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f1acda048a23b6b655e7b97c33e6042f | https://www.cnbc.com/2009/10/13/madoff-vs-skilling-who-would-win-that-prison-brawl.html | There Must Be A Pony In Here Somewhere | There Must Be A Pony In Here Somewhere
It’s the stuff headline writers’ dreams are made of: Bernie Madoff gets into a prison brawl.
Well, I have to take a little issue with use of the word “brawl” — it was really two old guys shoving each other. It wasn’t a good old-fashion prison beatdown like the one Allen Stanford got — a concussion, broken nose and two black eyes.
Still, you have to admit, it was pretty AWESOME.
And, of course, all this comes as the former Enron CEO Jeff Skilling, currently serving 24 years for his role in one of the biggest corporate frauds in history, gets his day in court — the Supreme Court — which means he could walk after all.
That convergence sparked some newsroom discussion: Why hasn’t Skilling ever been involved in a prison brawl? Furthermore, if he was, would he win?
Natch, that, led to a Prison Fantasy League: If Bernie Madoff and Sanford Allen got into a prison fight, who would win?
(Eh, probably Madoff. I’ll bet Sanford fights like a girl. All flapping hands and whatnot.)
OK, ok, what about Madoff vs. Skilling? You’ve got the scrappy New Yorker vs. the explosive energy chief.
We present to you: THE PRISON FANTASY LEAGUE. Six contenders, five matches. You vote!
THE CONTENDERS:
Bernard Madoff
Bernie Madoff: 71 years old. From New York. Serving 150 years for one of the largest Ponzi schemes in history that swindled hundreds, including quite a few celebrities—even Kevin Bacon.
Fun fact: Obsessive compulsive. Insists on smoked salmon sandwiches. No round edges tolerated.
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a2b55dad62079ad12561733d8af41512 | https://www.cnbc.com/2009/10/13/more-banks-to-fail-but-bailout-probably-not-needed-bair.html | More Banks to Fail, But Bailout Probably Not Needed: Bair | More Banks to Fail, But Bailout Probably Not Needed: Bair
Bank failures are going to continue at a fairly strong rate but taxpayers hopefully won't be asked to foot the bill, FDIC Chair Sheila Bair told CNBC.
FDIC Chairman Sheila BairAP
Amid speculation that the Federal Deposit Insurance Corp might need to ask the Treasury Department for help covering insured deposits, Bair said the agency should be solid this year but acknowledged that 2010 could be difficult.
"Everyone has bailout fatigue so, yes, we do want to avoid that," she said in a live interview. "I never say never. But at this point based on our current projections I think we can continue to rely on the industry to fund the FDIC."
But bank health continues to be an issue.
A tepid economic recovery combined with defaults on commercial and residential mortgages will put pressure on the industry.
Click Here for Full Video of Bair's Comments
"Our projection right now is bank failures will continue at a pretty good clip through 2011. We're prepared for it, we're ready for it," she said. "The rate of healing the economy will drive the rate of healing of the banking sector."
Selling the toxic assets that are clogging bank balance sheets has been going well, Bair added. The FDIC has developed a test mechanism that is showing alt-A, or nontraditional loans, fetching 71 cents on the dollar in the open marketplace.
At the same time, Bair welcomed new banking regulations to avoid the causes of the financial crisis but cautioned against putting too much pressure on struggling institutions, particularly in capital reserve requirements.
"We need to be very careful in how we do that. It needs to be a gradual process," she said. "If we spike up capital levels too much now it could impair banks' ability to lend, and we need them to lend into the economy now."
Slideshow: World's Safest Banks
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228ade2ea9517121e05e5d05d5481781 | https://www.cnbc.com/2009/10/13/novartis-vindicates-vanda.html | Novartis Vindicates Vanda | Novartis Vindicates Vanda
Novartis Headquarters
I like alliteration. Could you tell?
And who doesn't like a comeback story?
Vanda Pharmaceuticals may go down in industry history as one of the most remarkable turnaround stories. A few months ago it was literally a dollar stock. I had once covered the company because it had a unique story of trying to turn other drug companies' trash into treasure. But over the years, the attempted transformation of the products didn't go so well and Vanda fell off of my radar screen because it's market value had become way too small. The FDA had said VNDA's main developmental drug, Fanapt for schizophrenia, wasn't approvable. End of story. Then, out of nowhere, the FDA shockingly approved it. The stock surged back to life and Vanda once again became a player.
