Friday, August 19, 2011
Thursday, August 18, 2011
Wednesday, August 17, 2011
Tuesday, August 16, 2011
Monday, August 15, 2011
Sunday, August 14, 2011
Saturday, August 13, 2011
Friday, August 12, 2011
Apple Earnings; Cisco's Cuts
NEW YORK (TheStreet) -- Apple(AAPL) shares rose 1.3% to $378.80 in pre-market trading on Tuesday, as the company prepares to issue its third quarter earnings after the ball. Analysts are expecting a good quarter from the consumer tech giant, which is expected to post earnings of $5.83 a share, up from $3.51 during the same period last year.
Cisco(CSCO) shares rose 0.4% in pre-market trading on Tuesday after the network equipment maker said it was cutting 11,500 employees, or 16% of its workforce through job cuts, buyouts and outsourcing.
The cuts are part of a $1 billion cost reduction effort to help Cisco realign its business, deal with a drop in tech spending and face market share losses that have battered the company's stock this past year.
IBM(IBM) shares popped 2% in pre-market trading on Tuesday after the software giant posting strong quarterly earnings.
Big Blue brought in revenue of $26.7 billion, compared to $23.7 billion in the same period last year; the numbers were above analysts' estimate of $25.35 billion. Excluding items, IBM earned $3.09 cents a share, up from $2.62 cents a share in the prior year's quarter and up from analysts' forecast of $3.03 a share.
Shares of Baidu(BIDU) jumped 1.4% to $150.25 in pre-market trading on Tuesday after the Chinese search engine reached a deal with major record labels to provide licensed music for users to stream or download for free.
The deal ends years of legal struggles between music labels like Sony(SNE), Universal Music Group and Warner Music Group and Baidu over the use of the search engine's MP3 service which has been accused of promoting piracy.
Online privacy start-up Reputation.com raised $41 million in venture funding, the company said on Monday. The round brings the company's total funding to more than $65 million. Reputation.com helps consumers manage their privacy and reputation online.
--Written by Olivia Oran in New York.
>To follow the writer on Twitter, go to http://twitter.com/Ozoran.
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Thursday, August 11, 2011
No Slowdown at Apple Expected in Fiscal Q3
Story corrected to reflect Apple will report fiscal third-quarter earnings, not second-quarter results.
BOSTON (TheStreet Ratings) -- Apple(AAPL) is scheduled to report fiscal third-quarter earnings after the market close on July 19, and the company's report is expected to show its red-hot growth in sales and earnings continued in the quarter.
Analysts are expecting the computer and personal device maker to report earnings per share of $5.73, up from $3.51 reported a year earlier. Revenue is estimated to increase 58% to $24.8 billion from $15.7 billion based on expectations for improving iPad and iPhone sales.
The following is taken from a first-quarter report published by TheStreet Ratings, an independent-research unit of TheStreet that uses a quantitative model to evaluate stocks.
Apple reported significant earnings per share improvement in the first quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, Apple increased its bottom line by earning $15.15 versus $9.07 in the prior year. This year, the market expects an improvement in earnings ($24.92 versus $15.15).
We rate Apple a "buy." This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. Our model maintains a price target of $470 on shares of Apple, indicating the potential for 31% upside from current levels.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and impressive record of earnings per share growth. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Computers & Peripherals industry and the overall market, Apple's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
Apple Shakes Off Growth Fears, But What's Next?
BOSTON (TheStreet) -- Apple(AAPL) shares notched yet another all-time high on Monday even as the Dow Jones Industrial Average tumbled nearly 100 points, an impressive comeback for a stock that suffered its worst first-half performance in three years.
Apple, which is due to report quarterly results after the closing bell today, lost some of its shine earlier this year on worries the company could sustain its high growth rate. Apple didn't hold to its schedule of launching a new iPhone iteration in June. Competition from Google(GOOG) and other handset and tablet makers intensified. Perhaps most importantly, Apple CEO Steve Jobs took yet another leave of absence for health reasons. 
