FeedPosted Jul 22nd 2010 12:10PM by Melly Alazraki (RSS feed)
Filed under: Deals, General Motors (GM), Market Matters, AT and T (T), 3M Corporation (MMM), Caterpillar (CAT), United Parcel'B' (UPS), Economic Data

U.S. stocks surged Thursday morning following yet another strong batch of
earnings, and despite several weak economic indicators. The
Dow Jones industrial average rose about 200 points, or 2%, while the Nasdaq composite jumped 2.3% and the S&P 500 soared 2.1% by noon trading. And stocks were even higher earlier.
Earnings results continued to impress Wall Street. This morning, such heavy weights as Caterpillar (
CAT), 3M (
MMM), UPS (
UPS) and AT&T (
T) all topped earnings estimates and raised their outlooks. Shares of all four were generally higher in morning trade. Meanwhile, General Motors said it is
acquiring auto financier AmeriCredit (
ACF) for $3.5 billion.
Continue reading Stocks Surge on Earnings, Outlooks, Deals
Posted Jul 16th 2010 2:00PM by Connie Madon (RSS feed)
Filed under: Forecasts, Consumer Experience, Market Matters, Economic Data
After ticking up for nearly two-and-a-half years, consumer confidence took a dramatic plunge, falling to an eleventh month low. The preliminary July reading came in at 66.5, down sharply for June's reading of 76. The median forecast had been for a reading of 74.5 among economists polled by Reuters.
The key factor, of course, is jobs and job prospects. Richard Curtin, director of the survey, said: "Income and job prospects were extraordinarily weak and those bleak prospects have made consumers much more cautious spenders." He further stated: "Moreover, consumers reported renewed weakness in the economy and were more likely to anticipate additional problems in the year ahead."
Continue reading Consumer Confidence Drops to an 11-Month Low
Posted Jul 15th 2010 6:00PM by Sheldon Liber (RSS feed)
Filed under: Earnings Reports, Good news, General Electric (GE), Market Matters, Citigroup Inc. (C), JPMorgan Chase (JPM), Bank of America (BAC)

Tomorrow is filled with the potential to boost the market upward, or trip it up going into the weekend. Three financial giants are reporting: Bank of America Corporation (
BAC), Citigroup, Inc. (
C) and General Electric Company (
GE). This could set the stage for a continued market rally next week as earnings season has been generally positive and a trend is developing.
Expectations are high, following solid quarters reported by State Street (
STT) last week
that surprised many, and JPMorgan Chase & Company (
JPM), who followed up with a
big beat this morning.
Sentiment seems to be on the bullish side as tomorrow is also options expiration time and those betting on the banks should be pleased to book some gains.
Continue reading Fearless Friday: BAC, C, and GE Report Earnings
Posted Jul 14th 2010 11:40AM by Connie Madon (RSS feed)
Filed under: Market Matters, Economic Data, Financial Crisis

The state of Illinois is in a mess, to put it mildly.
It has $4.7 billion in unpaid bills, up from $2.8 billion last year. The state has to pay $4 billion to its pension fund, which is under funded at 50% -- the highest ratio of any U.S. state. It now plans a $900 million bond issue to test the waters, the
Financial Times reports.
The municipal bond market (munis) is huge at some $2,800 billion. This market has come under international scrutiny because of the ever increasing debt piling up by the states.
To encourage investors to buy the bonds, they are being offered under the Build America bonds (Babs). These bonds allow for a federal subsidy for debt sold for infrastructure projects.This means that the bonds have wide appeal. Underwriter Citigroup plans to market the bonds in Europe, Asia and the U.S.
Continue reading Struggling Illinois Plans $900 Million Bond Issue
Posted Jul 12th 2010 5:00PM by Connie Madon (RSS feed)
Filed under: Bad News, Management, Market Matters, Economic Data, Small Business, Federal Reserve, Financial Crisis
The lifeblood of business is credit. Unfortunately, the credit available has been shrinking instead of growing. As of June 30, U.S. commercial and industrial loans held by banks have declined to $1.24 trillion from $1.6 trillion in 2008
Ben Bernanke, Fed chairman cites that credit creation as the key to economic growth. He has prodded banks consistently to lend more. Banks, instead of loosing up. are making it harder for small businesses to get credit. Even those with a good credit rating are finding it hard to get loans. Bernanke stated: "Making credit accessible to sound small businesses is crucial to our economic recovery and so should be front and center among our current policy challenges." Again speaking to lenders he stated: "Our message is clear. Consistent with maintaining appropriately prudent standards, lenders should do all they can to meet the needs of creditworthy borrowers."
Continue reading Bernanke Cites a Persistent Problem: Small Businesses Can't Get Loans
Posted Jul 12th 2010 2:30PM by Sheldon Liber (RSS feed)
Filed under: International Markets, Competitive Strategy, Berkshire Hathaway (BRK.A), Market Matters, Amer Intl Group (AIG), Serious Money, Stocks to Buy, MetLife Inc. (MET)

To continue the saga of what might be on Warren Buffett's foreign wish list, consider the current holdings of Berkshire Hathaway (
BRK.A/
BRK.B), the largest of which is insurance. The insurance industry has been hard hit by the economy, but it also has the greatest potential to rebound of any industry. Insurance companies have huge cash flow and a large float (mandated by government regulation) that can be used for investments. This has been a major contributing factor in Buffett's success.
Unlike the construction, automobile or financial sectors that have been met with an economic tidal wave that destroyed demand, there is no lack of demand in the insurance industry. The insurance companies have been hurt by the shrinking of their investment portfolios more than loss of demand or even claims, accepting companies that wrote swaps, like American International Group (
AIG).
When next
"my pal Warren" invests abroad he may not have to go very far.
Continue reading Serious Money: Buffett Going Global -- Part 5
Posted Jul 10th 2010 1:40PM by Connie Madon (RSS feed)
Filed under: Market Matters, Mutual Funds, Recession
Despite this week's equity rally, investors are nervous about the future. They still fear a double dip. For that reason they are running to pour funds into money markets.
EPFR Global, which tracks the flows of money market funds, reported that money market funds had their greatest inflows in 18 months, some $33.5 billion.
Some of the world's biggest fund managers are now holding up to 40% cash in their portfolios. The main driver behind the flow of funds into money markets is fear, fear of another market slide. Chris Tuffy of Credit Suisse said: "This is about capital preservation."
Continue reading Investors Pour Billions into Money Market Funds
Posted Jul 7th 2010 1:30PM by Connie Madon (RSS feed)
Filed under: International Markets, China, Market Matters, Commodities
The story is about gold. Gold in London traded at $1,186 per ounce, a six-week low. Just a few weeks ago, gold made a new high at $1,265.30 per ounce.
So far this year, gold has risen 8.3%. Profit taking came into the market as the market made new highs. Investors sought to protect themselves from the turmoil in Europe, and there was concern that the global recovery would soften. Now the pressure from Europe has subsided somewhat, the euro has rallied against the dollar, and stocks are falling.
Continue reading Gold Hits a Six-Week Low in London
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