Stock Market

Goldman Sachs' "Warehouse Shuffle" Just Cost You $5 Billion

Construction forklift

It's just another game for Goldman Sachs Group (NYSE: GS) - a "warehouse shuffle" that moves aluminum around while the big bank collects rent on the metal.

Although the rent on the stored aluminum - Goldman isn't allowed to actually own the commodity - is just pennies a day, the vast amount of the metal it has stored in its 27 Detroit warehouses and the "warehouse shuffle" strategy that enables it to extend the rental period for months on end adds up.

Through the Metro International Trade Services subsidiary it bought in 2010, Goldman has accumulated 1.4 million tons of aluminum, which it stores at about 48 cents per ton per day. That's about $672,000 per day of revenue - nearly half a billion a year.

Experts say the warehouse shuffle game ultimately raises the price of aluminum to manufacturers - everything from beer and soda companies to automakers. That extra cost, about $5 billion over the past three years, is passed on to consumers - you and me.

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Why This Stock Market Sell-Off Will Continue

shah-sell-off A global stock market sell-off sent the Dow Jones Industrial Average down more than 200 points Monday in morning trading.

Money Morning Capital Wave Strategist Shah Gilani joined FOX Business' "Varney & Co." to answer the big question: Will the stock market sell-off keep going?

Watch Gilani's full interview to find out how two huge factors will keep pushing down markets that have been falling since Ben Bernanke triggered triple-digit losses last week.

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Stock Market Today Reverses Painful Two-Day Plunge

A sense of calm appeared to settle over the stock market today - one day after the Dow's worst of the year. The Dow was up nearly 90 points near the close Friday.

Gold prices, pushed below $1,300 an ounce Thursday, its lowest level in some two-and-a-half years, also bounced back Friday.

Equity and commodity markets sold-off Wednesday and Thursday on worries the U.S. Federal Reserve could begin winding down its market supportive stimulus program later this year.

St. Louis Fed President James Bullard, who dissented against the FOMC meeting decision Wednesday, said in a statement Friday the central bank "should have more strongly signaled its willingness to defend its inflation target" and shouldn't have given Fed Chairman Ben Bernanke the authorization to provide an approximate timetable to end easing.

Bernanke's comments are indeed blamed for the stock market's steep two-day drop.

The Dow plunged 354 points, 2.3%, Thursday to close at a seven-week low. Over Wednesday and Thursday, the Dow shed 560 points, the blue chip index's biggest drop since November 2011. The CBOE Market Volatility Index (VIX) soared 23% Thursday, above 20 and a fresh 2013 high.

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Shah Gilani: "You've Got To Be In It To Win It"

shah-gilani-youve-got-to-be-in-it-to-win-it

Appearing on Fox Business, Capital Wave Strategist Shah Gilani engaged in the age old debate: Bullish or bearish?

Shah made the bullish case, saying the stock market's rising and investors may want to jump in.

"I think you got to be in it to win it," Gilani said. "You got to stay in the market as long as the trend is up."

On the other side was Dan Shaffer of Shaffer Asset Management. He had a decidedly bearish view, warning of a "deflationary depression"

Check out the lively debate between Gilani and Shaffer in the accompanying video.

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Stock Market Today: June off to a Guarded Start

The first trading day of June got off to a muted start at the opening of the stock market today.

Shortly before noon, the Dow Jones Industrial Average added 34.66, or 0.23%, to 15,150.23. The Standard & Poor's 500 Index slipped 6.42, or 0.39%, to 1,624,32. The Nasdaq gave back 33.87, or 0.98%, to hit 3,422.04.

Market participants were hoping for a rebound in today's stock market following Friday's steep sell-off.

Jitters over tumbling Japanese stocks and worries about the Fed winding down its market-supportive bond-buying program sent stocks spiraling Friday, the last trading day of May.

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Why the Bulls Are Back in the Stock Market Today

The stock market today is off to a strong start with the Dow Jones Industrial Average up more than 150 points around noon.

Right out of the gate, the Dow advanced 107.78, or 0.70%, to 15,410.88, the Standard & Poor's spiked 14.82, or 0.90%, to 1,664.42, and the Nasdaq jumped 40.47, or 1.17%, to 3,499.61.

Boosting the stock market today were accommodative comments from international central banks that the printing presses won't be turned off anytime soon.

The Bank of Japan and the European Central Bank both reaffirmed that their easy money policies will remain intact as long as necessary. The news sent European and Asian markets all up more than 1%, with the momentum spilling over to the United States.

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Stock Market Today Reacts to Merger Monday on Wall Street

It was a muted start for U.S. equities when the stock market today (Monday) opened. But by mid-day, the bulls were back and benchmarks marched higher.

Just before noon, the Dow Jones Industrial Average rose 13.41, or 0.09%, to 15,354.40. The Standard & Poor's 500 Index added 2.54, or 0.15%, to 1,670.01. The Nasdaq was higher by 6.42, or 0.18%, to 3,505.39

Year-to-date, the Dow is up 17.17%, the S&P up 16.92% and the Nasdaq 15.88%. Moreover, the number of stocks in the S&P hitting 52-week highs rose to 37.2%, according to Bespoke Investment Group, proof the rally is indeed broad based.

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Stock Market Today: Starting the Week in the Red

The stock market today (Monday) paused on news that a U.S. Federal Reserve policy shift may not be as far away as people think.

Just before noon, the Dow Jones Industrial Average was lower by 34.22, or 0.23% at 15,084.27. The Standard & Poor's 500 Index was flat at 1,632.97. The Nasdaq eked out a 0.02% gain, or 1.08 points, at 3,438.12.

Last week, equities continued their seemingly unstoppable climb with the Dow and the S&P closing at records several times. The Dow ended the week up 1%, the S&P 1.2%, and the Nasdaq 1.7%.

Now with all three indexes up 15% year-to-date, many investors have turned cautions.

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Why the S&P 500 is Actually Nowhere Near an All-Time High

Magic rabbit

Celebrations of the S&P 500's recent string of all-time high closes have been premature, as it turns out.

S&P 500 All-Time High

Yes, the Standard & Poor's 500 index set another nominal record today (Tuesday) with a close of 1,625.96.

But that doesn't account for inflation. If you apply Yale Professor Robert Shiller's CAPE ratio, the S&P 500's all-time high was somewhere north of 2,000 back in the year 2000 - some 24% below today's record close.

While that might sound like great news for Wall Street's bulls, Shiller's data - which has proven strikingly accurate at predicting long-term market trends - isn't nearly so optimistic about where the markets are headed over the next decade.

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Stock Market this Week: Will Dow Soar Past 15,000?

The Dow Jones Industrial Average hit 15,000 Friday - so will the stock market this week see another new high?

Money Morning Chief Investment Strategist Keith Fitz-Gerald joined FOX Business' "Varney & Co." program Monday morning to discuss how much higher the market can go. Listen to Keith's take on what's ahead for investors.

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