From the category archives:

Earnings

This week got off to a rocky start as Greece and Germany remained at odds regarding the fiscal future of the currency bloc. Many investors fear that without a significant aid package, Greece will endure a widespread default which has the potential to sink markets around the world. Despite the issues persisting overseas, the focus of the week will still be heavily centered around the U.S. economy, as we close out earnings season and report unemployment figures on Friday. With a number of bellwether firms slated to announce earnings in the next few days, markets may soon shrug off Greek fears and focus on the domestic economy instead [see also The Ten Commandments of Commodity Investing]. [click to continue…]

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As we dive further into earnings season, investors will do their best to focus on relatively strong U.S. data, as opposed to decisions by the Fed, the Greek debt crisis, and other factors hindering the recovery. On Tuesday, investors saw Apple (AAPL) crush market estimates with their quarterly earnings. The shares soared the most in three years as iPhone and iPad sales doubled that of last year’s holiday season. What’s more, Apple has now narrowly taken over Exxon Mobil (XOM) for the world’s most valuable company by market capitalization. While it is unclear how long the firm will remain in first place, Apple’s rally is certainly helping to prop up markets amid investor concerns [see also The Ten Commandments of Commodity Investing]. [click to continue…]

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With U.S. markets taking a holiday on Martin Luther King Jr. day, today will mark the first reaction to Friday’s downgrade. After market close on Friday, Standard and Poor’s downgraded the debts of nine European countries, including the AAA-rated France and Austria. Friday’s market were already down on the news that France took a hit, […]

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Despite starting off the week in hole, domestic equity indexes have turned in a monster performance for the month, with the S&P 500 clinching a stellar 11% gain in October. Profit taking swept across virtually every corner of the market on Monday after investors were a bit rattled by the Japanese bank intervening in the […]

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Thursday was a bright green day on Wall Street as investors piled into equity market after European leaders took another step forward in the right direction. Policymakers in Brussels agreed upon a $1.4 trillion “bailout” while private bondholders negotiated to accept a 50% writedown on Greek debt. Although several key issues remain unanswered, investors are […]

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The past week was, again, extremely choppy as European rumors took center stage, leaving investors fixated on events coming out of Germany and France. While some progress was definitely made in the negotiations, this week’s summit could play a key role in determining the long term future of the currency bloc. Beyond these events, investors […]

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Stocks dipped lower on Thursday after European leaders decided to schedule a second summit meeting for next week. The prolonged debate between Germany and France spooked equity markets seeing as how investors will now have to wait yet another week before a comprehensive plan is finalized. Equities managed to regain much of the lost ground […]

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Stocks drifted lower on Wednesday after euro zone debt-woes resurfaced and investors at home were disappointed with Apple’s rare earnings miss. Despite slightly worse-than-expected third quarter performance results, analysts at Deutsche Bank are maintaining their “Buy” rating on shares of Apple, with a price target of $530. Beige Book data was also released yesterday, showing […]

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Stocks climbed higher on Wednesday as uncertainty over the fate of the euro zone appears to have seemingly disappeared from the market this week. Domestic equity indexes extended gains into green territory for the 7th consecutive session yesterday, leading many to believe that the markets may be showing signs of a bottom in the near […]

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Wall Street was fairly flat yesterday as euro zone euphoria tapered off after the Slovak government fell short on votes needed to approve the region’s $600 billion bailout fund. Chris Walker, strategist at UBS, added, “Overall, we believe the vote will eventually pass, probably now later in the week and under a caretaker government, but nonetheless […]

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As the economy continues to weaken, highly cyclical stocks have been getting hammered more than most, leading the market lower over the past month. One of the most troubled in this time period has undoubtedly been the transport sector as that particular corner of the market has lost close to 1,000 basis points more than the overall […]

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Given the ongoing weakness in the global economy, many investors have abandoned bets on risky sectors of the market and have instead focused their attention on traditional defensive segments. Thanks to relatively high growth prospects, health care has once again become a popular segment, due to its noncyclical nature and high barriers to entry. Yet, despite […]

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