By June 20, Apple shares hit a low of $310.50, 3.7% below the stock's closing price at the end of 2010. Through the first six months of the year, Apple shares had their worst first-half performance since 2008, when the worst recession since the Great Depression bruised equities. Since that trough, Apple's stock has roared back, breaking through $374 to a new record high. Apple added $8 billion to its market cap during Monday's session alone.
"The 'Steve Jobs' factor was what hurt the stock in the first six months of the year," says Bryan Keane, co-portfolio manager of the Alpine Global Consumer Growth Fund(AWCGX). "But there's also a lot of talk now about what's next. At this point, it's not completely clear in terms of a product perspective. Investors are in limbo in terms of future growth rates for Apple going forward."
Keane, who helped launch the Alpine Global Consumer Growth Fund earlier this year and is a holder of Apple, says it's unclear what the next major product offering will be from Apple. The iPad 2 launched in March to much fanfare and the next iteration of the wildly popular iPhone is expected to debut in September. While Mac computer sales have been robust, Keane questions what Apple could have up its sleeve next.
"The iCloud was anticipated and it's up in the air if it will have the same impact the iPhone and iPad had," Keane says, referring to the cloud computing service Apple unveiled last month. "They're secretive about what their new products are, so it's difficult to determine the future growth rate." Apple boasted a sales growth rate of 52% in fiscal 2010, with net income jumping 70%.
Wednesday, August 10, 2011
Asia Today: Pork's Surge; China Property Limits
![[smbullriding]](/PF-AA765smbullC20110705163627.jpg)
Rocking with the Stones, rescuing hostages, riding bulls: Getting your ya-yas out, boomer-style.
Sorry, I could not read the content fromt this page.11 Stocks to Watch: Bank of America, Goldman
NEW YORK (TheStreet) -- Bank of America (BAC) reported a second-quarter loss of 90 cents a share, in line with analysts' expectations. During the same time last year, Bank of America reported profit of 27 cents a share.
Shares were down 0.8% to $9.64 in premarket trading Tuesday.
Goldman Sachs(GS) posted second-quarter profit $1.85 a share, below the consensus target of $2.27 a share but above last year's earnings of 78 cents a share.
Shares of the financial services firm were tumbling 3% to $125.50.
Tech bellwether IBM(IBM) earned $3.09 a share in the second quarter, up from $2.62 cents a share in the prior year's quarter, beating analysts' forecasts of $3.03 a share.
IBM shares were gaining 1.7% to $178.30.
Bank of New York Mellon(BK) reported second-quarter earnings of 59 cents a share, beatings analysts' estimates of 56 cents a share. The company reported earnings of 54 cents a share in the year-ago period.
Shares were advancing 1.1% to $24.90.
iPad maker Apple(AAPL) is expected to post third-quarter profit of $5.85 a share Tuesday after the markets close. The company reported $3.51 a share last year.
Shares were adding 1.1% to $377.94.
UnitedHealth(UNH) said Tuesday it earned $1.16 a share in the second quarter versus the average analyst estimate of 94 cents a share. UnitedHealth earned 99 cents a share a year earlier.
Revenue in the quarter rose to $25.23 billion vs. the consensus estimate of $25.24 billion and $23.26 billion a year earlier.
The managed care company raised its outlook for 2011.
Shares were down 0.9% to $51.50.
Wells Fargo(WFC) reported second-quarter profit of 70 cents a share Tuesday morning vs. the consensus estimate of 68 cents a share and last year's profit of 55 cents a share.
Shares were up 0.8% to $27.10.
Soda giant Coca-Cola(KO) reported second-quarter earnings of $1.17 versus the average analyst estimate of $1.16. Earnings per share were $1.06 a year ago.
Shares were rising 0.5% to $67.48.
Networking giant Cisco(CSCO) said it will cut 11,500 people, or 16% of its work force, through job cuts, buyouts and a manufacturing outsourcing deal with Foxconn.
Shares were up 0.5% at $15.51.
Consumer products giant Johnson & Johnson(JNJ) reported second-quarter profit of $1.28 a share Tuesday. The average analyst estimate was $1.24 a share. The company reported earnings of $1.21 a year ago.
