the dollar can rise much further. The dollar may have gotten a shot of steroids at last week's World Economic Forum in Davos, Switzerland, where the U.S. dollar was in the spotlight. For instance, China's Premier Wen Jiabao called for more regulation of "major reserve currencies" (i.e., the dollar), while Russia's Prime Minister Vladimir Putin called over-reliance on the dollar "dangerous." Putin bluntly called for the development of multiple, regional reserve currencies. Putin also mocked U.S. businessmen, who (he said) had boasted last year at Davos about the U.S. economy's fundamental strength and "cloudless" prospects." He gleefully mocked Wall Street by saying "Today, investment banks, the pride of Wall Street, have virtually ceased to exist."
The Fed Pledges to Keep Throwing Money
February 3, 2009
The Federal Reserve just announced that it's extending all existing liquidity programs.
Tax Tip
February 3, 2009
If you didn't get last year's tax rebate, you might now qualify.
Another Retest for the Dow
February 3, 2009
The Dow closed yesterday at 7,936.83--its lowest level since November 20, which marked the lowest close of the last five years.
Morning Headlines
February 3, 2009
Here are some important news items ahead of the opening bell.
No Miracles on 34th Street
February 2, 2009
Lately, I've been talking about the horrible outlook for the retail industry. Except for some niche areas, the whole sector is a minefield. The latest bad news comes from Macy's (M). The company aggressively cut prices during the holidays--sometimes as much as 60%. Still, that didn't help.
The Bad Bank Plan Is Taking Shape
February 2, 2009
The first act by the new Treasury Secretary Tim Geithner seems to be the creation of a huge new "bad bank" to buy toxic assets and dispose of them.
Monday Headlines
February 2, 2009
Here are some important news items affecting today's trading:
The Fed Seems Overwhelmed with Financial Crises
February 2, 2009
At the Federal Open Market Committee's two-day meeting last week, with the Federal Funds rate already near zero (ranging between 0% and 0.25%), the Fed effectively ran out of bullets. The market responded with a rise in the three-month Treasury bill rate, which more than doubled from 0.11% to 0.24% in the wake of last week's troubling Treasury auction. Despite the fact that short-term rates doubled last week, the Fed hinted that it would consider buying long-term Treasury bonds to monetize some debt, which is a fancy way of saying that they would print more money.
Super Bowl Investing
January 30, 2009
This Sunday is the 43rd Super Bowl which pits the Pittsburgh Steelers against the Arizona Cardinals. The Steelers are currently seven-point favorites, but did you know of the connection between the stock market and the Super Bowl?
Flowserve Raises Guidance
January 30, 2009
Flowserve (FLS) won't report its first-quarter earnings until February 25, but the company gave us a nice preview today. Flowserve said that its 2009 earnings will be "somewhat above the high end" of its earlier forecast. The earlier forecast was $7.20 to $7.50 per share.
Economy Shrank by 3.8% in the Fourth Quarter
January 30, 2009
The government reported that the economy shrank by 3.8% for the last three months of 2008. That's the biggest drop in 25 years. The numbers could have been much worse:
Timken Earns Seven Cents a Share
January 29, 2009
Timken (TKR), one of my Quantum Growth stocks, just reported disappointing earnings for the fourth quarter. The company lost 38 cents a share, however, if you just look at earnings from continuing operations, which is the key, the company earned a profit of seven cents a share. Still, that was 10 cents below Wall Street's forecast.
The House Passes the Stimulus Plan
January 28, 2009
Terra Rejects CF Industries' $2.1 Billion Bid
January 28, 2009
I'm not sure if this is smart. CF Industries (CF) offered a pretty rich premium for Terra (TRA).
Golden State Blues
January 28, 2009
On Friday, California's State Employment Development Department announced that the state's unemployment rate rose to 9.3% in December, up from 8.4% in November, reaching the highest rate in 15 years. Over a million Californians lost their jobs last year. (More than 1.7 million of California's 37 million residents were unemployed in December, up from only 650,000 in the same month a year ago.) The state's annual deficit is now $42 billion, caused by a dramatic drop in tax revenues. This trend will likely push the state's deficit up to $50 billion later this year.
More Earnings Reports
January 28, 2009
A few weeks ago, I listed Yahoo (YHOO) as one of five big-name stocks to sell now. Here's what I wrote:
Knight Capital Is Exiting the Hedge Fund Business
January 27, 2009
The Wall Street Journal reports that Knight Capital Group (NITE) is selling off its hedge fund business. My only complaint is that they're probably selling at the low, but make no mistake, this is a very good move on NITE's part. Their hedge fund business has been a drag on earnings and I like to see company's focus on their core businesses and not get involved in messy side business. Knight Capital is a very strong buy.
Growth Is Rapidly Contracting Around the Globe
January 27, 2009
Up until last year, China had been growing at double-digit rates for several decades. But last Thursday, China's National Bureau of Statistics announced that its economy expanded by only 6.8% in the fourth quarter and 9% for all of 2008. Chinese growth was cut in half from the same quarter in 2007, when China's GDP was growing at a 13% annual pace. Rising unemployment and a series of labor protests have now raised governmental concerns about social stability.
