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Market Update: Apple (AAPL), Kraft Foods (KFT), XTO Energy (XTO), NYSE Euronext (NYX)
Apple Inc. (NASDAQ: AAPL) cut the prices on most iPod digital media players ahead of a company event in San Francisco. Apple lowered the price of its 16-gigabyte iPod touch to $249 from $299 and cut the price of the 8GB version to $189 from $229. Apple also took down the prices of its iPod nano players to $149 from $189 for a 16GB model, and lowered the 8GB version to $129 from $149. Additionally, Apple cut the price of it 120GB iPod classic device to $229 from $249. The moves were seen as more evidence that Apple will unveil a new…
9Sep2009 | Money Morning | 0 comments | ContinuedMarket Updates: Boeing (BA), Dollar Tree (DLTR), Vonage Holdings (VG), Google (GOOG)
New Home Sales Rise 9.6%; Homebuilders Buying Lots Again; Thrifts Report First Profit Since 2007; Air Berlin May Cancel 787 Order; German Confidence Increases; Beer Prices Rise; Dollar Tree Beats Wall Street Estimates; Vonage Stock Soars
- The U.S. Commerce Department said yesterday (Wednesday) new home sales surged 9.6% to a seasonally adjusted annual rate of 433,000 in July over the previous month, demonstrating the housing market is slowly making progress. The median sales price was $210,000, down slightly from June’s $210,400 and a decline of 11.5% from year-ago levels. Since the market’s bottom in January, sales have gained 30%. Still, sales…
China Curtails Bank Lending
Beijing continued a delicate balancing act yesterday (Wednesday), vowing to keep stoking its economy with funding from its $787 billion stimulus program even as it implements new controls on bank lending.
After spending three days visiting the restive eastern province of Zhejiang, Premier Wen Jiabao argued for maintaining the loose economic policies implemented under the stimulus program, saying it’s too soon to be “blindly optimistic,” according to a statement by the State Council.
His remarks are likely to fuel an ongoing debate between government officials over whether it’s time to rein in bank lending.
After the government called on Chinese banks to provide…
27Aug2009 | Money Morning | 0 comments | ContinuedBen Bernanke Now Faces New Challenges
For U.S. Federal Reserve Chairman Ben S. Bernanke, the biggest challenges are still to come.
U.S. President Barack Obama yesterday (Tuesday) nominated Bernanke for a second four-year term as chairman of the U.S. Federal Reserve. The appointment was mildly controversial and must be approved by the Senate, but lawmakers and investors overwhelmingly approved of the decision to the central bank chief who has shepherded the U.S. economy though its worst financial crisis in more than 70 years.
Bernanke has been criticized for greatly expanding the powers of the U.S. central bank by bailing out large financial institutions like American International Group Inc.…
26Aug2009 | Money Morning | 0 comments | ContinuedMarket Updates: Bank of America (BAC), Toyota Motor (TM), AT&T (T), Apple (AAPL)
Consumer Confidence on the Mend; Q2 Housing Prices Rise From Previous Quarter; Judge Questions BofA/SEC Settlement; Chrysler Sues Former Parent; Toyota to Cut Production Capacity by 1 Million; Sony To Sell Wireless e-Book Reader; Apple’s Jobs Leading Tablet Device Development, Says WSJ
- The Conference Board Consumer Confidence Index has rebounded to 54.1 in August after last month’s decline to 47.4. “Consumers were more upbeat in their short-term outlook for both the economy and the job market in August, but only slightly more upbeat in their income expectations,” said Lynn Franco, director of The Conference Board Consumer Research Center. “And, as long as…
The Secret to Building a Portfolio for Bull and Bear Markets
With the very real possibility that the stock market recovery has outrun the global economic rebound, investors need to consider defensive investments that will provide protection and even some profits should some of the world’s top stock markets take it on the chin.
To be sure, stock prices in many of the markets around the world have come a long way since March. Investors who stood and watched as their portfolios were eviscerated last year have actually recovered at least part of their losses.
But now it’s looking like stock prices in some markets have risen more than was warranted – some…
26Aug2009 | Money Morning | 0 comments | ContinuedNouriel Roubini Has Concerns About Inflation
Nouriel Roubini, professor at the Stern Business School at New York University said in an op-ed piece in today’s (Monday’s) edition of the Financial Times that while the global economy is “starting to bottom out” there is “a rising risk of a double-dip W-shaped recession,” mainly because of the threat posed by inflation.
According to Roubini, who is often credited with predicting the financial meltdown, there are three open questions concerning the global economy:
- When will the recession be over?
- What will be the shape of the economic recovery?
- Are there risks of a relapse?
The first question is different for every country, as some had…
25Aug2009 | Money Morning | 0 comments | ContinuedMarket Updates: Home Depot (HD), Sears Holdings (SHLD), Bank of America (BAC), Procter & Gamble (PG)
Dollars for Dryers, GM Ogles Opel, BofA Defends Settlement, Warner Does Debt, Dollar Dances Higher
- First it was “Cash for Clunkers.” Now it’s “Dollars for Dryers.” With sales of big-ticket home appliances in the trash compactor, the Obama administration has allocated $300 million for its “Energy Efficient Appliance Rebate Program.” The initiative is on tap for this fall. Shipments of washers, dryers, refrigerators and ovens dropped 10% in 2008 and are down 15% through July, according to a report by the Association of Home Appliance Manufacturers. Home-appliance retailers – Home Depot Inc. (NYSE: HD), Sears Holdings Corp. (Nasdaq: SHLD) and The Lowes…
iShares iBoxx $ Investment Grade Corporate Bond Fund (NYSE: LQD)
The U.S. stock market has enjoyed a strong rally since the early spring, but while the economy has shown improvement, it still faces major headwinds. So it may be best to hedge against the U.S. dollar, which is likely to experience a significant decline over the next few months.
There are a lot of uncertainties permeating the market right now, not the least of which is healthcare reform. Will that reform entail a public option that could add $1 trillion to the deficit? How is reform going to be financed? And is it going to mean higher costs for employers…
25Aug2009 | Money Morning | 1 comment | ContinuedGrowing Debt and Budget Deficits Remain Biggest Obstacles
Even as investors get more and more bullish about the outlook for the U.S. economy, the economy’s underlying foundation continues to erode.
In a report to be released this week, the Obama administration will boost its 10-year projectiojn for the federal budget deficit to about $9 trillion – an increase of roughly $2 trillion, or 29%, from its prior projection, Fox News reported over the weekend, citing a source from the Office of Management and Budget (OMB).
The new cumulative deficit projection – for 2010-2019 – replaces the administration’s previous estimate of $7.108 trillion. Changes in budget projections – whether they result in a…
24Aug2009 | Money Morning | 2 comments | Continued
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