J&J maintains its full-year earnings guidance at $4.90 to $5 a share.
Shares were up 0.2% to $67.20.
Internet company Yahoo!(YHOO) is expected to report second-quarter profit of 18 cents a share after the markets close Tuesday. During the same time last year, the company reported profit of 15 cents a share.
-- Written by Andrea Tse in New York.
>To contact the writer of this article, click here: Andrea Tse.
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Tuesday, August 9, 2011
Housing Starts, IBM, Coke Boost Stocks
NEW YORK (TheStreet) -- Solid earnings from IBM(IBM) and Coca-Cola(KO), and progress on U.S. debt talks sent stocks soaring Tuesday.
The Dow Jones Industrial Average accelerated by more than 100 points after President Obama signaled his support for a deal that would cut the deficit by $3.7 trillion. The ambitious plan has been gaining support from Democrats and Republicans, and includes changes to Medicare and in the tax code but not Social Security. The Dow was up 211 points, or 1.7%, at 12,597.
The S&P 500 also drifted up on the news, last gaining 22 points, or 1.7%, at 1327. The Nasdaq was ahead by 62 points, or 2.2%, at 2827.
"This is the first sign that [lawmakers] are coming to an agreement on the debt ceiling," said Jim Paulsen, chief investment strategist at Wells Capital Management. "There was a big discount in the market for fear and a potential Armageddon... if it turns out better, there's room to move up."
Receding fears of a U.S. debt default triggered a gold selloff. August futures were dropping $13.40 to $1,589 an ounce, well off from Monday's record high above $1,600. August crude oil contract gained $1.76 to trade at $97.69 a barrel.
The tech sector gave stocks a lift early in the session, with IBM(IBM) shares up 4.3% at the top of the Dow. The company reported strong sales growthacross its hardware, software and services businesses late Monday, and also lifted its full-year profit outlook to adjusted earnings of at least $13.25 a share, up from its prior guidance for earnings of $13.15 a share.
Microsoft(MSFT) and Intel(INTC) were also among the top Dow gainers.
Apple(AAPL) is expected to report third-quarter earnings of $5.85 a share after the closing bell. Shares were trading 0.7% higher at $376.57. Coca-Cola(KO) was up popping by 3.7% to $69.62 after the company beat expectations by 1 cent, with adjusted earnings of $1.17 a share and said global volume grew 6% in the second quarter.
On the weaker end of the Dow were Bank of America(BAC) and Johnson & Johnson(JNJ), which reported earnings on Tuesday, alongside 3M(MMM), AT&T(T) and Verizon(VZ).
Bank of America met analysts' estimates with a loss of 90 cents a share. The loss was largely a result of the bank's recent agreement to settle claims with investors who lost money on Countrywide-issued mortgage-backed securities before the downfall of the housing market. Excluding mortgages, BofA had net income of $3.7 billion, or 33 cents a share. The stock was down 1.2% at $9.60.
Although Johnson & Johnson beat consensus estimates by 4 cents with an adjusted second-quarter profit of $1.28 a share, the company reported a 19.4% decline in quarterly profit as a result of higher litigation and recall costs. The stock was declining 0.7% to $66.61.
Monday, August 8, 2011
Bank of America Takes Another Mortgage Hit
NEW YORK (TheStreet) -- The bad news for Bank of America(BAC) is that mortgages cost the bank $20 billion in the second quarter.
The worse news is that management continues to struggle over the ultimate cost of its mortgage operations.
The mortgage-related costs were announced June 29, including a proposed $8.5 billion settlement with 22 institutions that bought mortgage backed securities (MBS) from Bank of America backed by mortgages that were fraudulent or otherwise didn't meet the underwriting criteria promised to the investors who bought the MBS. 
Bank of America CEO Brian Moynihan
With the agreement and other mortgage-related actions taken in the second quarter of 2011, the company believes it has recorded reserves in its financial statements for a substantial portion of its representations and warranties exposure as measured by original principal balance.
Bank of America recorded a loss of 90 cents for the second quarter, equal to Thomson Reuters consensus analyst estimates.
