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Market recap: Stocks fell and investors fled to safety in reaction to the Fed's enhanced...

Market recap: Stocks fell and investors fled to safety in reaction to the Fed's enhanced concerns about deflation. Techs especially took it on the chin after Adobe's dim outlook and Microsoft's disappointing dividend hike. Gold hit another high at $1,296.20 before paring its gains a bit, the dollar continued to fall sharply, and Treasurys rose. NYSE decliners led advancers two to one.
Comments (8)
  • Tack
    , contributor
    Comments (13576) | Send Message
     
    In the current pessimistic mentality, even dividend hikes are bad news. Don't know whether to laugh or cry. (think I'll laugh)
    22 Sep 2010, 04:33 PM Reply Like
  • psbjr
    , contributor
    Comments (35) | Send Message
     
    Pessimistic mentality? We're in a depression! Its hard to be an optimist unless you're seriously out of touch with reality.
    22 Sep 2010, 09:29 PM Reply Like
  • nightfly
    , contributor
    Comments (1017) | Send Message
     
    What u call "pessimistic", obviously to support ur (perma-bull) views, most would call realistic - a predominate view in this decade long bear market. I guess u just don't get it. Enjoy your rally while it lasts.
    22 Sep 2010, 04:48 PM Reply Like
  • citizenleung
    , contributor
    Comments (259) | Send Message
     
    Adobe fell back to where it belonged, as its meteoric rise the last few weeks was entirely unjustified.

     

    As for Microsoft, the dividend might be relatively small, but the dividend grew a healthy 23%. Maybe investors were looking for a 2004-style special dividend, considering the billions of dollars Microsoft has thrown down the toilet over the past decade.
    22 Sep 2010, 04:49 PM Reply Like
  • mobyss
    , contributor
    Comments (2044) | Send Message
     
    Why is it hard to understand why MSFT's dividend-hike is disappointing?

     

    Have you considered that if MSFT has nothing else to do with its money - no product R&D, no strategic acquisitions, no future use for billions of dollars that has any promise of paying off, then maybe that means that the tech sector will NOT be leading the country out of recession this time? And tech ALWAYS leads the country out of recession. If not tech, then what - housing? Auto manufacturing?

     

    If Microsoft clearly sees no good use for this cash other than giving it back to shareholders, then that is a sad commentary on the state of software innovation and near-term technology advancement.
    22 Sep 2010, 04:58 PM Reply Like
  • Hendershott
    , contributor
    Comments (1586) | Send Message
     
    The Fed didn't tell anyone anything they didn't already know. MSFT is, and always has been, shall we say, thrifty. ADBE hasn't been a hot growth company for a long time. All the news seems like a whole lot of nothing. Ah, the economy is struggling and in danger of a double dip. That's in the news every ten minutes, in every publication, radio, TV broadcast and all over YouTube. Who, on the planet, doesn't already know it. What moves markets is what you don't already know, one way or the other.
    22 Sep 2010, 09:38 PM Reply Like
  • theknightpilot
    , contributor
    Comments (2) | Send Message
     
    The dividend is insane! How can you justify raising money in bonds and then farting it out to stock investors? That is why it is bad news. Take from one investor group to reward another. Ridiculous and infuriating for bond holders.
    23 Sep 2010, 12:46 AM Reply Like
  • citizenleung
    , contributor
    Comments (259) | Send Message
     
    That Microsoft will use the debt offering to fund buybacks is not a secret (it doesn't need the money for the dividend--it's payout ratio is a paltry 25%). If bondholders knew that going in and would be infuriated by such actions, then why did they line up to buy five-year notes at under 0.875%? Because they don't see it as Microsoft taking money from them and rewarding shareholders--they see it as finding a safe place to park some cash.
    23 Sep 2010, 01:11 AM Reply Like
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