Non-farm payrolls came in higher than analysts' forecasts and the unemployment rate fell to 8.8%. That good news sent the Dow Jones Industrial Average to a new 2011 high. At midday the Dow was up 78 points to 12,397 -- as reported by the Wall Street Journal.

Except for a brief sell-off to the 11,500 level, the market has moved quickly to regain lost ground and is now at new highs. Last week the USDA's crop report was bullish for grains. It's not surprising that Caterpillar (CAT) led the charge, up 1.7%. But there are always some losers. Office Depot (ODP) fell 11% after reporting a fourth quarter loss and Krispy Kreme Doughnuts (KKD), which also had a fourth quarter loss, fell 17%.

Continue reading Dow Hits New 2011 High: What's Next?

Dow Hits New 2011 High: What's Next? originally appeared on BloggingStocks on Fri, 01 Apr 2011 17:20:00 EST. Please see our terms for use of feeds.

Continue reading Stocks with Ties to Independence Day - Part 1: US vs. UK

Stocks with Ties to Independence Day - Part 1: US vs. UK originally appeared on BloggingStocks on Mon, 05 Jul 2010 14:30:00 EST. Please see our terms for use of feeds.

So, how is that Summer of Recovery working out? Following Tuesday's drop, the market was slightly lower Wednesday morning thanks in part to the ADP payroll report. According to the report, employers added 13,000 jobs in June, falling short of the consensus estimate for 60,000 jobs. This data looks at private-sector jobs only and suggests that payroll gains were tame in June thanks to small businesses that were cutting jobs.

All of Wednesday morning's news wasn't bad, as the European Central Bank (ECB) offer of three-month funds came in short of expectations. This data means that the region's banks may not be as ECB-dependent as some thought. In addition, the financial sector is prospering as the exposure to European banks was made to appear a bit less toxic. Furthermore, Democrats in Congress decided to take a bank tax off the table in the new financial overhaul bill. This move has helped bring Republicans on board and makes the bill look like it may pass.

Continue reading Dow on Verge of Worst Second Quarter Since 2002

Dow on Verge of Worst Second Quarter Since 2002 originally appeared on BloggingStocks on Wed, 30 Jun 2010 11:45:00 EST. Please see our terms for use of feeds.

Continue reading Contrarian Investing and Large Drops, Profitable or Wreckless?

Contrarian Investing and Large Drops, Profitable or Wreckless? originally appeared on BloggingStocks on Wed, 26 May 2010 09:00:00 EST. Please see our terms for use of feeds.

With the Dow looking set to open below the 10,000 level this morning, I decided to take a look at some technical statistics for the blue chip barometer. I was looking for some sort of signal that the Dow may be ready to turn around, perhaps the Dow was near some sort of support. Perhaps there is some technical formation that this latest "slight correction" has come to an end.

Something I found was that it looks like the Dow may have set a double bottom in the 9,900 region. A look at a weekly chart shows that this region acted as support in February, sending the Dow to its latest rally. Last week, the Dow bounced off this level and staged a late-week turnaround. The question is whether the Dow can maintain the momentum that started last week. In addition, the Dow may have found a measure of support from its 20-month moving average.

Continue reading Has the Dow Set a Double Bottom?

Has the Dow Set a Double Bottom? originally appeared on BloggingStocks on Tue, 25 May 2010 12:00:00 EST. Please see our terms for use of feeds.

So, Europe has stepped to the plate and agreed to a almost $1 trillion rescue plan to help avert a debt crisis, with the U.S. Federal Reserve pledging to do its part for overseas loans. The move has been cheered on the Street, as the major indices are significantly higher, the Dow Jones leading the way with a more than 400-point gain. This gain makes up a good portion of last week's plunge, which was driven by fears that Greece's debt problems would eventually spread to all of Europe. The fear was that such a scenario would put the future of the euro and the economies of the 16 countries using the currency in economic peril.

Continue reading Dow Jones Jumps 400 Points, Now What?

Dow Jones Jumps 400 Points, Now What? originally appeared on BloggingStocks on Mon, 10 May 2010 12:30:00 EST. Please see our terms for use of feeds.

Continue reading Dow Jones Falls Below 11,000

Dow Jones Falls Below 11,000 originally appeared on BloggingStocks on Tue, 04 May 2010 12:30:00 EST. Please see our terms for use of feeds.

Continue reading 3M Company Enjoys a Solid Day

3M Company Enjoys a Solid Day originally appeared on BloggingStocks on Tue, 30 Mar 2010 16:40:00 EST. Please see our terms for use of feeds.