Even following an $8.5 billion settlement with a group of 22 institutions over mortgage backed securities and $12 billion in other mortgage-related charges, there appears to be a fair amount of uncertainty among investors and analysts about the extent of the bank's ongoing exposure.
What appears certain is that the bank is well behind rivals including Citigroup(C), Wells Fargo(WFC)and JPMorgan Chase(JPM) when it comes to reserving against higher capital requirements for globally systemically important financial institutions under international regulatory guidelines known as Basel III.
Still, Bank of America has said it expects to generate enough capital out of earnings to be able to meet the requirements, which, although they don't go into effect for several years, have in recent weeks been a keen area of focus for investors and analysts.
Bank of America CFO Bruce Thompson told analysts in a June 29 conference call the bank has set aside "the lion's share of what we can," for disputes with "monoline" bond insurers, such as Assured Guarantee Ltd.(AGO) and MBIA(MBI) as well as "private label" investors in its mortgage backed securities (MBS)--those other than government sponsored entities (GSEs) Fannie Mae (FNMA.OB)and Freddie Mac(FMCC.OB).
Bank of America also said the "range of possible loss" for non-GSE MBS claims is $5 billion.
While Bank of America has announced settlements with the GSEs, they are limited in scope. Also to be determined is the much-anticipated deal with a host of federal and state regulators over mortgage servicing. Some estimates have predicted a settlement of mortgage could cost Bank of America and other servicers as much as $25 billion, though many banking industry watchers, such as Sandler O'Neill analyst Jeff Harte, have said in the past that banks would be very unlikely to agree to such a large number.
Sunday, August 7, 2011
How Apple Products Will Sell
CUPERTINO, Calif. (TheStreet) -- As Apple(AAPL) reports fiscal third-quarter results Tuesday afternoon, will investors see some of the magic that hit Google(GOOG) in its second-quarter report last week?
"All in all, I would expect a good quarter, not a Google-type of quarter, but a good quarter," said Michael Yoshikami, CEO and founder YCMNET Advisors, which holds a small position in Apple. "I am expecting good numbers -- I think that they will surprise to the upside with iPad numbers."
Analysts predict that Apple will enjoy a summer of major iPad and iPhone sales, despite the lack of a new iPhone announcement at its Worldwide Developers' Conference (WWDC) last month. An upgraded version of the device is expected to make its debut in September.
YCMNET's Yoshikami is not getting too carried away with all the iPhone chatter. "I won't be surprised to see the iPhone numbers be fair, but not great," he told TheStreet. "That would be because Verizon(VZ) has had a very successful rollout of their LG LTE devices," said Yoshikami, referring to the slew of Google Android phones hitting the market this summer.
The Apple investor expects to see Mac adoption rates continue to rise, as well as hear more details about its recent patent win against HTC.
"I will be listening for what they are going to do about Apple in terms of litigation, and also their TV product launch," he said, referring to rumors that the company is planning to enter the high-definition TV market, possibly later this year.
Apple, of course, is notoriously tight-lipped about future product launches, and analysts seem to think that the firm is likely to focus attention on the roll-out of its new iCloud service, which was unveiled at WWDC last month.
Overall, analysts surveyed by Thomson Reuters are looking for Apple to report third-quarter revenue of $24.92 billion and earnings of $5.80 a share.
--Written by James Rogers in New York.
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Apple vs. Google: A 5-Round Scorecard
NEW YORK (TheStreet) -- Summer has been good for Apple(AAPL) shares, but it's been even better for Google's(GOOG).
The fierce mobile tech rivals have enjoyed a resurgent popularity among investors over the past month, with Apple up 14% and Google -- thanks to a strong second-quarter performance -- up 24%.
Investors will watch to see if Apple can top Google's results when it releases its fiscal third-quarter report after the bell Tuesday. (TheStreet will live-blog Apple's earnings day, starting at 3:45 ET.) 
But beyond the financial metrics, Apple and Google continue to duke it out on the innovation front. Apple and Google are undeniably the sector leaders, but they also represent a large swath of the tech market being shaped by sweeping trends in technology.
Developing areas like social networking, mobile, devices, cloud services and retail expansion are just some of the forces fueling investor enthusiasm.
