Search

The article discusses results of the publication's 13th annual review of the best and worst 1-year, 3-year, 5-year, and 10-year stock market performances among 1000 firms surveyed. During 2007 the best-performing stock was First Solar, and the worst performer was Countrywide Financial. For the 5-year period through 2007, travel & tourism was the best-performing sector.

The article focuses on the business performance of U.S. automobile companies General Motors and Ford Motor. It states that both companies suffered from similar issues such as debt loads, high cost of health care and pensions for former employees. Stocks of General Motors decreased 96 percent while Ford Motor decreased 69 percent. According to KDP Investment Advisors, the debt of GM is valued at less than 10 cents on the dollar while Ford's trades at 44 cents on the dollar.

The article reflects on the performance of stocks and the U.S. dollar against other major currencies. In April, the dollar rose to its highest level against the euro, representing the strongest against major currencies other than the Japanese yen. Meanwhile, stocks continue to rally but eventually pulled back indicating a further weakness. Stocks declined in reaction to the weakness in crude oil prices.

This article reports on the bullish performance of exchange trade funds (ETF) on April 14, 2009. The Russell 1000 Financial Services Index gained nearly 59% since March 9, 2009. The rise in ETFs is driven by the surge in bank stocks. Some of the best performance ETFs are Direxion Financial Bull 3X, ProShares and Ultra Financials.

The article analyzes the performance of the U.S. stock markets as of April 2009. It mentions the volatility of the U.S. stock markets. Strategists say that during a volatile market, there is a need to combine long and short positions, if only to protect against dramatic shifts in the market. Also discussed are the efforts of active traders in strengthening stocks.

The article focuses on the impact of the weak economy on the stocks of U.S. retail chain Wal-Mart Stores Inc. While major stock averages increased in March 2009, the retailer's shares performed poorly as it reported declining same-store sales for the month. The shares declined by 3.7%. Jack Ablin of Harris Trust noted that investors are now more optimistic when it comes to the prospects of an improving economic cycle.

This article explains that Sealy, the mattress maker, has posted losses of 23% of its stock value on April 7, 2009. It says that Sealy's stock rose for a whole week after news of its plans to sell more securities. It points out that in an ordinary market news of secondary offerings trigger a sell among investors, but uncommon market conditions tend to reward companies for their ability to raise capital.

The article focuses on the return of the industrial conglomerate General Electric in the options market in April 2009. It recalls that the company posted earnings that made investors believe that U.S. companies are performing well yet was 7 cents shy of forecasts on April 11, 2008, resulting to a nearly 13% drop in stocks. It adds that investors have opted to protect themselves should the company experience problems again in the market on April 17 during which April options expire.

The article looks at whether the rally in stocks in the U.S. in early April 2009 could mean the end of recession or a result of oversold stocks. It is said that the major stock averages have all rallied by at least 20%. According to the author, reports of improvements in housing, industrial production, manufacturing and retail sales suggest that the trough of the recession could have been reached. UMB Scout Management chief investment officer (CIO) Bill Greiner stated that investors are beginning to feel confident that markets are recovering.

The article focuses on the stock performance of Freeport McMoran Copper & Gold and the copper stockpiling in China, which are considered as signs of economic rebound by investors. According to Markit Group, the firm's stocks increased by 27% in March 2009 and adds that its credit default swaps cost more than $700,000 to insure $10 million in bonds. Analysts from Deutsche Bank have warned that copper stockpiling in China is not necessarily a precursor of more economic demand in the near-term.

The article focuses on the weakness of the Japanese yen as of March 2009. It notes that the yen continues to survive for the year amid having an economy that is worse than most of the other major industrialized nations. It adds that a previous strength of the yen led to a drop in exports as the goods of domestic producers became less attractive. It mentions that the movement of the yen has reflected that of U.S. stocks in which the yen weakens when U.S. stocks are stronger.

The author talks about the rallies in the stocks in the U.S. for the quarter ending March 2009. He mentions that the Nasdaq Composite Index entered into a positive territory for the year amidst a drop in stocks. He discusses why it is important for investors to chase performance during the quarter. He adds that investors believe that exhibiting a decent performance at the end of the quarter will benefit shares at least through the early part of the subsequent week.

The article examines the view of some investors in the U.S. about the link between increasing crude prices and strength in equities in March 2009 and improved global demand. The author notes that the enhancement in the market condition can be attributed to the impact of energy stocks on major equity averages. He argues that it is not a coincidence when the stocks showed strength while oil was rallying in the morning of March 25 but declined by $1.21 at $52.77 a barrel in mid-afternoon trading.

