Wal-Mart (WMT) scores a coup of sorts as it will open stores at 12:01 AM - 8 hours before Apple (AAPL) opens its own outlets - to begin selling the new iPad. The arrangement also allows Wal-Mart to get the jump on rivals Target and Best Buy. [View news story]
The question is how many iPads does WMT have to sell...
Chris Whitmore, take your perp walk. Apple's (AAPL -0.7%) failure to hold $600 is blamed on the Deutsche Bank analyst who proclaimed around midday that AAPL's parabolic rise had gone too far. Whitmore made clear his firm was just taking profits after rising 50% since October. Many Streeters share the skepticism, but they've been burned too often in the past to say so. [View news story]
I'm 100% sure AAPL's dip was not because of one analyst. Humans think alike. A nice even level of $600 is a perfect sell point. That's all it was. Now we get to see just how bullish AAPL investors are. Will they send it above 600 quickly or will 600 become a tough ceiling that will take a strong earnings report to break through. This is the fun question.
Morgan Stanley: Look Elsewhere For Exposure To Financials [View article]
MS was unable to hold 19 twice now. The RSI is indicating MS can go higher, but if it can't push past 19 now that the 50/200SMA crossed then it's dead in the water. The 10/20SMAs may cross again in about a week if MS can move to the 18.80-18.85 range and hold steady.
I like how MS's management is focusing on securing the business (invest in Smith Barney) as opposed to hacking out higher dividends to artificially inflate the share price. But how profitable is Smith Barney? That's the question to ponder. In a bull market Smith Barney is very profitable; in a bear market Smith Barney, not so much. Time will tell us the answer.
Let's just all agree the economy is stuck between a recession and the growth we want to see. In other words, America will not fall into a recession, but any growth will be extremely slow to a point where any changes are negligible in the short term.
If we all agree on that, then the world will be a peaceful place.
The Fed unveils its doomsday scenario for the upcoming bank stress tests: how the 19 biggest U.S. banks would survive a world with 13% unemployment, a 50% drop in stocks, and a 21% tumble in housing prices. The Fed plans to release full results Thursday at 4:30 p.m. ET. (earlier: I, II) [View news story]
If housing prices fell another 21% from today's levels then homeowners would be in a worse economic situation than any test can imagine.
Bank Stress Test Results Imminent: Time To Buy Or Bail? [View article]
I'm holding a small long position in one of the five banks listed above. I'm concerned with the results of the stress tests. We saw lobbyists for a few of these banks trying to get the results to be kept secret or tamed down as to not scare the financial markets (perhaps somebody else can find a link). I'm not so sure we will get absolute positive results.
BAC and MS are well underpriced right now if they pass the stress tests. MS hasn't rallied as well in 2012. BAC on the other hand has rallied incredibly well. But both stocks took a beating last year and both have the potential to double their share price in a strong financial rally (positive stress test results). Not in one day of course.
Nobody should be expecting all of these major institutions to pass and rally hard. It's definitely possible but the risk is far from off. I'll be holding my position through the week despite my concerns. I suppose if I was managing somebody elses money I would take the position off the table until after the report is published. But since its a small position with my own money then I'm willing to take the risk.
Feb. Nonfarm Payrolls:+227K vs. consensus of +215K, +284K (revised from 243K) in Jan. Unemployment 8.3% vs 8.3% expected. Average workweek unchanged at 34.5 hours, inline. Average hourly earnings +0.1%. [View news story]
This election will be like 2004. The incumbent is far from the best choice, but the other options are all worse.
Feb. Nonfarm Payrolls:+227K vs. consensus of +215K, +284K (revised from 243K) in Jan. Unemployment 8.3% vs 8.3% expected. Average workweek unchanged at 34.5 hours, inline. Average hourly earnings +0.1%. [View news story]
The stock market is supposed to match inflation... Hence oil and stocks go up together over the long term.
Stock futures and the euro slide to red as what may have been considered a decent result on the Greek bond swap 24 hours ago registers a bit of a disappointment following this evening's whispers. S&P 500 -0.2%, the euro -0.3% at $1.3236. [View news story]
Pretty standard. Nobody knows what they want. I wonder if the usual low volume Friday will make us wait until Monday to see how the U.S. markets react to this saga...