Here is an updated look at how well some analysts and industry experts say Apple and Google measure up in five of the key categories. The half-dozen analysts TheStreet spoke with were asked to rank the companies' performance on a 1-5 scale.
Social Web
Three months ago, this category had both Google and Apple tied in a dead heat for Social Networking Failure. But in just the past two weeks, Google's new Facebook imitation Google+ has managed to catch on with 10 million-plus users. 
For its part, Apple has Ping, a community-building attempt that allows users to share their music recommendations and comments with others in iTunes. The uptake has been disappointing. And FaceTime, a video conferencing service linking Apple devices only, has had limited success.
Social is a much bigger threat to Google's search ad-driven business and therefore a much larger priority for the `Net giant. Google+ is a promising medium for Google to plant ads that are targeted to people aligned around common interests. It's still early, but Google+ could help Google forestall Facebook's advertising challenge.
"Apple just hasn't gotten into this area yet and relies mostly on third-party products," said Gartner analyst Ken Dulaney. "Google participates, but its early days and they have had some failures already."
Score: Apple 2, Google 4
Saturday, August 6, 2011
Extreme couponing: Stockpiling toothpaste, meat
Michelle and Darren Gutwein with kids Alex and Zoey, and the $750 worth of groceries they bought for $122.
(Money Magazine) -- Malinda Hodges, a 41-year-old business technology consultant for Bank of America, is one of many coupon enthusiasts who never dreamed she would find herself stockpiling men's deodorant under the bathroom sink. But in 2008, when her husband, Dwayne, was laid off from his job in the mortgage industry, she began using coupons to help support their three children, now ages 3 to 12, and her mom, who lives with them in Fort Mills, S.C. Dwayne eventually found work, but Malinda never gave up her bargain-hunting ways.
Now couponing seems like a common sense way to live. She buys six Sunday newspapers for the inserts each week, then matches the coupons with weekly sales at nearby retailers, some of which double or even triple the coupon value.
It can be a lot of work -- she estimates she spends five hours a week couponing -- but Hodges has cut her $300 weekly grocery bill in half. "I plan meals around what's on sale and always try to save more than I spend," she says, adding that she never pays for toothpaste since there's always a deal to be found.
"We don't stockpile like the people on the TV show -- we don't have that much space," though she does admit to stashing away that deodorant, plus 23 tubes of toothpaste.
Like many serious couponers, Hodges loves scoring deals in large quantities so that she can give the extras to family, friends, and fellow church members. Never mind that buying 18 containers of deodorant at a deep discount might have cost more than paying full retail price for one. "It's a way to be a blessing to other people," says Hodges.
Couponing is a popular example of what economists call "price discrimination." Like airline discounts that require a Saturday night stay, coupons are a way of collecting more from the people willing to pay more and less from people who will jump through hoops for a bargain.
If you don't mind devoting hours to clipping and learning coupon policies, you get a discount; if you consider that a hassle, you pay full price. In times of economic uncertainty, more people are willing to play the cat-and-mouse game.
"People who coupon have a definition of themselves as not being suckers," says Ariely. "They think, 'I'm more clever because I'm outsmarting the system.'"
The Internet has made couponing simpler than ever by automatically matching coupons with store sales -- once a laborious job -- and allowing consumers to find coupons easily. That, of course, has prompted manufacturers and stores to create more elaborate rules to keep the process difficult. Otherwise, they might as well just drop the prices for everybody.
The ideal consumer, from the brand's point of view, is a bumbling couponer who tries a new breakfast cereal with a 50-cent-off deal, then becomes hooked and pays the full price forever after.
There are no rigorous cost-benefit studies about coupon behavior, but an admittedly unscientific exercise by Coupons.com concludes that devoting 40 minutes a week can save you $1,400 a year on groceries, and nearly $6,000 if you factor in store sales.