The article focuses on securities trading volume in the U.S. being weighed by analysts for hints on whether the strength of the market will last for a longer period of time. It says over 2 billion shares changed hands on the New York Stock Exchange (NYSE) on March 10, 2009. It notes that the volume will have to remain above average in order to convince investors that the recovery of the market will last. It says the current market trend has been described as similar to the mid-1970s and early 1980s when volumes were low due to lack of interest in shares.

The article focuses on the implication of the performance of the volatility index (VIX) in the U.S. in March 2009. As the stock market rallied on March 13, the index rose before moving higher again despite the decline in stocks on March 16. Those in the options market are anticipating a pull-back in equities in response to the rally as demonstrated by the rise of the VIX, according to strategists. It is predicted that the VIX may remain around the 40 level in relation to the level of actual volatility in the market.

The article reports on the worst performance of the utilities sector in the Standard & Poor's 500-stock index in the U.S. in March 2009, which is down 9%. Strategists said the decline of the sector could be attributed to the efforts of the administration of U.S. President Barack Obama to limit carbon emissions through cap-and-trade program that would tax offenders, which include many utility companies. Also weighing on the sector are recent dividend cuts and expectations that favorable tax treatment for dividends will lapse in 2010.

The article focuses on the impact of negative rumors about a company on their stock's performance. An example cited is the case of Wells Fargo & Co. Bearish options activity has led to increases in the company's shares in line with concerns that it will post more losses due to its purchase of Wachovia Corp. Such rumor, according to the author, has two distinct characteristics: one, it involves the most troubled sector in the market and two, it can be considered plausible for reasons that the idea of reporting more losses cannot be dismissed.

The article reports on the decline in the shares of Costco Wholesale Corp. after it warned of lower-than-anticipated earnings for its fiscal quarter ended February 15, 2009. Analysts noted that sales continue to skew toward lower-cost items such as food and other consumer staples. The decline reflects a grave outlook from the investment community and the retrenchment by consumers may hurt the discount warehouse retailer more than it does other discounters.

The article explains the observed gains in the stock market in the U.S. in spite of reports of job cuts in many companies due to the economic recession, as of January 2009. Analysts point out that layoffs are often a late-cycle indicator since companies react late in an economic downturn to save costs in the face of declining demand. Investors have factored in the reality of layoffs in the economic situation and have accepted the worst. Given the forward looking attitude of capitalists, investors believe it is time to purchase stocks.

The article reports that U.S. banks Northern Trust Corp. and Hudson City Bancorp performed better than the others as of January 21, 2009. Northern Trust shares rose by 31%, making it the best-performing bank among those in the Philadelphia Stock Exchange/KBW Bank Index, and reported an 18% increase in revenue and exceeded analysts' expectations. Meanwhile, shares of Hudson City Bancorp were up 6.7% and in 2008 its stock climbed by 6%.

The article cautions investors in the U.S. against selling stocks that gains value in a short period of time because it often leads to more losses. Steven Wolf, managing director of investments at Source Capital Group, said that he is more interested in holding stocks that gains more than 20% in just a period of weeks. DryShips Inc., whose stock closed at $16.58 a share in January 2009 is cited as an example of a company that has managed to achieve gains in a matter of weeks.

The article focuses on investing in airline stocks, which have been proven as the best performers in the market despite the economic slowdown by gaining 40% since the beginning of December 2008. The performance of the airline industry benefited from news from Continental Airlines, which estimated its December 2008 revenue per average seat mile to be 3.5% to 4.5% higher. Sean Peche, portfolio manager at BlueAlpha Investment Advisory, said that airlines who have survived the toughest times are actually pretty lean but they could be terrible business.

The article reports that investment managers are focusing on corporate debt which offers yields at high spreads and dividend-paying stocks that will give them some guarantee for returns. James Cox, managing partner of Virginia-based Harris Financial Group said they have rendered short-term instruments worthless in terms of yielding any type of return so they are turning to corporate bonds and mortgage-backed securities. Companies that have high-dividend-paying stocks include Pfizer, Citigroup and Bank of America.

The article reports that traders are focusing on shipping stocks during the last two trading sessions of 2008 and first trading day of 2009. The shares of Dryships Inc. and Eagle Bulk Shipping Inc. closed on December 23, 2008 at $8.99 and $5.18, respectively, but gained 17% and 7.8%, respectively, by January 2, 2009. Paul Foster, market strategist at Flyonthewall.com said that the posted gains are indicative that the end-of-the-year tax selloff is over and the shipping stocks are expecting a bounce.

