Archives for September 2013

September 2013 - Money Morning - Only the News You Can Profit From

Is This Man the Next Microsoft CEO?

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There's a shake-up brewing in the business world. Al Mulally, CEO of a rejuvenated, refocused, and red-hot Ford Motor Company, may be heading over to Microsoft, where CEO Steve Ballmer is retreating under fire. Under Mulally, Ford went from the brink of bankruptcy and irrelevance to one of the the most solid performers on Wall Street. Can Mulally do the same thing for Microsoft and move it back into the "Buy" column? Keith Fitz-Gerald joins FOX Business' Neil Cavuto to tackle this question, along with McDonalds' newest strategy and the effect of the looming government shutdown on Wall Street.

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One Quick Trade for an Extra $850 a Month

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When the Fed's "no taper" surprise sent stocks soaring to new all-time highs, it also sent bond yields plunging and bond prices soaring, as traders scrambled to cover short positions.

In fact, Treasury bonds had their biggest daily price gain in more than two years on Wednesday, Sept. 18, the day the Fed let the air out of the taper expectations. And while a drift lower in long-term interest rates (i.e., bond yields) could continue for a bit longer, there is no doubt that over the course of the next year, interest rates will rise.

So here's the smartest thing you can do right now:

Take advantage of the rally in bonds by selling bonds… and any of the "bond proxies" listed below, including utilities. Then, move the proceeds into one of the four investments I'm about to show you.

They'll give you much better long-term growth potential. And they'll send you a ton of cash, too – up to $850 a month, depending on how much money you put in.

Here's what makes these "specialty funds" so special...

Why the Government Shutdown Is Good for Investors

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The markets are already nervous over a stubborn group of Republicans threatening a government shutdown unless Democrats agree to defund Obamacare, or at least delay implementation of the healthcare law another year.

"A government shutdown starting next week is looking increasingly likely," Jim Russell, a regional investment director at U.S. Bank, told the Associated Press. "That will not be welcomed by the capital markets."

The S&P 500 has slid 2% since Sept. 19 as Wall Street watches yet another budget-battle spectacle unfold in Washington.

The problem is that the federal government only has enough money to keep the government's doors open through Sept. 30, the end of its fiscal year. Tea Party Republicans are using this deadline to try to defund the healthcare law.

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JPMorgan (NYSE: JPM) Talks $11 Billion Settlement; Q3 Earnings at Risk

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JP MorganChase & Co. (NYSE: JPM) finds itself in front of regulators yet again for misdeeds.

Chief Executive Officer (CEO) James Dimon was in Washington yesterday (Thursday) attempting to broker a settlement over the bank's sale of substandard mortgages.

Dimon met with U.S. Attorney General Eric Holder about a possible $11 billion settlement in attempts to end criminal and civil charges over JPM's questionable mortgage practices. The U.S. Justice Department said earlier in the week it could file a lawsuit over one of the bank's pending mortgage cases.

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10 Obamacare Insights from Money Morning Readers Living Overseas

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With the Oct. 1 deadline for open enrollment in Obamacare just days away, the pro- and anti-Obamacare chatter has elevated to a roar.

Just two days ago, the Obama administration released data addressing the cost of premiums in the 36 states that have opted to launch new healthcare exchanges.

On one hand, Obamacare proponents are proud that the data shows that most individuals will be able to pay around $100 per month for a policy, and some even less, depending on qualification for tax subsidies.

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Silver Prices Today: CFTC Closes Manipulation Case After Five Years

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It was a rather quiet week in the silver market. Silver prices dropped about 50 cents an ounce to trade in the $22 an ounce range.

The only real news – major news, that is – in the marketplace was the decision by the Commodity Futures Trading Commission (CFTC) to announce that its probe into silver price manipulation by the large Wall Street banks is closed without any action taken. This is after a five-year probe into the workings of the silver market.

Seriously?

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Dividend Stocks to Watch: These Telecoms Are Part of a Trap

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Investors looking for more income are pouring money into these pricey equities that are hitting our "stocks to watch" list now…

You see, both institutional and individual investors have moved out of the risk curve over the past few years to find the strongest income sources. They've explored everything from low-risk bonds to bank savings instruments.

Individual investors in particular have found it challenging to navigate the unfamiliar waters of dividend stocks.

They have rushed to invest their hard-earned dollars into familiar names that paid decent dividends, including electric utility stocks, telecom stocks, pharmaceutical companies, and large oil companies.

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By the Numbers: Ten Incredibly Interesting Facts for You to Know

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90 years is the amount of prison time looming over each of three former ICAP employees. The men face charges of conspiracy to commit wire fraud and commission of wire fraud stemming from their attempt to manipulate the LIBOR rate. LIBOR is used to price $800 trillionworth of financial instruments, from loans to derivatives. ICAP itself must pay fines of $65 million to U.S. authorities and 14 million British pounds to U.K. authorities.

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The Most Unlikely Beneficiary of the Natural Gas Boom

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An array of energy's sub-industries are making a fortune from America's natural gas boom.

Rigs, pipelines, rail, wastewater treatment, trucking, seismic imaging, well-site security… And a lot more opportunity is on the way, like the deal Kent just uncovered.

But perhaps the most unlikely beneficiary of the shale revolution is the coal industry.

After all, "King Coal" has been dethroned in recent years by the swelling supply – and bargain prices – of clean-burning natural gas. Indeed, thermal coal at the Australian port of Newcastle, the Asian benchmark price, is currently near lows not seen since November 2009.

Australian producers have especially been struggling. They've been cutting costs and paring back production because U.S. and large project financiers like the World Bank are pulling away from coal projects.

And overall, ever-increasing environmental regulation is discouraging coal-powered electricity.

But the dynamic is suddenly changing.

That's why these $19 coal shares could jump to $26...

Stock Market News Today: Dow Ends Five-Day Losing Streak

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The biggest stock market news today: After five sessions of declines – the longest consecutive streak of losses so far this year – stocks finally closed higher.

The Dow Jones Industrial Average closed at 15,328.49, for a 55.23-point gain. The Standard & Poor's 500 rose 5.90 to 1,698.67, and the Nasdaq closed up 26.33 at 3,787.43.

In stock market news today, new applications for unemployment benefits fell by 5,000 to 305,000 last week, according to the Labor Department's report today. However, that number is slightly shy of the 300,000 new applications economists expected.

As for the gross domestic product (GDP), that report was unchanged, meaning the U.S. economy grew to the reported 2.5% in the second quarter.

Here are the biggest stocks making news today:

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