Most of this past week the stock market was erratic. News from Asian and American Markets was generally positive, sending the indexes higher, until unsettling news from the European Union let the air out of the tires, resulting in 100 point swings of the Dow Jones Industrial Average, which ended Friday up about 50 points for the week at 10,850.36.

Each day started upbeat and then we would hear about Greek debt, bonds coming due, Germany pushing for IMF participation in any plan to help Greece. Finally when this looked to be settled, we then got news of economic turmoil in Portugal. This activity stimulated me to write the following recent commentary:

Continue reading Sunday Funnies: Retail Sales and Investors

Sunday Funnies: Retail Sales and Investors originally appeared on BloggingStocks on Sun, 28 Mar 2010 15:20:00 EST. Please see our terms for use of feeds.

For the first half of 2010, almost two thirds of money managers are bullish, according to Barron's. In fact, 54% are bullish, and 5% are "very bullish." Responses suggest that the Dow Jones Industrial Average is expected to gain another 5% by the end of the year.

According to Barron's, "Today's bullish investors see the major stock indexes making steady progress through next June, amid signs the U.S. economy is on the mend after a searing recession."

Continue reading Healthcare, tech and energy to outperform in next 12 months

Healthcare, tech and energy to outperform in next 12 months originally appeared on BloggingStocks on Mon, 02 Nov 2009 09:40:00 EST. Please see our terms for use of feeds.

Before the opening bell sounds on Thursday, October 29, Cincinnati-based Dow component Procter & Gamble (NYSE: PG) will report fiscal first-quarter earnings. Analysts believe P&G will report earnings of 99 cents per share with sales of $19.83 billion.

These expected results are lower than those of a year ago, when the company saw earnings of $1.03 per share and revenue of $22 billion. P&G set expectations low for this quarter, as it announced early in the quarter that sales are expected to fall again. Is this truly the case or is it a smart business move?

Continue reading Procter & Gamble earnings preview: Are expectations too low?

Procter & Gamble earnings preview: Are expectations too low? originally appeared on BloggingStocks on Wed, 28 Oct 2009 14:10:00 EST. Please see our terms for use of feeds.

We've watched stock market numbers bounce around for two years. Unemployment stats have served as unpleasant reminders that, for some, leading indicators haven't translated to reality. We look for so many ways to understand the brutal economic environment with which we've had to contend, and all the choices can make your head spin. So, let's make it simple. Here are eight ways to tack a label onto the financial world in which we live.

1. Lost market value
Total stock market losses from October 2007's top to March 2009's bottom: $11.2 trillion
Total gains in the stock market since the bottom: $4.6 trillion
Lost ground: $6.6 trillion

2. Bad days
Percentage of the 10 worst days in history for the Dow Jones Industrial Average that happened in 2008, by point drops: 60%
Percentage of the 10 worst days in history for the DJIA that happened in 2008, by percentage drops: 30%

3. Mutual funds
Value of mutual fund assets at the end of 2007: $6.5 trillion
... and a year later: $3.7 million
Lost value: $2.8 trillion

But, it got a little better at the end of August 2009: $4.5 trillion (value of assets)

Continue reading Eight ways to define the recession

Eight ways to define the recession originally appeared on BloggingStocks on Mon, 12 Oct 2009 14:50:00 EST. Please see our terms for use of feeds.

As Melly Alazraki noted earlier today, McDonald's Corp. (NYSE: MCD) is one of many heavy hitters to take the earnings stage today. Unfortunately, the fast-food firm didn't exactly impress with its latest quarterly figures; the company struggled under the weight of weak sales during the month of June, and saw its second-quarter profits slide 8% year-over-year as a result.

Specifically, the Big Mac parent raked in net income of $1.09 billion, or 98 cents per share, compared to its year-ago results of $1.19 billion, or $1.04 per share. Excluding a one-cent gain, earnings weighed in at 97 cents per share. McDonald's reported that strength in the U.S. dollar negatively impacted its quarterly results by about 9 cents per share.

Continue reading McDonald's disappoints strangle speculator with Q2 results

McDonald's disappoints strangle speculator with Q2 results originally appeared on BloggingStocks on Thu, 23 Jul 2009 11:20:00 EST. Please see our terms for use of feeds.

When oil lost almost $3 a barrel, stock futures indicated a lower opening for today. Just shy of 5 AM, S&P 500, Down Jones, and Nasdaq 100 futures were all off 0.9%. The drop in oil to $64 a barrel has called into question any projections of a quick economic recovery -- as if high unemployment weren't enough. The Monday after any long weekend is hard, and this one's going to hurt.

