Archives for September 2012

September 2012 - Page 4 of 19 - Money Morning - Only the News You Can Profit From

Stock Market Today: Beware of this Stock Tumbling on Downgrades

The major headlines in the stock market today include: Housing prices continue to rise, consumer confidence strengthens and these two stocks are sending hints to investors.

  • Housing prices boost stocks– The S&P Case-Shiller national home price index which measures 80% of the U.S. housing market rose 1.6% in July from the previous month. Prices reached levels not seen since the summer of 2003, before the housing market reached its peak. The index is up 1.2% from a year earlier and July marked the third straight month that prices improved in all 20 markets the index covers. Year-over-year 16 of the 20 cities saw rising prices led by Phoenix with a 17% increase. "All in all, we are more optimistic about housing," David Blitzer, chairman of the S&P index committee, said in a statement. "Stronger housing numbers are a positive factor for other measures including consumer confidence."
  • Consumer confidence rises on job hopes– The consumer confidence index rose to 70.3 in September from August's 61.3 level. The index is at its highest level since February as consumers become optimistic towards jobs and the economy. The expectations index rose to 83.7 from 71.1 and the number of people who expect more jobs in the future increased to 18.5% from 15.8%. "That was a pretty strong reading," Eric Viloria, senior currency strategist at Forex.Com in New York told Reuters. "As confidence increases, that could be a good thing for personal consumption and spending moving forward, which also helps the economy because consumption makes a large portion of GDP."

In the stock market today here's one winner that's continuing a six-month hot streak, and one loser that could be on the verge of a rocky year.

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Apple iPhone 5 Now a Golden Goose for Verizon and AT&T

Since the debut of the iPhone in 2007, the profit parade has mostly been a one-way street – but after five years, the major wireless carriers finally figured out how to make money with the Apple iPhone 5.

That means another way for you to make money from the iPhone 5, without having to buy Apple Inc. (Nasdaq: AAPL) stock.

Apple has raked in billions while first AT&T Inc. (NYSE: T), and later Verizon Communications Inc. (NYSE: VZ), and Sprint Nextel Corp. (NYSE: S), had their margins slammed by the huge subsidies they sent to Cupertino.

But evolving consumer habits and the Apple iPhone 5's addition of LTE network technology will soon change that in a big way.

The carriers are hoping the much higher data transfer speeds of LTE – approximately 10 times faster than 3G – will coax iPhone 5 owners to use more data-heavy functions, particularly video.

"With these great networks coming on, [data] usage is going to go up. Revenues will go up," AT&T Chief Financial Officer John Stephens said at recent media and communications conference.

While the carriers will still have to fork over the same fat subsidies to Apple they always have, the new data equation means they'll make the money back much more quickly. And that will translate into bigger profits.

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If Romney Wins Election 2012, Here's What's In Store for America

While Mitt Romney's political plans are a stark difference from opponent President Barack Obama, they agree on one thing: When it comes to this year's election, "this is a very clear choice for the American people as to what America's future will look like."

They disagree, however, on what that "clear choice" is.

That's what Romney said in a "60 Minutes" interview with Scott Pelley that aired yesterday (Sunday), where he detailed his plans to restore America to fiscal health.

Romney explained he would shrink the size of the government, overhaul entitlement programs and implement individual and corporate tax breaks-all with the help of Congress.

"I'm going to win this thing," said Romney when asked if he could win the November presidential election. "Washington is broken and I think that flows from the President. I think ultimately that the buck stops with the President."

If Mitt Romney wins Election 2012, here's what he has planned for you.

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What Happens to the Stock Market in an Election Year?

With just about six weeks to go until Nov. 6, many investors are wondering how Election 2012 will affect the stock market as a whole and their portfolios in particular.

There are many theories about what can happen to the stock market following a presidential election – although the performance spread is pretty wide.

The highest election year return for the Standard & Poor's 500 Index takes us back as far as 1928, when Herbert Hoover beat Al Smith. The S&P 500 returned 43.6%.

But the heady atmosphere just before the 1929 stock market crash probably had more to do with that high return than Hoover's election-or Smith's loss.

The lowest return in the 80-year period came in 2008, when now-President Barack Obama beat John McCain. The S&P 500 dropped 37%. Once again, the 2008 financial crisis probably had a greater impact on that result than who won or lost the election.