The article reports that Family Dollar Stores Inc. is set to finish the year 2008 as the best performer in Standard & Poor's 500-stock index with a year-to-date rise of 33%. Throughout the U.S., Family Dollar operates more than 66,000 retail discount stores specializing in consumer staples such as food and cleaning products. Meanwhile, Wedbush Morgan analysts claimed that Family Dollar becomes a more attractive shopping option as consumers try to save money.

The article focuses on the good and bad news in the financial services industry as of 2008. It states that one of the bad decisions in the sector was made by Jerry Yang, former chief executive officer (CEO) of Yahoo, who rejected a $49 billion offer from Microsoft which led to a sharp decline in his company's stock. Merrill Lynch CEO John Thain reportedly made a good decision when he sell his securities firm to Bank of America which saved Merrill.

The article reports on the reduction made by Newell Rubbermaid on its 2008 earnings forecast on December 17. Analyst consensus for the company's full-year earnings was $1.43 a share and 32 cents a share for the 4th quarter, but the maker of food-storage containers, laundry baskets and other household goods dropped its 2008 forecast to a range of $1.17 to $1.21 a share and the 4th-quarter range to 6 to 10 cents a share. It is claimed that Newell's move caught investors by surprise, as its shares declined by 27% to $9.58.

The article presents the outlook of stock investors on the stock market of the U.S. Alan Lancz, who runs his own investment advisory firm, questions the optimistic outlook of some investors on the market. A survey by Duke University has found that 60% of chief financial officers do not expect the U.S. economy to recover before the fourth quarter of 2009. It explains how the negative outlook of finance chiefs would negatively affect stocks.

The article reports on the decision of Wal-Mart Stores to suspend its stock buyback program. Wal-Mart has decided to suspend its buyback program after its stock had risen to relatively high levels. The stock, at $54.63, is up 15 percent in 2008, while the broader Standard & Poor's 500 is down 41 percent, the author says.

The article reports on the weak securities trading in the U.S., particularly the New York Stock Exchange (NYSE). It is noted that trading volume in futures, stocks and options has been going down. It is asserted that cost of protection against the risk of large losses has increased because of market volatility.

The article discusses the market outlook for the U.S. as inferred from the prices of stocks and bonds. Although the earnings yield for stocks seems reasonable relative to bond yields, that yield is based on estimated forward earnings. If those estimates prove too optimistic, stocks could experience a substantial decline before their earnings yield is once more aligned with bond yields.

The author reflects on the financial performance of Williams-Sonoma amid the 9.8% increase in the Standard & Poor consumer-discretionary sector. The shares of the furniture and home-accessories retailer decreased by 24% to $8.01. According to Bruce Zaro of Delta Global Advisors, the high-end retailers are considered not profitable as they are related to housing. Analysts also state the results is dependent on economic conditions.

The article reports on poor performance of the health care sector as of October 2008. According to it, the industry is down 25% compared with a 39% drop in the Standard & Poor's (S&P) 500-stock index. It states that the stock of Coventry Health Care Inc. lost 51% while that of Merck & Co. lost 6.5% after posting a 28% decline in quarterly profit.

The article reports that investors who put their money on technology stocks get knocked off stride by falling prospects for the global economy and a resurgence in U.S. dollar. It says that technology shares in 2008 were remarkable for their relative strength in the middle of bad conditions. It states that market dynamics may also contribute to a decline in profits.

The article reports on the decline in the shares of Circuit City Stores Inc. by 94% in the U.S. since James Marcum took over as chief executive on June 27, 2006 following the resignation of Phil Schoonover as chairman and chief executive. Such appointment failed to win over the analyst community. Analysts at Jefferies & Co. state that Schoonover's departure indicates that the sales are getting worse. Other analysts said that they hope the firm will end up in either a strategic buyer or private-equity option.

The article reports on the state of the U.S. stock market in September 2008. According to Michael Strauss of Commonfund, the Wall Street is a funny place in different fashion. Ari Bergmann of Penso Capital said that the unwinding among investors, stocks and commodity markets may end soon if normalcy continues.

The article reports on the performance of stocks in the energy sector in the U.S. as of September 10, 2008. Standard & Poor 500's index registered a decline of 24% for the third quarter of 2008, putting the industry as the fourth worst sector in 2008. Shares held by hedge funds continue to liquidate their stakes but potential investors are noted to still be waiting until all funds are cleared out of the energy stocks.

This article examines prospects for the hedge fund market in 2008. A Merrill Lynch analysis found that conflicting market signals, concerns about slowing economic growth and the financial-sector chaos led to a massive cash-raising by hedge funds. There are a total of $155 billion cash balances in hedge funds in July. Particular focus is given to the performance of diversified hedge funds this year. The weakness in technology shares and resource stocks have affected macro-oriented hedge funds.

