By William Patalon III Managing Editor Money Morning/The Money Map Report Invest in the homebuilding sector at your own risk. U.S. homebuilders such as D.R. Horton Inc. (DRI), KB Homes (KB) and Pulte Homes Inc. (PHM) capped the sector's biggest two-day advance since August yesterday (Tuesday), thanks to a growing investor belief that the worst […]
U.S. Economy
Pending Home Sales Hit Record Low in August; Stocks Mixed
By Jason Simpkins Staff Writer The pending home sales index fell to a record low in August, notching the lowest showing in six years, the National Association of Realtors said yesterday (Tuesday). The index, which forecasts near-term home sales, registered 85.5. That's down from a revised 91.4 in July, according to The Associated Press. Despite […]
Jim Rogers Warns of Fallout From Fed Cuts; Says to Seek Profits in Commodities, Asian Currencies
By William Patalon III, MBA Managing Editor Money Morning/The Money Map Report It was definitely a 'Tale of Two Markets' yesterday. And despite that phrase's similarity to the Dickensian classic novel, it wasn't legendary author Charles Dickens who was dominating my thoughts as the market closed yesterday (Monday). It was legendary Contrarian investor Jim Rogers. […]
Citigroup and UBS Brace For Losses, but Dow Jones Sets Record Above 14,000
By Jason Simpkins Staff Writer On a day that two huge banks took major profit hits because of the subprime market crisis, stocks soared to record highs yesterday (Monday) on the belief that the worst of the ensuing credit crisis had passed. Citigroup (C) and UBS AG (UBS), the largest banks in the United States […]
IPOs Soar in Third Quarter, Fueled by Solar, Software and Finance Deals
From Staff Reports Two companies – one in finance and the other in software – fueled a huge surge in the value of new stock offerings in the third quarter, according to a new report by data-tracker Dealogic. Companies raised more than $12.5 billion via initial public offerings (IPOs) in the U.S. financial markets during […]
Consumer Spending Soars Higher Than Forecast
From Staff Reports The U.S. Commerce Department reported Friday that consumer spending rose more than forecast in the month of August. The 0.6% increase was the biggest in four months, according to Bloomberg News. It is good news that suggests the U.S. consumer has so far been undeterred by the credit crunch and housing slump. […]
U.S. Economy Surges in the Second Quarter, Struggles After That
By Jason Simpkins Staff Writer The U.S. economy made a strong showing in the second quarter, with growth surging at an annual rate of 3.8% — a major improvement over the anemic 0.6% advance of the first quarter, according to The Associated Press. It was the strongest quarterly showing in more than a year, the […]
Google Studies High-Speed Undersea Cable to Asia
From Staff Reports In a move that highlights both Google Inc.'s ambitious global vision – and the massive infrastructure investments required to make that vision a reality – search-engine giant Google Inc. (GOOG) is in early discussions to invest in a group looking to lay a high-speed telecommunications cable beneath the Pacific Ocean. The project […]
Warren Buffett and Berkshire Hathaway Rumored as Bear Stearns Investors
From Staff Reports Bear Stearns Cos. Inc. (BSC) shares jumped almost 7.5% yesterday (Wednesday) after the New York Times reported that the investment bank is in talks to sell a minority stake to investors including Warren Buffett. The firm is in "serious" talks with several outside investors and could sell as much as 20% of […]
Defense Contractors See No Sector Slowdown on the Horizon
By Jason Simpkins Staff Writer A number of defense-industry shares hit new highs yesterday (Wednesday), and may have more room to run, according to a report by the Associated Press. Much of the surge can be attributed to Defense Secretary Robert Gates, who requested and additional $42 billion in funding from Congress to cover expenditures […]