So what is likely to happen four years later, with the economy still struggling to recover and the S&P 500 ahead about 15%?

Let's take a look.

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Marcus Misses On Both Lines - Analyst Blog

Entertainment and lodging company, The Marcus Corporation (MCS) reported first quarter fiscal 2013 earnings of 37 cents per share, which lagged the Zacks Consensus Estimate of 49 cents per share. Reported earnings also dipped below the year-earlier quarter earnings of 42 cents per share due to the absence of a key holiday weekend. The Milwaukee-based […]

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Gap, Inc. (GPS) - Bull of the Day

Based on strong second-quarter 2012 results, we have upgraded our long-term recommendation on Gap, Inc. (GPS) to Outperform. Driven by increased sales, improved margins and lower share counts, Gap's earnings of $0.49 per share for the quarter surged 40% from the prior-year period and came ahead of the Zacks Consensus Estimate of $0.48. Moreover, net […]

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The Best Place to Look For Income Today

It's a good rule of thumb: when stocks yield more than bonds, stocks are the better buy because of the potential for growth.

Believe it or not, before the financial crisis in 2008 that was hardly the case. Going all the way back to 1958, bond yields always outpaced those of stocks.

But thanks to Ben Bernanke and friends, bond yields have been driven into the basement. What's more, the central banks of the world are doing everything in the power to keep them there.

That's why investors are increasingly turning to exchange-traded funds that specialize in dividend stocks as vehicles for income.

This makes good sense for a couple of reasons. First, bond markets aren't very transparent, which makes bond prices difficult to come by, so ordinary investors get ripped off if they buy corporate bonds directly.

Second, in today's markets you will do better in a high-dividend stock ETF–especially one with an international portfolio, than you will in a bond ETF.

Let me show you why that is…

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Who Says Money Can't Buy You Love? Not the Banksters

Remember Tim Pawlenty, the former two-time Governor of Minnesota?

Remember when he made a bid for the Presidency this go-round, but bowed out after a poor showing in Iowa?

Remember that during his brief run he acted like he was a Wall Street critic, admonishing the Street to "get its snout out of the trough?" Remember that?

Remember that T.P. became national co-chair of Republican presidential candidate Mitt Romney's run for the roses?

Do you remember that T.P. was a top contender for the V.P. slot that eventually went to Paul Ryan?

Don't worry if you don't remember any of that stuff about T.P. because none of his past politics matter (he's a Republican don't you know?) now that he has a new job.

Oh yeah, with less than 45 days before his buddy Mitt faces off against a resurgent incumbent named Obama – you probably don't remember because it just happened a few days ago – T.P. quit the campaign for a new gig.

You can't blame him. Everybody loves money, and the lure of a reportedly near $2 million salary is mighty enticing. So he took the job.

Guess what he's up to now?

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How the U.S. Government Put This Critical Resource at Risk

The United States is on the verge of a crisis over a key strategic resource it once almost completely controlled.

It's a resource that's invisible, but critical to science and industry. MRI machines can't function without it.

Large research labs use it to conduct cutting-edge studies in areas such as particle accelerators and research magnets. It's also essential to scientists conducting research in a wide range of fields, including chemistry, biology, biophysics, nanotechnology, and astrophysics.

It is used in the production of everything from LCD screens to fiber-optic cables to the silicon chips used in PCs, cars, smartphones, and scores of other gadgets.

And all this just scratches the surface.

Trouble is, we're now experiencing a shortage and steadily increasing consumption means the world could completely run out of it in as little as 25 years.

That's a problem because in most cases there is no adequate substitute for it.

What is this critical strategic resource?…

Believe it or not, it's helium. And in this case it about quite a bit more than party balloons.

As I'll explain later, there is even a silver lining for investors.

Recession 2013 Doesn't Have to Kill Your Profits

With 2013 just a few months away and the U.S. on the brink of recession, now's the perfect time to prepare your portfolio with recession-proof stocks.

One way to determine how to profit during Recession 2013 is to check out what has outperformed over the past five years. During that period, the United States and other nations entered into and emerged from The Great Recession.

A key element for surviving a recession is that companies must adapt to the changing marketplace, both in the United States and abroad.

There are three companies that have proven to excel in this area, both geographically and commercially, with new product and service lines.

Plus, they're all up about 70% – 80% over the past five years, pay dividends and are likely to increase those payouts.

Let's take a look at these recession-proof stock winners.