Stock Market Today Archives - Page 16 of 33 - Money Morning - Only the News You Can Profit From
A Dozen Reasons to Be Investing in Graphene
Graphene – the lightest, strongest, most flexible material ever made – could revolutionize our way of living, which is why now is the time for investing in graphene.
Graphene, which is 200 times stronger than steel, could make "invisibility cloaks" for the military that will hide tanks and other military vehicles; create bendable, flat-screen TVs that you can roll up and take with you; and lead to major breakthroughs in healthcare, to name just a few of its potential uses.
The graphene industry is expected to have 40% annual growth over the next seven years, going from the $9 million industry it is today to a $126 million market, reports Lux Research, an independent research firm focused on emerging technologies.
We at Money Morning saw graphene's potential early.
"Stronger than steel and lighter than a feather, this high-tech medium will shape virtually every part of our daily lives by the end of this decade," Money Morning Defense and Technology Specialist Michael Robinson wrote in December 2011.
And with these new developments, graphene is certainly on its way to changing the products we use every day – which is why more people are asking about investing in graphene.
Chinese Firms Increase Stakes in U.S. Shale Oil Projects
According to Bloomberg News, Chinese energy companies, both state-run and private, are seeking to invest more than $40 billion in U.S. shale energy.
Readers may remember the Chinese oil and gas producer CNOOC Limited's (NYSE: CEO) $19 billion bid for U.S.-based refiner Unocal, which was rejected by federal regulators in 2005. (Unocal later merged with Chevron Corp.)
Although CNOOC was recently able to complete a $15.1 billion purchase of Nexen Inc., a Canadian oil and gas company with assets in the Gulf of Mexico, outright takeovers of U.S. energy assets by Chinese companies are probably still not welcome.
Chastened by its experience with Unocal, CNOOC has not attempted to buy any U.S. company outright.
However, after developing a relationship with Chesapeake Energy Corp, (NYSE: CHK), CNOOC has purchased stakes in specific Chesapeake projects in Colorado and Wyoming.
"They didn't come over here and try to buy Chesapeake," Chesapeake CEO Aubrey McClendon told The Wall Street Journal. "They came over here to buy a minority, non-operating interest in an asset and not take the oil and gas home."
So why do the Chinese want to invest billions of dollars to fund shale oil and shale gas projects in the United States when it won't be able to export the energy products back to China?
The Next U.S. Shale Oil Boom Could Be in California
The U.S. shale oil boom has hit Texas and North Dakota – and is now looking to take over the Golden State of California.
California's Monterey Shale formation covers 1,750 square miles from southern to central California and is believed to contain more shale oil than North Dakota's Bakken and Texas's Eagle Ford combined.
The potential of the Monterey Shale formation is enormous. According to IHS Cambridge Energy Research Associates, Monterey may hold about 400 billion barrels of oil – roughly half the amount of conventional oil that Saudi Arabia has.
The energy research director at IHS, Stephen Trammel, told CNNMoney, "Four-hundred-billion barrels, that doesn't escape anyone in this [oil] business."
Even if that is an overly optimistic estimate, there is enough recoverable oil there to make it worthwhile.
Dumping Apple Stock for Google: How Investors Could Get Burned
The trend has some wondering if investors are consciously moving their money from one tech giant to the other.
Why Now Is the Time to Add Australia to Your Portfolio
There weren't many developed countries that managed to dodge the worst of the financial crisis, but Australia was one of them.
With strong ties to over six billion emerging market customers yearning to adopt a more Western lifestyle, "The Land Down Under" has been left relatively unscathed.
And with interest rates that are above inflation and a veritable treasure trove of much-needed natural resources to rely on, Australia will enjoy prosperity for decades to come.
Unlike the rest of the West, what's going on there is a bona fide growth story.
In fact, according to the Economist's team of forecasters, Australia's GDP is expected to grow 2.7% in 2013. Among the world's "rich countries" that's only behind the East Asian trio of Singapore, South Korea and Taiwan — all of which are expected grow at 2.9%-3% this year.
Australia is also doing significantly better than the other Western mineral-rich economy, Canada, which is expected to grow by 1.9% in 2013.
Stocks to Buy Now: Cash in on Dividend Growth in this Energy Subsector
Income investors looking for stocks to buy in the energy space have had several prominent choices over the years.
Royalty trusts and master limited partnerships (MLPs), two asset classes abundant in the energy sector, have surged in popularity in recent years mostly due to their large payouts and high yields. MLPs have also proven popular with conservative investors due to the predictable, prosaic nature of the oil and gas transportation business that leads to a steady stream of rising dividends.
But broadly speaking, the oil services subsector has been left out of the energy dividend conversation.
Oil services investors have had only a couple options within the sector when looking for dividend stocks to buy.
Gold and Silver Prices Boosted by These Global Moves
Gold and silver prices both marched toward their largest gains in more than a week Tuesday joining the uplifting mood on Wall Street. As the Dow Jones Industrial Average reveled in a historic rally that took the benchmark to a record high, commodities also soared.
