While earnings reports continue to pour out each day, investors should be careful before being excitedly swayed by strong financials - there is much more of the big picture to consider.
Stocks failed to get traction in the middle of last week after Alcoa (NYSE: AA) and Intel (Nasdaq: INTC) earnings reports underwhelmed investors, and Friday they spun off the road. The culprit: Fears that recent earnings gains represented a peak, and that weak readings on the economy were more representative of current conditions.
Retail sales disappointed and the Federal Reserve cut its 2010 growth forecast. Even word that Singapore grew at a record pace of 19.3% in the second quarter couldn't lift the air of despondency on Wall Street.
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Why Upbeat Earnings Reports Mean Caution to Investors
To read why there's a cloud over Wall Street, click here.
A Year After the Bear-Market Bottom, Investors Must Still Pursue Profits – Without Ignoring Risk
With the Standard & Poor's 500 Index up nearly 70% from the post-financial-crash low it set on March 9, 2009, U.S. stocks on Tuesday recorded their second-strongest showing ever for the first 12 months of a bull market.
But that near-record-setting performance brings to light two key issues.
But that near-record-setting performance brings to light two key issues.
- First, despite the numbers that stand as evidence of the market's stunning surge, many still-shell-shocked investors refuse to label this as a true "bull market."
- And second, no matter how great a market's performance has been, the real question to answer is "where do we go from here ... and how do I position myself to maximize possible returns while mitigating risk as much as possible?"
Dubai World May Ask Banks to Take 20% "Haircut," Delay Payments to Solve its Debt Bomb
Dubai World may ask banks to take a so-called 20% "haircut" from the face values on their loans and stretch out loan maturities when it presents a restructuring plan this month. The banks may be able to avoid the haircut if they allow the state-owned investment firm to stretch payments for as long as 10 […]
Fed Says Economy Picks Up But Keeps Lid on Interest Rates
The Federal Reserve Open Market Committee (FOMC) today (Wednesday) said that the economy has improved, but kept the benchmark interest rate target at all-time lows, indicating that it is determined to nurture a budding economic recovery by providing liquidity to the financial sector. Economic activity is "picking up," the Fed statement said. The statement was […]
U.S. Turns Up Pressure Worldwide on Banks Hiding Tax Dodgers
A $780 million settlement between UBS AG (NYSE: UBS) and U.S. authorities that established a Sept. 23 deadline for tax cheats to declare they own Swiss accounts has tax dodgers on the run. U.S. citizens with offshore accounts are scrambling to avoid prosecution as the "drop dead" date for an Internal Revenue Service (IRS) amnesty […]
UBS Restructures Management, Hoping to Restore Confidence After Second Quarter Losses
By Jason SimpkinsAssociate Editor UBS AG (UBS) plans to separate its investment banking and wealth management units after reporting a fourth straight quarter of widening losses and mounting subprime-related write-downs. UBS announced yesterday (Tuesday) that it lost $329 million in the second quarter after taking another $5.1 billion hit in write-downs on subprime assets. That […]
UBS Sued for Securities Fraud
By Jason SimpkinsAssociate Editor New York State Attorney General Andrew Cuomo has brought a multi-billion lawsuit against UBS AG (UBS), accusing the Swiss banking giant of pushing billions of dollars in auction-rate securities onto ordinary investors as the market collapsed earlier this year. UBS routinely presented the troubled auction-rate securities as safe, short-term liquid investments […]
UBS Embarks on Middle East Expansion
By Jennifer YousfiManaging Editor UBS AG (UBS) yesterday (Tuesday), announced it had obtained a license to operate in Saudi Arabia, joining a growing number of financial firms looking to recoup some of the over $400 billion in global write-downs to date by tapping into the oil-fueled wealth creation occurring in the Middle East. "With over […]
UBS Shakes Up Board Amid “Likely” IRS Probe
By Mike CaggesoAssociate Editor UBS AG (UBS) was at the center of a tornado of crushing news yesterday (Tuesday), as it announced major changes to its board amidst pressure from the U.S. Department of Justice to reveal the names of top clients taking advantage of the bank's tax breaks. Four of the No. 1 Swiss […]
Changes at the Top for UBS Aim to Send Swiss Bank in New Direction
By Jennifer YousfiManaging Editor At its annual shareholder meeting yesterday (Wednesday), Swiss bank UBS AG (UBS) announced it would cut expenses, raise additional capital and replaced its chairman. Speaking before 4,200 shareholders in Basel, Switzerland, Chief Executive Officer Marcel Rohner said the bank would look to reduce expenses, particularly in its investment banking division. Story […]
UBS Estimates $19 Billion Loss, Chairman Marcel Ospel to Resign
By Jennifer Yousfi Managing Editor UBS AG (UBS) announced yesterday (Tuesday) an estimated $19 billion (12 billion Swiss francs) loss in the first quarter. As a result of the $38 billion in losses accrued by the Swiss bank since the third quarter of 2007, Chairman Marcel Ospel will step down. Due to the estimated loss, […]
Yum! Shares Rise on UBS Upgrade
From Staff Reports Shares of Yum! Brands Inc. (YUM) gained 4.25% yesterday (Monday) after UBS AG (UBS) raised its rating to "Buy" from "Neutral." The Kentucky-based Yum!, which owns such well-known brands as KFC, Pizza Hut and Taco Bell, has been doing very well in overseas markets, particularly China. And it has been on a […]
Abu Dhabi SWF and UBS Form $500 Million Joint Venture
By Mike Caggeso Associate Editor UBS AG (UBS), Europe's largest bank, and Abu Dhabi Investment Co. (ADIC), the United Arab Emirate's state-controlled sovereign wealth fund, announced they will start a $500 million joint venture that will invest in infrastructure projects. Much of the fund will focus on utility, transport, social and energy-related projects in the […]