Market Update Archives - Money Morning - Only the News You Can Profit From
Wal-Mart Stores Inc. (NYSE: WMT) Earnings Preview: Whether a Hit or a Miss, Don't Buy
Thursday, Wal-Mart Stores Inc. (NYSE: WMT) will report fourth-quarter earnings before opening bell. A challenging retail environment and recent restructuring are likely to keep Wal-Mart from beating – or even meeting – expectations.
That's just one reason investors should steer clear of Wal-Mart stock.
The retail superstore has missed Wall Street expectations in three of the last eight quarters and averages a 1% stock loss in the week following earnings.
This time around, it is expected to report fourth-quarter earnings per share (EPS) of $1.37 on revenue of $130.55 billion, compared with a profit of $1.67 per share on revenue of $127.92 billion in the same quarter a year ago.To continue reading, please click here...
Has a Stock Market Correction Started?
This week's bearish numbers have some investors claiming a stock market correction has begun.
The Dow Jones Industrial Average slumped 0.52%, or 85 points, this week through market close on Wednesday and is on track for more significant losses today (Thursday) – around 225 points (1.18%) so far.
But Money Morning Defense & Tech Specialist Michael A. Robinson points to one big reason that's making him optimistic this is not correction territory. Watch this interview from his appearance today on FOX Business' "Varney & Co." to find out this bullish signal:To watch the video, please click here...
Your 2014 Investment Watch List
It's been a great year for the U.S. stock market. The Standard & Poor's 500 Index is up about 25%, and the Dow Jones Industrial Average has climbed 23%.
And Money Morning's gurus have done even better than that for their subscribers this year…
Chief Investment Strategist Keith Fitz-Gerald decoded an 80% gain for readers of his Money Map Report with an insurance company that pays out a super dividend.This is where serious investors will want to begin their year...
Stock Market News Today: These Retailers Down Amid Poor Q3 Earnings
Stock Market News Today, Nov. 21: U.S. stocks are continuing to rally today as the 30-year fixed mortgage rate dropped to 4.22% this week from 4.35% last week, and despite the fact that data showed manufacturing activity slowed this month.
The Philadelphia Fed's manufacturing index for October was 6.5 last month, down from 19.8 in October and below economists' expectations for 14.5. That data indicates slowing, but still positive general manufacturing activity.To continue reading, please click here...
Key Earnings Reports This Week
Some key earnings reports that came in stronger than expected pushed markets higher Friday, to end the week with a gain.
Google Inc. (Nasdaq: GOOG) had its best profit growth in more than a year. The 12% jump in revenue helped push shares over the $1,000 mark Friday. Morgan Stanley (NYSE: MS) hit a 52-week high Friday after reporting it swung to a profit thanks to strong revenue from its retail brokerage arm. And General Electric Co. (NYSE: GE) soared to a five-year high Friday on solid Q3 results and Chief Executive Officer (CEO) Jeffery Immelt's statement that the company is "ready for a really strong fourth quarter."To continue reading, please click here...
The Nobel Prize for Market Timing Goes to… Cliff?
According to the Efficient Market Hypothesis (EMH), the best – and perhaps only – way to outperform the market over time is simple:
First, claim that beating the market over time is virtually impossible. Then, take home $1.2 million for "proving" it.
That was Professor Eugene Fama's approach, anyway, after co-winning the Nobel Prize in economics.
Don't get me wrong. As a professional investor and portfolio manager, I believe Professor Fama's EMH has many valid ideas. But fundamentally, people like us (and Buffett, and Soros, and Rogers, and Lynch, and Einhorn, and Paulson, and Icahn, and Ackman) never swallow EMH whole.
Ironically, neither does Clifford Asness.
Why would one of Fama's brightest students decide to ditch EMH, and pick stocks and time the market instead?Proving EMH "right" may be worth millions (to Fama). But proving it "wrong" is worth billions..
By the Numbers: Ten Incredibly Interesting Facts for You to Know
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.To continue reading, please click here...
Stock Market News Today Why We Predicted This 10% Gainer Would Soar
Stock market news today focuses on winners and losers in the tech and consumer spaces, as well as how the S&P 500 will come off of its largest weekly decline since June.
Last week was tough for stocks since this year has been filled with rallies. Stocks fell as investors tried to understand the timing of the Fed's tapering of its bond-buying program.
Surprisingly, the market still seems very sensitive to any news on the Fed cutbacks.
This week, the market may continue to react to any news from the Fed, although other economic indicators are likely to be in the foreground of investors' minds.
Stock market news today starts with Japan, which we learned saw gross domestic product rise 2.6% at an annualized pace from April to June – well short of the 3.6% growth economists expected. The Nikkei was down more than 5% last week and is down another roughly 1% this morning.
Why the Housing Market Recovery is Bypassing Young Buyers – and What that Means to the Market
Think of the housing market as a ladder with first-time homebuyers at the bottom and homeowners on the upper rungs, with homes priced higher as you proceed upward.
The first-time homebuyers make it possible for those in the lower-priced homes to sell and move up to costlier homes, which in turn enables the sellers of those homes to move up to costlier homes – and so on.
But amid the housing market recovery – sales of new and existing homes are up and prices have been rising – many first-time buyers are being shut out of the market.
And that has far-reaching implications for the market as a whole, given the role those first-timers play in creating demand from the bottom of the ladder.
"They're the first rung of the ladder," Douglas Duncan, senior vice president and chief economist at Fannie Mae, told Money Morning.
Dark Pools of Liquidity Are a Big Problem for Free Markets
by Greg Madison, Associate Editor, Money Morning
Everything runs on liquidity. Unless you know something I don't, that dollar bill in your pocket is just as likely to buy a can of Pabst Blue Ribbon today as it was yesterday, and will be tomorrow.
Or you could sell 1,000 lbs. of gold – if you have that lying around – without fear of completely scuttling the global gold market. Your bank has to have cash, liquidity, lying around somewhere in the back if it wants to stay in business.
And in many cases, it's easy to see or verify this liquidity. It helps everyone feel better about doing anything.
But there are markets where this liquidity is kept off the open exchanges, where it can be used to juice up huge deals. Or it can prevent these huge deals from having the impact that they "should" have, keeping the hands of large traders hidden.
These are the sinister-sounding dark pools of liquidity.
Dark liquidity is generated and stored in a variety of ways, most of which are possible due to the huge variety of trading venues, electronic and traditional.
With dark pools, neither the size of the order nor the entity making that order can be known until the order is completed. Rosenberg Securities Inc. estimates that fully 15% – trillions of dollars – of all trades occurring on American exchanges, every day, utilize dark pools.
Not Playing Straight Poker
And the markets, like nearly everything else, operate on the wide availability and transparency of good, reliable information. A poker game gets its lurid thrills from the partial presence of that information, or the possibility that the information could be faulty. You wouldn't want to play with all your cards face-up. You just don't know, and that's why it's fun to play poker.
But the markets, despite some inkling to the contrary, can't function with true optimum efficiency if good information isn't available to the widest possible group of participants.
It's not that a player has to have the information, but it should be available to the player if things are going to work the way they should. One is a vying, gambling game, and the other is a free market. We should be able to tell the difference.