Market Update Archives - Page 5 of 13 - Money Morning - Only the News You Can Profit From
Mobile Banking: Why VeriFone Systems Inc. (NYSE: PAY) is Positioned to Win
With the emergence of handset-driven e-commerce technology, banks, mobile-phone sellers and telecom-service providers are working feverishly to cook up a profitable recipe for the fast-growing mobile-banking business.
But with so many players setting up shop – and so many potential new mobile-payment services on the menu – the safest profit play for investors may be the one that's able to deliver all these services to end-users.
And we've identified a clear early leader.
Miracle on Wall Street: Will a "Santa Claus Rally" Bring Christmas Cheer to Investors?
Seasonal market indicators are often spotty, but the so-called "Santa Claus rally" has some solid statistical backing.
The Santa Claus rally lacks a concrete definition, but the gist of the theory is that stocks perform well in December – particularly in the period between Christmas and the first days of the New Year.
Indeed, December traditionally has been the best month for U.S. stocks. The Standard & Poor's 500 Index has posted positive returns in December 77% of the time since World War II, compared to 59% for all 12 months.
Asia's Surging Economic Growth Pushes Global IPO Market to Record High That Will Continue in 2011
Despite market volatility and a shaky economic recovery, the global initial public offering (IPO) market for 2010 is on track to hit a record high – and 2011 is poised to continue the hot streak.
A study by accounting group Ernst & Young yesterday (Wednesday) showed that funds raised through global IPOs are expected to surpass $300 billion in 2010, topping the 2007 record of $295 billion. IPOs in the first 11 months of the year collected $255.3 billion in 1,199 deals.
"New IPO filings continue to increase around the world and a large backlog has built up as companies await greater macroeconomic stability," said Gregory Ericksen, Ernst & Young's global vice chair for strategic growth markets. "We expect the current IPO momentum to continue its upward trend in 2011."
Obama Now Must Rally Democrats to Seal Tax Deal With GOP
President Barack Obama on Monday struck a deal with Republicans to extend the Bush-era tax cuts and federal unemployment insurance as well as a host of other tax breaks, but now he faces an uphill battle to convince reluctant members of his own party to go along.
Ignoring Democratic opposition, President Obama agreed to the compromise package, which cuts taxes on businesses in an effort to help the economy recover.
The deal capped weeks of negotiations between leaders in Congress and an administration team led by U.S. Treasury Secretary Timothy Geithner. Ultimately, Obama accepted a deal that contradicts his long-held position that tax cuts should only be extended for lower and middle-class earners in exchange for a 13-month extension of jobless benefits for the long-term unemployed.
Pfizer Hopes New CEO Ian Read Can Help Drugmaker Overcome Lipitor Revenue Loss
Pfizer Inc. (NYSE: PFE) surprised analysts and investors Sunday by announcing the replacement of Chief Executive Officer Jeffrey B. Kindler with Ian C. Read, the company's head of global biopharmaceutical operations. The move was made as the world's largest drugmaker prepares for generic competition for its top-selling cholesterol drug Lipitor.
After four and a half years in the top spot, Kindler suddenly announced his retirement, saying in a statement that the job had been "extremely demanding on me personally" and he needed to "recharge my batteries."
Pfizer needs sharp, powerful management to ready the pharmaceutical giant for the November 2011 patent expiration of cholesterol pill Lipitor, the world's top-selling drug. Lipitor accounted for $11.5 billion in sales last year – 23% of Pfizer's $50 billion total annual sales.
Money Morning Mailbag: Soaring Gold and Silver Prices Point to Profits in Equipment & Drilling Industries
Gold yesterday (Thursday) continued a four-day rise soaring as high as $1,399.70 an ounce as the dollar fell for a second consecutive day.
"Gold is up primarily on dollar weakness and economic optimism," Adam Klopfenstein, a senior market strategist for Lind-Waldock, told Bloomberg. "This is very positive for gold on the future inflation front."
This week Money Morning Contributing Editor Peter Krauth showed why gold and silver are still headed for gains in the New Year, following a 2010 surge.
By Yanking the Teeth Out of Dodd-Frank Act Ratings Rules, SEC Blunts Hope for Real Financial Reforms
Make no mistake: The Dodd-Frank Wall Street Reform and Consumer Protection Act is a slippery political football.
But this early attempt at reform is actually just the kickoff for a political skirmish that will pit legislators, lobbyists and other hired guns against one another on the post-financial-crisis gridiron.
These ongoing reform efforts will turn into a long affair whose outcome is far from certain.
But investors can bet on this: The millions of dollars in lobbying money that's thrown at legislators every year in an attempt to influence the regulatory rulebook will certainly influence that outcome.
Question of the Week: Black Friday Shoppers Go Online For More Deals, Fewer Crowds
"Black Friday" was once known as the day that determined holiday shoppers awoke before dawn to get in line at their favorite retailer for once-a-year discounts.
In recent years, however, Black Friday has morphed into a month-long retailing bacchanalia that's defined by extended in-store hours, Internet-only deals and smartphone-user specials.
The National Retail Federation estimated that 138 million shoppers would hit stores this weekend, and merchants hoped this shopping weekend would mark the full-fledged return of the formerly reticent U.S. consumer.
Cyber Monday: The "Online Black Friday" Signals Shift in U.S. Holiday Shopping Trends
U.S. retailers are hoping consumers' growing shift to online shopping will carry Black Friday's spending momentum through this week, which kicked off with Internet-only deals and discounts on yesterday's "Cyber Monday."
The Monday after Thanksgiving in the past few years has evolved into one of the biggest online shopping days of the year. The number of Cyber Monday shoppers has almost doubled in the past five years, from 59 million in 2005 to an estimated 106.9 million in 2010, according to the National Retail Federation (NRF).
Last year, shoppers spent $887 million on Cyber Monday, according to research firm comScore Inc. (Nasdaq: SCOR), and analysts expect a higher turnout this year.
What to Expect from the Federal Reserve's Next Round of Quantitative Easing
The U.S. Federal Reserve today (Wednesday) is all but certain to announce a second round of quantitative easing – "QE2."
Most analysts believe the Fed will pledge to buy another $500 billion in U.S. Treasuries, but I think it will go even further. My expectation is that $500 billion in Treasury purchases over six months will be just a first step, and that the full amount contemplated – as much as $2 trillion – is much larger than consensus.
This view is based on an analysis by Goldman Sachs Group Inc. (NYSE: GS) chief domestic economist Jan Hatzius that suggests current interest rates, at 0% to 0.25%, are 700 basis points too high. In plain English, the Goldman analysis suggests that interest rates would have to be -7% to achieve the Fed's goals.