Archives for October 2016

October 2016 - Page 6 of 25 - Money Morning - Only the News You Can Profit From

Global Equity Markets See Pressure From Downbeat U.S. Earnings Data, Lower Oil Prices

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World stock markets were mostly lower Wednesday, following some downbeat U.S. corporate earnings news, including from Apple, and as crude oil prices are slumping this week. There were also some weak consumer confidence reports coming out of the European Union Wednesday.

U.S. stock indexes are also pointed toward lower openings when the New York day session begins.

Gold prices are under mild selling pressure in early U.S. dealings.

This Ratings Agency's Fall Could Be Hugely Profitable

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I was excited to get news on Friday that the U.S. Department of Justice was breathing down the neck of ratings agency Moody's Corp. The two parties are "negotiating" over allegations of fraud relating to mortgage bonds that Moody's rated AAA from 2004 to 2007. As we all know, the bonds (and their sterling ratings) turned out to be beer-battered, deep-fried garbage in most cases.

Moody's shares had been coasting along near a 52-week high of $110, but they gapped down to $102.60 on the news and haven't come back since.

They're not likely to, either.

I'm thinking Moody's has a ways to go before it gets out of these woods, meaning its stock could sink a lot lower.

We'll all get the chance to make some money on this lemon, but first let me answer some burning questions about this company that I don't see anyone else asking, like why Loretta Lynch and the Justice Department picked now, of all times, to turn up at Moody's front door.

And the identity of the famous investor that stands to get a good burning on this news...