You don't have to become an obsessive-compulsive couponer -- hauling binders through the store or driving miles out of your way for a free case of soda -- to save. Mary Henderson, a 31-year-old marketing specialist for Accenture who lives in Lombard, Ill., says she spends only about two hours a week couponing but saves $100 to $150, allowing her and her husband, Greg, to maintain their ambitious retirement and college savings regimen while she cuts back her work hours to spend more time with their 1-year-old, Evelyn. "We're still planning to retire at 55," she says.
It can be a challenge, however, for even serious couponers to find all the food they truly want to eat. Discounts for processed food like ramen noodles and crackers are easy to come by, but not so easy to find for fresh produce. Meat and dairy products can be tricky too, though dedicated couponers usually have extra freezers in the basement to stock up when those items go on sale. And you can forget about brand loyalty.
Catherine Boyle, 48, a Christian speaker and author in Richmond, is a devoted couponer when she shops for her husband, Barney, 50, a bank vice president, and their two children, ages 14 and 11. The kids have accepted having to give up their favorite JIF or Peter Pan peanut butter in favor of Skippy, which is often on sale."But I'd be drawn and quartered if I brought home generic peanut butter," Boyle says. "You can only go so far."
The most popular coupon items are groceries and personal-care products, but once this addictive habit sets in, couponers find it nearly impossible to pay full price for anything. They search Google for discount codes, learn of sales through Twitter and Facebook, and sign up for restaurant mailing lists. Social-networking coupon sites even offer free vacations if you persuade others to buy the same package (though unless you split the discount with your pals, it could be awkward when they realize your trip was free).
New convert Michelle Gutwein, a 30-year-old IT professional in the Twin Cities area, found it difficult to resist the undertow once she started. When she first watched "Extreme Couponing," she thought couponers were crazy hoarders. "Flash-forward about six months, and now I'm one of them!" she says.
Gutwein has stockpiled goods in every available nook and cranny in the house she shares with her husband, Darren, and two children, 3 and 5. She buys meat in bulk and chops it up into one-pound bags to use later. The work has paid off. She estimates she saves $700 a month and is launching a blog to share tips.
But she began to think she had a problem when she found herself spending eight hours one day searching online and reading blogs. "I thought I had to go to every single store to stockpile goods," she says. "I was running myself ragged because I thought you had to do it the way they do on TV."
This is a common phenomenon in coupondom. Blogger Melanie Feehan calls rabid newbies "baby vampires" who clear the shelves of sale items, annoy other customers waiting in line, and drive store managers crazy. Fortunately, Gutwein says, she finally got hold of herself. "I realized with a busy family, you don't need to go to seven stores a week," she says. "Just pick and choose what you need."
E-mail The Help Desk your household budget questions.
At best, enthusiastic couponers are highly organized, efficient, smart, and mathematically-inclined Type A personalities. At worst, some appear to suffer from impulse-control problems such as obsessive-compulsive disorder, according to Bonny Forrest, a clinical neuropsychologist in San Diego who trained at Yale's highly regarded OCD unit -- though she hastens to add that couponers usually can't be considered hoarders. The clinical definition of hoarding requires clutter, and couponers tend to be excessively neat.
"It seems to be an addiction, like compulsive shopping," says Forrest. "Like the women who buy all those clothes they don't need because of the high it gives them, that feeling of self-esteem." The questions to ask yourself are: How much time does it take, does it interfere with your relationships, and does it stem from a fear of losing your job? "If so," says Forrest, "a more rational approach would be to spend more time at your job."
Matt Sharp, executive producer of Extreme Couponing, sees couponing not as a pathology but as an emerging subculture with its own rituals and mores. "It's a way of life," he says. "Yes, it's about saving money, but not in the regular way of being on a budget, giving up your Starbucks, and neglecting yourself," he says. "For couponers saving is fun, almost a sport."
For Lauren Liggett, a 22-year old college student who discovered the coupon-clipping, couponing has given her a productive and exciting way to spend her time, deepened her social connections, and let her help others who are less fortunate. "Before I started couponing, I wasted my time on the computer or watching TV," she says. "Now I'm spending time with friends, getting them into it, and going to stores together to see if we can find some good deals."