McDonald's Earnings Report
January 26, 2009
The market is getting a nice lift this morning. McDonald's (MCD) reported strong earnings of 87 cents a share which was four cents better than consensus. The only weak spot was that sales were a bit below what the Street wanted to see so the shares have pulled back slightly. This is simply some near-term profit-taking. The important news is that MCD had a good quarter in face of many economic challenges. I'm also happy to see that the company is planning to invest $2.1 billion of its own money to open 1,000 new restaurants. That's the kind of bold actions I like to see. McDonald's is a strong buy.
What to Expect from This Week's Davos (and FOMC) Meetings
January 26, 2009
This week, the annual global economic conference in Davos, Switzerland will be in the news. In past years, the stars of the World Economic Forum were the bigwig corporate executives. This year, economists and politicians will likely emerge as the stars of the global economic firmament. In fact, the organizers brag that this year's meeting will feature a record number of world leaders, including 40 heads of state, 17 finance ministers and 19 central bankers - but few business stars.
The New Knight of Trading
January 23, 2009
Yesterday, Knight Capital (NITE), one of my Quantum Growth stocks, reported very good earnings and the stock jumped over 10%. Excluding a gain from an investment, NITE earned 56 cents a share for the fourth quarter. The consensus on Wall Street was for earnings of 38 cents a share. Total revenues jumped 28.2%. It looks like all business units were strong except for asset management which is certainly understandable.
Hedge Funds End Worst Year Ever
January 23, 2009
I've tried to explain to investors that much of the recent selling pressure in the market and in commodities hasn't come from individual investors, but from battered hedge funds. Bloomberg has some statistics:
In Lean Times, McDonald's Only Gets Fatter
January 21, 2009
Time is the latest media outlet to climb aboard the McDonald's (MCD) bandwagon. Last week, it was the New York Times. The tough economic times are good for a low-cost restaurant like McDonald's but that's not the whole story:
ABT Shows Earnings Matter
January 21, 2009
One of my favorite stocks, Abbott Laboratories (ABT), released a great quarterly report before the market opened, and has been rising all morning as a result. I've said it before and I'll say it again: Following stocks with strong earnings is the only way to profit in this difficult market.
Our Merging Emerging Stocks!
January 16, 2009
Great new today! Two of our Emerging Growth stocks are getting hitched. CF Industries (CF) is offering to buy Terra Industries (TRA) for $2 billion in stock. The proposed deal is that TRA owners will get 0.4235 shares of CF for each TRA share they own. Terra's board said that it's considering the deal.
My Take on Bank of America
January 16, 2009
I've never trusted Bank of America (BAC) under Ken Lewis, which is rated "D - Sell" in PortfolioGrader Pro. The reason for my distrust is that the bank has always tried to massage its earnings numbers each quarter. I can't stand when companies try to do that.
The Citigroup Empire Dismantles
January 14, 2009
One year ago, I wrote: "In the end, I expect Citigroup will be broken into pieces and eventually be a shell of its former self." Today we learn that the company is finally taking my advice:
Insteel Beats the Street
January 13, 2009
Earnings season is getting off to a good start for my Quantum Growth Buy List. I like selected steel stocks in Quantum despite the tough environment for the industry. For the best steel stocks, the outlook isn't nearly as dire as some folks think.
Looking at Earnings Season
January 12, 2009
Earnings season got off to its start today with Alcoa (AA) reporting its first quarterly loss in six years. Wall Street was expecting a loss of just five cents a share. Alcoa lost 28 cents a share.
AZZ Blows Past Estimates
January 9, 2009
This morning, one of my top Emerging Growth stocks, AZZ Inc. (AZZ), reported outstanding third-quarter earnings of 88 cents a share. That's seven cents more than Wall Street was expecting. The company also guided higher for 2009's earnings. AZZ now sees a range of $3.35 to $3.45 a share for this year, although their sales guidance wasn't as strong as I would have preferred. The stock is up nicely this morning.
Today's Awful Jobs Report
January 9, 2009
Ugh. The U.S. economy lost 524,000 jobs last month and the unemployment rate is now 7.2%. Last year, the economy shed 2.6 million jobs.
A Look at Sykes Enterprises
January 7, 2009
One of my favorite Quantum Growth stocks is Sykes Enterprises (SYKE). It's a fascinating small-call stock (just $800 million). I recently came across a good article on the company. Here's a sample:
Fed Predicts Economy Will Get Worse
January 6, 2009
The Federal Reserve just released the minutes from its meeting held three weeks ago. Here's what they said...
Crude Oil Is Back Over $50
January 6, 2009
Now that crude oil futures are back above $50 per barrel, it's clear that oil prices won't stay low forever. The fact is that oil is a seasonal business. Every spring, demand soars as farmers fire up their tractors. Then in the summer, the demand for electricity rises.
Happy New Year
January 1, 2009
Last year was a year many investors would like to forget. The New York Times lists some of the details:
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