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Wednesday's "Earnings Beat" Makes This The Perfect "Bad-Market" Tech Stock

In last week’s Private Briefing report Our Experts Show You the Stocks to Pick in a ‘Stock-Picker’s Market’,” Money Map Press Chief Investment Strategist Keith Fitz-Gerald identified SanDisk Corp.(NasdaqGS: SNDK) as one of three stocks to buy in the face of the stock market sell-off.

And now we see why…

  • Stock Market

  • Current "Bull Market Monday" Trend Points the Way to Maximum Market Profits Call it the "Bull Market Monday" syndrome.

    In fact, if weren't for the last month and a half of Mondays, the U.S. stock market would be a very dour place right now.

    Since the start of the 2009 fourth quarter, the Standard & Poor's 500 Index has posted positive returns on 14 of the last 16 Mondays, with an average gain of 0.85% on that first day of the week (See accompanying graphic), the Bespoke Investment Group said in a research report last week. Read More...
  • Why Fourth Quarter Earnings Season Will Bode Well for Stocks As earnings season kicks into high gear in the coming weeks, many analysts expect an abundance of good news, mostly because earnings last year were abnormally low. And that bodes well for investors.

    For the first time since the second quarter of 2007, earnings of stocks in the Standard & Poor's 500 Index should be higher than they were the year before. That would break the longest losing streak since S&P began keeping track of operating earnings in 1991.

    "It's going to be on the plus side again," James Swanson, chief investment strategist at MFS Investment Management told The Wall Street Journal.

    In fact, operating earnings for a group of companies selected by Thomson Reuters are expected to nearly triple on a year-to-year basis, mostly because of unfavorable conditions in 2008, when financial companies lost $81 billion in the fourth quarter. Read More...
  • The Seven Investment Risks to Avoid in 2010 Spurred by its best annual performance since 2003, U.S. stocks stampeded into the New Year, with the Dow Jones Industrial Average, the Nasdaq Composite Index and Standard & Poor's 500 Index posting gains of 1.49%, 1.73% and 1.60%, respectively. And while that's certainly a respectable beginning, investors shouldn't assume it signals that a bull market run its course for the full year.

    Indeed, while Money Morning's outlook for 2010 is generally positive, there are at least seven major risks that could rein in the charging bull - or even release an angry bear into the trading arena. The top risks consist of:

    Read More...
  • How Simple Investing Strategies Can Generate Maximum Profits If you're feeling overwhelmed by the investment choices and economic challenges in today's financial markets, that's understandable. As a veteran writer and investor, I can attest that it's all too easy to wander off into the weeds by getting too complicated.

    That's a big reason why - in my Strategic Advantage advisory service - we try to keep things as simple as possible. It's a strategy individual investors would do well to follow.

    If you can stay out of bear markets and participate in the largest portion of bull-market cycles, you can make a lot of money as an investor. They key idea is to make the markets work for you when they are open for business - and to get out of them when they're closed. Read More...
  • Markman on the Markets: Historic Bull Run in Bonds Points to Higher Prices for U.S. Stocks A sluggish month in the stock market has equity investors worrying about what's next.

    But those equity investors would feel so much better if they'd just spend a little time studying the credit markets. And with good reason: The bull market in credit that continues to rage in the face of this stock-market lethargy leads us to one simple conclusion.

    Stock prices have to head higher.

    Indeed, independent analyst Brian Reynolds tells us that if stocks were trading at the same level as credit, the Standard & Poor's 500 Index would already be at 1,350 - 22% above where it closed on Friday.

    For those who argue that the market has already rallied a great deal, or too much, let me just note that the S&P 500 would have to rise by another 41% just to get back to the level of three years ago. The key thing that bulls have in their back pocket is that investors are still trying to get used to the idea that the sky hasn't fallen - and have not yet priced in the prospects for a 25% increase in S&P 500 profits that we are likely to see in 2010.