Like computer nerds who were scorned until the world realized how valuable their skills made them, serious couponers are starting to get more respect. When Liggett started couponing in January, her aunt told her she was crazy. But a few weeks ago she called from Connecticut. "You know that couponing thing you do?" her aunt said, a bit sheepishly. "Is there any way you can teach me?" 
News Hub: Stocks Tumble on Europe Debt Worries
Rocking with the Stones, rescuing hostages, riding bulls: Getting your ya-yas out, boomer-style.
Sorry, I could not read the content fromt this page.Friday, August 5, 2011
News Hub: Stocks Fall on Debt Concerns
Rocking with the Stones, rescuing hostages, riding bulls: Getting your ya-yas out, boomer-style.
Sorry, I could not read the content fromt this page.Thursday, August 4, 2011
News Hub: Stocks End Higher on Strong Earnings
Rocking with the Stones, rescuing hostages, riding bulls: Getting your ya-yas out, boomer-style.
Sorry, I could not read the content fromt this page.DJIA Targets 200-Point Day
NEW YORK—U.S. stocks traded near session highs, lifted by International Business Machines (IBM)' strong earnings and President Barack Obama's praise for $3.7 trillion deficit-reduction plan.
About an hour before the closer, the Dow Jones Industrial Average was up 208 points, or 1.7%, to 12593. The blue-chip index rose as much as 214 points in afternoon trading on Mr. Obama's comments.
IBM surged 5.2%, touching a fresh intraday record, and has accounted for about 66 points of the Dow's gains.
5:23 Goldman Sachs shares hit their lowest level in a year, and Bank of America swings to a loss, Deal Journal's Shira Ovide reports. (Photo: Getty Images.)The president said the proposal, which would modify entitlement programs like Social Security and rework the tax code, represents a "very significant step" forward in deficit talks.
"There's no question that the political game of chicken over the deficit is weighing on investor minds," said Ted Weisberg, president of Seaport Securities. "Obama must've given the impression that this will one way or the other get resolved."
Investors were already in a positive mood thanks to encouraging earnings and a hint of housing optimism.
IBM shares surged a day after reporting second-quarter results that exceeded forecasts. The technology company posted strength in its hardware, software and services businesses, prompting a boost to its full-year earnings outlook. That lifted tech stocks and pushed the tech-heavy Nasdaq Composite up 58 points, or 2.1%, to 2823. The Standard & Poor's 500-stock index was up 21 points, or 1.6%, to 1327.
Technology was the best performing sector in the S&P 500, up 2.6% on the day. While tech stocks have been the biggest gainers so far this month, they have lagged the broader market over 2011. Japan's earthquake and tsunami in March have caused supply hitches, which prompted worries about global economic growth and dragged down tech stocks down more than other sectors in recent months.
The S&P 500's tech sector is up 5.2% this year, well behind energy's 14% rise and health care's 12% gain.
Despite renewed optimism prompted by IBM's strong results and how the rest of the tech sector may perform during earnings season, traders cautioned into getting overly bullish about the sector's prospects.
"One day doesn't make a bull market," Seaport's Mr. Weisberg said.
The broad market rally comes after stocks fell on Monday to the lowest close this month. For the moment, earnings and housing data are acting as a welcome distraction to concerns over European governments' finances and U.S. debt-ceiling negotiations that have roiled markets for weeks.
"Earnings have trumped everything else," said David Klaskin, chief investment officer at Oak Ridge Investments in Chicago. "There's no major negative news offsetting the fact that earnings were pretty good, which is why we're rallying."
Apple (AAPL) shares edged up 0.7% after hitting a new intraday record earlier in the day. The technology giant is expected to report earnings for its June quarter after the closing bell.
On the economic front, U.S. home construction rose in June to the highest level in five months, according to the Commerce Department. Still, construction remains well below what economists consider as healthy levels.
Home-builder stocks are getting a boost following the housing data. Lennar (LEN) rose 6.3%, D.R. Horton (DHI) jumped 5.9% and Toll Brothers (TOL) gained 3.8%.
Elswhere, Wells Fargo (wfc)'s second-quarter earnings rose 29% amid falling loan losses and strong demand for business loans. Shares climbed 4.3%.