The direction in which futures are pointing continues Thursday's equity declines in the United States, bringing the S&P 500 its third consecutive weekly loss. For the day, it lost 2.91%. The Dow Jones Industrial Average lost 2.63% of its value, with the Nasdaq Composite Index giving up 2.67%. Year-to-date, the DJIA is down 5.6%, the S&P 500 down 0.8%.

Continue reading Oil down, futures down following holiday weekend

Oil down, futures down following holiday weekend originally appeared on BloggingStocks on Mon, 06 Jul 2009 08:30:00 EST. Please see our terms for use of feeds.

Continue reading Will GM finally be kicked out of the Dow?

Will GM finally be kicked out of the Dow? originally appeared on BloggingStocks on Thu, 07 May 2009 13:30:00 EST. Please see our terms for use of feeds.

Plenty of investors have been calling for General Motors Corporation (NYSE: GM) to be removed from the Dow Jones Industrial Average (DJIA) as the automaker hovers on the brink of bankruptcy. But, like it or not, GM's rock-bottom share price isn't justification enough to oust the stock. GM still represents a major chunk of our industrial economy.

However, GM's nationalization would more than justify its removal from the Dow. After all, that's why American International Group (NYSE: AIG) got the boot last fall -- once the government took a controlling stake in the insurance giant, Dow Jones wasted no time adjusting its blue-chip lineup.

Continue reading Will GM get booted from the Dow?

Will GM get booted from the Dow? originally appeared on BloggingStocks on Tue, 31 Mar 2009 11:50:00 EST. Please see our terms for use of feeds.

Continue reading The life and times of the original Dow Dozen

The life and times of the original Dow Dozen originally appeared on BloggingStocks on Thu, 05 Mar 2009 11:40:00 EST. Please see our terms for use of feeds.

Continue reading Dow Jones Industrial Average blasted for including cheap stocks

Dow Jones Industrial Average blasted for including cheap stocks originally appeared on BloggingStocks on Mon, 23 Feb 2009 08:15:00 EST. Please see our terms for use of feeds.

This post is part of a series featuring bargain stocks that are worth a look now. See more Cheap Stocks.

From a contrarian perspective, International Business Machines (NYSE: IBM) might seem like an odd choice. Large-cap tech stocks are heavily populated by hedge-fund investors, and securities with this dubious distinction have been absolutely hammered this year. However, there's a certain something about IBM that distinguishes it from the pack.

For starters, there's no cult following for IBM -- and cult favorites, such as Apple (NASDAQ: AAPL) and Research In Motion Limited (NASDAQ: RIMM), have performed significantly worse than IBM this year. The market's expectations for these beloved gadget-makers are perpetually running at peak levels, which makes them more vulnerable to a shift in investor sentiment. Conversely, when was the last time you heard someone really getting excited about IBM? In this market, "boring" can be a good thing.

In its mid-October earnings report, IBM edged past analysts' consensus third-quarter profit estimates by 3 cents per share. While sales of computer hardware slipped during the quarter, that weakness was more than offset by strength in software and services revenues. Big Blue also reassured the Street that its liquidity position was "very strong," a comment that carries more weight than ever before in the current environment.

Continue reading Cheap Stocks: IBM

Cheap Stocks: IBM originally appeared on BloggingStocks on Fri, 05 Dec 2008 14:26:00 EST. Please see our terms for use of feeds.

Yesterday, the market had a swing of over 900 points as indexes hit new lows for the year and then pushed upward to close 6% or so higher. Overnight, markets in Asia and Europe staged rallies of their own.

The stock market may march up for a while, but that can't be sustained and the odds are likely that it will crash and make new lows again before year's end.

The fiction is that the markets trade based on what they see six months into the future. Perhaps they see GDP recovering by then. Not a chance.

George Soros said yesterday that there is some chance that the world economy will enter a depression next year. That may be extreme, but a majority of business leaders and economists who want to be heard on the subject say that this is the most significant downturn of their lifetimes.

There is a view that falling housing prices are at the core of the disaster that has overwhelmed the financial structure of the country and is now hurting everything from retail sales to tech company revenue. Housing may be helped by government programs, but if unemployment hits 8% or better next year, the number of people who have to give up their homes could rise sharply. Lower interest rates do not help people out of work.

Another misconception about the future is that oil prices will continue to fall. With some OPEC nation's facing budget deficits due to crude dropping from over $140 to $55, the cartel will have to cut production to meet demand. That may mean a huge cut, but OPEC can match the drop in the global need for oil with a paltry supply.

The stock market has not stopped going down.

Douglas A. McIntyre is an editor at 247wallst.com.

Why a stock market rally can't be sustained originally appeared on BloggingStocks on Fri, 14 Nov 2008 09:15:00 EST. Please see our terms for use of feeds.