Gold prices settled Tuesday's trading session up $2.50, or 0.2%, at $1,574.90 an ounce, supported by stimulus chatter and a weaker dollar. The safe haven metal had reached as high as $1,585.80 an ounce intraday, on course for its biggest leap since Feb. 26.
Year-to-date, gold has dipped 5.7%. The commodity logged its fifth consecutive month of declines in February, marking its longest stretch of declines since 1997.
Silver prices rose 1.7% to $28.97 in early trading, their biggest gain in more than a week. The white metal ended the day at $28.81.
While silver's slip since January has been more modest than gold's, it's well below the $34.89 it traded at during the same period a year ago.
But loose monetary policies worldwide, geopolitical uncertainties, rising oil prices and renewed fears of inflation should support, if not boost, both gold and silver prices in the months ahead.
Aggressive Global Stimulus Here to Stay
Driving gold and silver prices higher Tuesday were comments from Federal Reserve Vice Chairman Janet Yellen.
At the National Association for Business Economics conference Monday, the Federal Open Market Committee's (FOMC) Yellen defended the bank's $85 billion a month of bond purchases.
"At this stage, I do not see any (risks) that would cause me to advocate a curtailment of our purchase program," Yellen said.
Yellen's sentiments mirror that of Fed Chief Ben Bernanke, who thinks continued stimulus will be good for the U.S. economy. Acknowledging there are risks from the Fed's aggressive efforts to stoke the anemic U.S. economy, Yellen added there are also risks from not being aggressive enough.
This news from overseas is also bullish for gold and silver prices…
Stock Market Today: With Dow at Record High, Will the Climb Last?
The Dow Jones Industrial Average was at a record high after nearly six years, as the stock market today (Tuesday) rallied enough to push the index up nearly 70 points at the open.
Just minutes after the opening bell, the Dow sailed passed its all-time high of 14,165 hit on Oct. 9, 2007. Less than a half-hour into the trading session the Dow roared higher by triple digits propelling benchmark to yet another record.
By 1 p.m. the Dow was up 146.99, or 1.04%, at 14,274.81. The Standard & Poor's 500 Index added 17.32 or 1.14%, to 1,542.52, leaving it in striking distance if its record close of 1,565 hit in 2007. The Nasdaq climbed 43.39 or 1.37% to 3,225.42.
Money has poured into stocks over the last several months as individuals have begun to feel more comfortable about the health of the economy – but can it last?
"The question is, can the Dow maintain these levels? The market is interested in risk-that's why the Dow is higher, why the riskier currencies are higher," Matthew Lifson, currency trader at Cambridge Mercantile Group in Princeton told Reuters.
Gold Prices Are Being Manipulated and Here's What To Do About It
If you've ever suspected gold prices are being manipulated, you're not alone–and you're right, they are.
Against the backdrop of fiscal mismanagement, political incompetence, and failed austerity measures, the world's biggest traders have all bet heavily on gold. Lately, they've been pulling out all the stops to get what they want while laughing all the way to bigger bonuses.
Today, I want to talk about who "they" are and share a few tricks you can use to capitalize on their actions without being taken to the poorhouse.
Let's begin with the concept of manipulation itself.
In order to understand the players, you have to understand their motivations. You'd think it's all about profit, but that's not entirely true.
Natural Gas Companies: Shell's Huge LNG Win
Shell will buy a portion of Repsol's LNG assets for $4.4 billion in cash and $2.3 billion in financial leases and assumed debt – more than double pre-sale estimates, according to Bernstein Research.
Tuesday's deal underscores the looming importance of LNG to natural gas companies and the global energy market.
"LNG overcomes the primary problem faced by natural gas users," explained Money Morning's Global Energy Strategist Dr. Kent Moors earlier this year. "Available supply is traditionally limited to where pipelines are running. LNG, on the other hand, cools gas to a liquid, allowing it to be transported by tankers almost anywhere by water, regasified at an import terminal, and then injected into the local pipeline network."
This opportunity means huge profits for companies – and investors – who get ahead in the LNG market.
Shell's Big LNG Win
Shell believes global consumption of LNG will double from now until 2025. Earlier this year, Shell's ECO Peter Voser said he expects gas to play a significant role over the next 40 years, with much greater growth rates than oil.
Voser said in November 2012 that Shell plans to invest $20 billion in natural gas products globally over the next few years.
One of the reasons Shell pursued this current deal was to get Repsol's stakes in a major LNG project in Trinidad and Tobago, in addition to a small project off coastal Peru. Shell previously had no presence in these emerging regions.
Operating in these regions gives Shell the ability to provide gas to Latin America, and use its Nigerian gas operations to service Asia. That'll save the company shipping costs and boost profit margins.
"This is a perfect complement to what we have. We get a West Atlantic position and an East Pacific position. These were blind spots," Maarten Wetselaar, Shell's executive vice president told The New York Times.
The deal comes with a fleet of specialized LNG carrier ships and will add 30% to Shell's LNG supplies, according to The New York Times.
Macquarie Securities estimated Shell will now have 6.6 million tons of LNG to trade, or about 20% of its total volume.
Why Natural Gas Companies are Chasing LNG