Western intelligence agencies detected two nuclear weapons tests in North Korea during 2010; one or both of them may have been conducted for Iran, Welt Online says. The news may refute recent reports that the U.S. has no hard evidence of Iranian efforts to build a bomb. [View news story]
Zorrba's logic is sound. Zorrba simply stated the U.S. is the only country to use nukes against civilians. He didn't take sides. However your use of "Japs" indicates something else that we don't need to go into. Also the Hiroshima and Nagasaki bombs are easily debatable and no clear answer regarding it being a defensive measure can be proven.
I don't think Iran is the same thing as a 3 year old with a pistol. I mean I suppose since you base all your decisions on propaganda and bigotry against Islam then yes they are a child with a gun to you.
The stock market is surging but many chastened investors just don't care, as individual investors have pulled $8.3B out of U.S. stock funds YTD and sunk almost $10.6B into bond funds. If the little guys decide to dive in, they have a lot of dry powder to drive the market higher, S&P's Sam Stovall says, but it will be difficult for the rally to continue much longer if they don't. [View news story]
I hope these investors do not come back to equities when a top is reached. Assuming, of course, that 13,000 is not the top...
Online-reviews site Yelp (YELP) prices its IPO at $15, above the expected $12-$14 range, before its trading debut tomorrow. The price values the company at $898.1M - more than 10 times revenue, with no profits yet. [View news story]
I agree, but IF ZNGA can turn into the internet gaming giant as management is aiming for then ZNGA will be in a class above these other recent IPOs. It's a big if, but ZNGA has a large base and potential customers thanks to Facebook and apps.
Bank of America (BAC) is denying reports that it is testing plans to charge customers for keeping a checking account: "Media reports this morning provided inaccurate information. [BofA] is not planning to increase checking account fees with our existing customers." Perhaps Sen. Dick Durbin, one of the bank's harshest critics, will be satisfied (WSJ report). [View news story]
"Bank of America is not planning to increase checking account fees with our existing customers."
I think the word "existing" is very important here. BAC may in fact begin charging fees for future customers while leaving old customers alone. This would be a great way to charge fees on checking accounts without upsetting current customers.
GM says it will take a 7% stake in PSA Peugeot Citroen as part of an alliance that hopes to create $2B in cost savings, confirming earlier reports. The partnership will involve the pooling of purchasing resources, and will result in a jointly-developed car arriving in 2016. Peugeot, like GM's European division, has been struggling with massive losses, the result of weak demand and overcapacity. [View news story]
I'm getting my hopes up for Peugeot cars coming to the U.S. I hope this does lead to "cost savings" and not another drain on GM's income. GM has come a long way and it would be a shame if they start blowing money just because they have the extra cash to spend.
Sears Holdings (SHLD): Q4 EPS of $0.54 misses by $0.24. Revenue of $12.48B (-4% Y/Y) in-line with consensus. Will separate its Hometown and Outlets Businesses and certain hardware stores, which will raise $400M-500M. Completing real estate transaction for 11 stores for $270M. (PR) [View news story]
The stock was oversold prior to this. Management gave a positive outlook regarding operations and many people bought into it. It happens.
Who knows, maybe Sears will be a great turnaround story at some point. But at the same time it could be a big flop. Too risky to jump in yet.
Wal-Mart (WMT) scores a coup of sorts as it will open stores at 12:01 AM - 8 hours before Apple (AAPL) opens its own outlets - to begin selling the new iPad. The arrangement also allows Wal-Mart to get the jump on rivals Target and Best Buy. [View news story]
Chris Whitmore, take your perp walk. Apple's (AAPL -0.7%) failure to hold $600 is blamed on the Deutsche Bank analyst who proclaimed around midday that AAPL's parabolic rise had gone too far. Whitmore made clear his firm was just taking profits after rising 50% since October. Many Streeters share the skepticism, but they've been burned too often in the past to say so. [View news story]
Morgan Stanley: Look Elsewhere For Exposure To Financials [View article]
I like how MS's management is focusing on securing the business (invest in Smith Barney) as opposed to hacking out higher dividends to artificially inflate the share price. But how profitable is Smith Barney? That's the question to ponder. In a bull market Smith Barney is very profitable; in a bear market Smith Barney, not so much. Time will tell us the answer.