    Read More...
  • Two Sentiment Indicators Investors Should Watch Want to get an edge on the market? Sentiment might be a good place to look. Sentiment tells you how the majority of investors are positioned in a particular market, giving you clues about the next short-term move. Most of the time, it's an exercise in futility. The bulls and bears are about equally balanced, […] Read More...
  • Insights on Insiders: Buying and Selling by Executives and other Corporate Insiders Can Give Investors a Profitable Advantage

    Insider stock transactions – the buying and selling of stock by corporate “insiders” – won’t tell you where the overall stock market is headed. But the analysis of this type of legal insider trading can be a handy indicator when it comes to making buy and sell decisions on individual stocks.

    In fact, by watching insider transactions, investors can actually gain an edge in certain situations, an academic researcher and leading expert on insider transactions said in an interview with Barrons earlier this month.

    Read More...
  • U.S. Companies Finding More Consistent Growth Overseas McDonalds Corp. (NYSE: MCD) yesterday (Monday) became the latest in a long line of U.S. companies to find growth overseas as domestic growth continues to falter. Although there are some signs show the United States is headed toward a recovery, rising unemployment is weighing on consumers, who continue to cut back on discretionary spending. The […] Read More...
  • What a Key Indicator Says About the Direction of U.S. Stocks This is as good a time as any to step back and look at the U.S. stock market over the last 15 years. As followers of my work well know, I like looking at the so-called Keltner Channels to understand the market’s long-term trend. Invented by commodity trader Chester Keltner in 1960, based on work […] Read More...
  • Is the Stock Market Rally For Real? By William Patalon III Executive EditorMoney Morning/The Money Map Report Is the U.S. stock market rally for real? Or have stock prices gotten a little ahead of themselves? After more than eight weeks in rally mode, it certainly appears that stock prices are outpacing economic reality. In fact, some stock market mavens are even starting […] Read More...
  • Obama’s New Stimulus Plan May Be the Needle That Pops the Treasury-Bond Bubble Frighteningly, like the rush into tech stocks, then the rush into real estate, and then the rush into commodities, the rush into U.S. government bonds has created a Treasury bubble. In a cruel twist of economic fate, passage of an aggressive Obama administration stimulus plan could further inflate that bubble - before popping it.

    The United States of America is an expensive household to run. In order to pay the nation's bills, the U.S. government levies taxes. When expenditures exceed tax revenue, the government has to borrow money. The United States borrows money by ordering the Treasury Department to sell government IOUs to investors in the form of Treasury bills, notes and bonds, known as "Treasuries."

    How much does the government owe? As of Friday, according to TreasuryDirect.gov, total U.S. public debt stood at $10,620,397,126,433.54 ($10.62 trillion) - and counting. Read More...
  • The Only Stock Market Chart Investors Need to See By Keith Fitz-GeraldInvestment DirectorMoney Morning/The Money Map Report With all the negative news that's right now permeating the global financial markets – hammering stock prices – we wouldn't blame you one bit if you wanted to stick your head in the sand. But before you cash out and take that escape route, there's a stock […] Read More...
  • The Four Tough Questions to Ask Yourself in a Tough Market By Keith Fitz-GeraldInvestment DirectorMoney Morning/The Money Map Report For investors who are used to living large, this has been the year from hell. The markets are tanking. Food costs 25% more than it did a year ago. Inflation is on the march for the first time in decades. The sky's the limit on gasoline after […] Read More...
  • Financial Fears Sweep the Globe After RBS Predicts Worldwide Stock-Market Crash By William Patalon IIIExecutive EditorMoney Morning/The Money Map Report As rocky as the global markets have been, the worst is yet to come, the Royal Bank of Scotland Group PLC (ADR: RBS) warns. RBS analysts have warned clients to brace for a full-blown crash in the global stock-and-bond markets over the next three months as […] Read More...
  • Japan's Stock Market Should Climb, But Will It? By Martin Hutchinson Contributing Editor When Japan reported its fourth-quarter growth numbers yesterday (Thursday), it surprised everyone by announcing that gross domestic product (GDP) advanced at a 3.7% annual clip – really damn good when you consider the country has no population growth at all. Meanwhile, the United States posted quarterly growth of only 0.6%. […] Read More...