Dow component Coca-Cola (KO)'s second-quarter earnings rose 18%, boosted by Coke's recent bottler acquisition and strong volume growth overseas. The stock rose 3.3%.
Bank of America (BAC) posted its third loss in four quarters, as mortgage-related issues continued to overshadow any improvements in other operations. Shares dropped 1.3%. The stock is down about 12% this month and closed Monday in single-digit territory for the first time since May 2009.
Goldman Sachs Group (GS) shed 1.3%. Its second-quarter profit of $1.05 billion was significantly lower than expectations, as difficult markets led the Wall Street bank to reduce risk taking to the lowest levels in five years.
Harley-Davidson (HOG)'s earnings more than doubled in the second quarter as retail sales of its new motorcycles rose in the U.S. for the first time since the fourth quarter of 2006. Shares rose 9.9%.
Write to Steven Russolillo at steven.russolillo@dowjones.com
Wednesday, August 3, 2011
Markets Hub: Stocks Tumble on Europe Jitters
Rocking with the Stones, rescuing hostages, riding bulls: Getting your ya-yas out, boomer-style.
Sorry, I could not read the content fromt this page.Tuesday, August 2, 2011
Casino magnate Steve Wynn trashes Obama
Steve Wynn had some harsh words for the Obama administration.
NEW YORK (CNNMoney) -- Billionaire CEO Steve Wynn used his company's earnings call to trash President Obama and his economic policies Monday -- calling the administration a "wet blanket" on the business community.
"I'm saying it bluntly, that this administration is the greatest wet blanket to business, and progress and job creation in my lifetime," Wynn said in response to a question about Las Vegas real estate.
Wynn then expanded on that idea in a 400-word soliloquy, before fielding a follow-up question on a planned real estate project in Macau.
"The guy [Obama] keeps making speeches about redistribution, and maybe we ought to do something to businesses that don't invest or hold too much money," Wynn said. "We haven't heard that kind of talk except from pure socialists."
Wynn described himself as a Democratic businessman, and supporter of Harry Reid, before adding that, "I support Democrats and Republicans."
Wynn's company, the resort and casino operator Wynn Resorts (WYNN), actually did quite well in the second quarter, earning $122 million or 97 cents per share.
But Wynn said he could be doing even more if not Obama. His company alone could add 10,000 jobs in Las Vegas, but he is "afraid to do anything in the current political environment in the United States."
"The business community in this country is frightened to death of the weird political philosophy of the president of the United States," Wynn said.
Some business leaders have cited an uncertain regulatory atmosphere as a reason for the slow pace of hiring. But there are plenty of examples of individual companies -- like Google -- that are hiring at a breakneck pace.
And while hiring is slow, mergers and acquisitions are heating up, and investors are being rewarded with stock buybacks and dividend hikes.
Wynn did not focus exclusively on the administration, although his harshest criticisms were reserved for the president. He also blasted the debate over the debt ceiling.
"Everybody is so political, so focused on holding their job for the next year that the discussion in Washington is nauseating," Wynn said.
The Obama administration has not always been on the friendliest of terms with the business community, but the relationship has thawed this year.
The president acknowledged the tensions in February, telling members of Washington's most powerful business lobby that "we've had some pretty strong disagreements."
The White House has made concrete efforts to mend the relationship, including the hiring of chief of staff Bill Daley, who came over from JPMorgan.
But things won't improve, Wynn said, until Obama is out of the White House.
"Until he's gone, everybody's going to be sitting on their thumbs," Wynn said.
News Hub: Bernanke Takes Wind Out of Stocks
Rocking with the Stones, rescuing hostages, riding bulls: Getting your ya-yas out, boomer-style.
Sorry, I could not read the content fromt this page.Monday, August 1, 2011
News Hub: Bernanke Says Fed Ready to Act if Needed
Rocking with the Stones, rescuing hostages, riding bulls: Getting your ya-yas out, boomer-style.
Sorry, I could not read the content fromt this page.News Hub: Fed Minutes Fail to Stop Stock Slide
Rocking with the Stones, rescuing hostages, riding bulls: Getting your ya-yas out, boomer-style.
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