Feb. Retail Sales: +1.1% vs. +1.2% expected, +0.6% (revised) prior. Ex-auto +0.9% vs. +0.7% expected, +1.1% (revised) prior. [View news story]
http://bit.ly/whZ3LR
http://on.wsj.com/x0gbuo
Let's just all agree the economy is stuck between a recession and the growth we want to see. In other words, America will not fall into a recession, but any growth will be extremely slow to a point where any changes are negligible in the short term.
If we all agree on that, then the world will be a peaceful place.
The Fed unveils its doomsday scenario for the upcoming bank stress tests: how the 19 biggest U.S. banks would survive a world with 13% unemployment, a 50% drop in stocks, and a 21% tumble in housing prices. The Fed plans to release full results Thursday at 4:30 p.m. ET. (earlier: I, II) [View news story]
Bank Stress Test Results Imminent: Time To Buy Or Bail? [View article]
BAC and MS are well underpriced right now if they pass the stress tests. MS hasn't rallied as well in 2012. BAC on the other hand has rallied incredibly well. But both stocks took a beating last year and both have the potential to double their share price in a strong financial rally (positive stress test results). Not in one day of course.
Nobody should be expecting all of these major institutions to pass and rally hard. It's definitely possible but the risk is far from off. I'll be holding my position through the week despite my concerns. I suppose if I was managing somebody elses money I would take the position off the table until after the report is published. But since its a small position with my own money then I'm willing to take the risk.
Feb. Nonfarm Payrolls: +227K vs. consensus of +215K, +284K (revised from 243K) in Jan. Unemployment 8.3% vs 8.3% expected. Average workweek unchanged at 34.5 hours, inline. Average hourly earnings +0.1%. [View news story]
Feb. Nonfarm Payrolls: +227K vs. consensus of +215K, +284K (revised from 243K) in Jan. Unemployment 8.3% vs 8.3% expected. Average workweek unchanged at 34.5 hours, inline. Average hourly earnings +0.1%. [View news story]
Stock futures and the euro slide to red as what may have been considered a decent result on the Greek bond swap 24 hours ago registers a bit of a disappointment following this evening's whispers. S&P 500 -0.2%, the euro -0.3% at $1.3236. [View news story]
Western intelligence agencies detected two nuclear weapons tests in North Korea during 2010; one or both of them may have been conducted for Iran, Welt Online says. The news may refute recent reports that the U.S. has no hard evidence of Iranian efforts to build a bomb. [View news story]
I don't think Iran is the same thing as a 3 year old with a pistol. I mean I suppose since you base all your decisions on propaganda and bigotry against Islam then yes they are a child with a gun to you.
The stock market is surging but many chastened investors just don't care, as individual investors have pulled $8.3B out of U.S. stock funds YTD and sunk almost $10.6B into bond funds. If the little guys decide to dive in, they have a lot of dry powder to drive the market higher, S&P's Sam Stovall says, but it will be difficult for the rally to continue much longer if they don't. [View news story]
Online-reviews site Yelp (YELP) prices its IPO at $15, above the expected $12-$14 range, before its trading debut tomorrow. The price values the company at $898.1M - more than 10 times revenue, with no profits yet. [View news story]
Bank of America (BAC) is denying reports that it is testing plans to charge customers for keeping a checking account: "Media reports this morning provided inaccurate information. [BofA] is not planning to increase checking account fees with our existing customers." Perhaps Sen. Dick Durbin, one of the bank's harshest critics, will be satisfied (WSJ report). [View news story]
I think the word "existing" is very important here. BAC may in fact begin charging fees for future customers while leaving old customers alone. This would be a great way to charge fees on checking accounts without upsetting current customers.
GM says it will take a 7% stake in PSA Peugeot Citroen as part of an alliance that hopes to create $2B in cost savings, confirming earlier reports. The partnership will involve the pooling of purchasing resources, and will result in a jointly-developed car arriving in 2016. Peugeot, like GM's European division, has been struggling with massive losses, the result of weak demand and overcapacity. [View news story]
Sears Holdings (SHLD): Q4 EPS of $0.54 misses by $0.24. Revenue of $12.48B (-4% Y/Y) in-line with consensus. Will separate its Hometown and Outlets Businesses and certain hardware stores, which will raise $400M-500M. Completing real estate transaction for 11 stores for $270M. (PR) [View news story]
Who knows, maybe Sears will be a great turnaround story at some point. But at the same time it could be a big flop. Too risky to jump in yet.