The article reports the 25% decline in share value of Pacific Sunwear of California after it announced that it will cut earning expectations for the last quarters of 2008. On August 22, 2008, more than 16 million shares of the company changed hands making it the ninth most active on the Nasdaq Stock Index. According to the article, analysts are clearly disappointed not only with Q3 or Q4 but also with the August month to date computation which do not fare well with the back to school shopping season.

The article reports on the developments in the Energy Sector Select SPDR (XLE) and the Financial Sector Select SPDR (XLF). A 12% increase has been reported by the XLE exchange traded fund (ETF) while XLF ETF decreased by 30% for the first six months of 2008. However, when the oil reached its peak, the two ETFs had a reversed transition in July 2008. XLF posted an 8.3% increase while the XLF fell 20%. Analysts believe the fundamentals still consider energy stocks as profitable and financials as troubled.

The article reports that the shares of Elan Corp. have achieved the rare feat of hitting a 52-week closing high, with $36.82 on July 10, 2008 and low, with $9.93 on August 1 in a little more than three weeks. The shares of the firm fell, after it said that two more cases of brain disorder progressive multifocal leukoencephalopathy (PML) had been confirmed in users of the multiple sclerosis drug Tysabri, which Elan manufactures with partner Biogen Idec Inc. In New York Stock Exchange trading on August 1, the U.S. depositary receipts of Elan dropped 50%.

The article reports on the 45% decline in shares of Crocs Inc. It says that the stock of the footwear manufacturer closed at $4.95 on July 25, 2008 after it cut its estimates for the 2nd quarter and said that the rest of the year would come out as well as expected. The company announced that it would report about break-even earnings for the year as sales are predicted to drop from 2007.

The author reflects on the different responses of investors to liquidity news. He presents the consequences of such announcements to Washington Mutual Inc. and National City Corp. He states that Washington shares posted a 12% increase while National shares fell by 4.5%. According to managing director Dan Alpert, the public also wants a justification to these declarations. The author concludes that what caused the stock prices of the two companies to be in such direction cannot be identified.

The article focuses on Lehman Brothers. It says that two positive analysts' notes on the company had helped its stock to jump for a time, but it still ended with a decline of 14% to $12.40 a share. One of these notes was from Brad Hintz of Sanford C. Bernstein who said that Lehman could survive any crisis ahead due to the strengthening of its funding base and balance sheet, combined with the continued back up from the U.S. Federal Reserve.

The article reports on the 2008 outlook of Richard Bernstein of Merrill Lynch and Byron Wien of Pequot Capital Management. Merrill's best investing idea is centered on capital preservation rather than making big returns. Wien predicted that the U.S. would enter into its first recession since 2001 and suggested that stagflation would become a hot issue. Bernstein predicted that the consumer-defensive stock would be performing better than consumer cyclicals. He also suggested staying away from value traps such as financial stocks.

The article reports that the large selling of shares by many investors that created a stock market downfall has made them waiting for the right time to invest again. Analysta say that there are some quantitative signs which show that the large downloading of shares by investors have reached the lowest level. Quantitatively, one such signs is a large volume of transaction, according to Doug Peta at J. & W. Seligman & Co. Another sign is the big numerical changes in the instability of the stock market, according to Barry Ritholtz at Fusion IQ.

The article reports that investors looking for positive developments were hardpressed to find them, as the few efforts to rally were cannibalized by sellers. According to traders, the investing community has been quick to sell shares on rallies, taking advantage of brief surges to get out of positions with profits. Art Hogan, chief market strategist at Jefferies & Co., says the path of least resistance in the market is down.

The article reports on the multiyear low trading of pharmaceutical firms Pfizer Inc. and Merck & Co. in 2008. It mentions that their poor performance appeared odd in a defensive sector to which investors turn to for its safe plays since consumers need prescription drugs regardless of economic conditions. Pfizer dropped to its 11-year low on June 20 while Merck traded at its worst levels in the previous week. It notes that the struggle of large pharmaceutical firms came with the expiration of patents for their drugs.

The article reports on the decrease in stocks of Lehman Brothers on June 9, 2008 after the news that the bank plans to raise $6 billion in capital and its projected quarterly loss of $2.8 billion came. Its shares fell by 8.7% during its New York Stock Exchange trade. But investors are more optimistic with the bank's options activity. Other large banks that experienced shares decline were Wachovia Corp. and Washington Mutual Inc.