But the drug's backstory makes this an even more compelling tale. Several years ago, Novartis decided Fanapt wasn't worth pursuing and sold it to Vanda for an undisclosed price. They don't always try to unload them at junk sales, but drug companies scrap stuff all the time for any number of reasons.
As fate would have it, I was coincidentally doing a live interview with Novartis CEO Dr. Daniel Vasella the morning that Vanda announced the FDA had approved Fanapt. I asked him whether, in hindsight, it was a mistake to abandon the drug. I went back and transcribed his answer:
"Based on the data we had we made a decision which we thought was rational. You also have to take into consideration that we always have several opportunities. So, we have to make tradeoffs between different drugs we want to develop. And so, I'm happy for them and I'm happy if it's a good drug for the patients."
Now, five months later, Dr. Vasella has made another tradeoff. But this one, to buy back some of the rights to Fanapt, is gonna cost his company a pretty penny. NVS is paying VNDA $200 million up front and is on the hook for as much as $265 million. It will also pay Vanda a royalty on sales. CEO Dr. Mihael Polymeropoulos told me in a "First on CNBC" interview this morning that the royalty will be in the low double-digits. And NVS will be picking up certain expenses. At first, VNDA shares shot up on the news, but they weakened over the course of the trading day. The stock is up 2,200 percent this year.
VIDEO0:0000:00Inside the 'Boomerang Deal'
Besides taking profits, investors might also be disappointed it wasn't a straight-up acquisition. But at least one analyst thinks that could still be in the cards. David Moskowitz at Caris & Company told clients in a research note today, "This deal has all the hallmarks of a creeping acquisition, in our view, and a strong ramp of Fanapt and the achievement of clinical milestones for Fanapt Depot (a longer-acting, injectable form) are likely triggers for NVS to move on the whole company." C&C would like to bank VNDA.
The companies say Fanapt could hit the market early next year.
Questions? Comments? Pharma@cnbc.com and follow me on Twitter at mhuckman
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e87ea34f343c086b9099315d67b64bfa | https://www.cnbc.com/2009/10/13/oct-13-26-sp-stocks-hit-new-52week-highs.html | Oct. 13: 26 S&P Stocks Hit New 52-Week Highs | Oct. 13: 26 S&P Stocks Hit New 52-Week Highs
Despite an early pullback in the stock market, 26 stocks in the S&P 500 reached new 52-week highs so far in the trading session.
Stocks in the S&P 500 Trading at New 52-Week Highs
Send comments to:bythenumbers@cnbc.com
bythenumbers.cnbc.com
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f5cf1141a38c1ffa7abdb89eb2cc0091 | https://www.cnbc.com/2009/10/13/reinventing-the-fan-the-dyson-way.html | Consumer Nation | Consumer Nation
Sir James Dyson, a pioneer of bagless vacuum cleaners, wants to change the way you look at fans.
The Dyson Air MultiplierSource: Dyson.com
Dyson's new Air Multiplier looks nothing like a conventional fan. Instead, it consists of a "loop" perched on a cylinder base that encloses its motor.
"Getting rid of the blades is really important because the blades cause buffeting on your face," Dyson said, in an interview on CNBC's "Squawk Box," where he demonstrated the appliance.
To watch Sir James Dyson demonstrate how the Air Multiplier works, click here.
The founder and chairman of Dyson said the design of the fan was inspired by work the company did when it created the Airblade hand-dryer. That device blows a thin stream of air at 400 miles per hour, scraping the water off your hands.
The Air Multiplier gets its name because it sucks in air and multiplies air 15-times to expel 119 gallons of air every second.
In addition, to providing more even air flow, the Air Multiplier also is safer than conventional fans because there no risk of anyone accidentally poking their fingers into a blade and getting injured, Dyson said.
VIDEO0:0000:00Dyson & the Future of Innovation
The fan, which retails for about $300 for a 10-inch model and $330 for the 12-inch, will be available next January.
If that price tag seems a little rich, consider this: Dyson claims the fan uses one-fiftieth of the energy used to power an air conditioner.
According to Dyson, consumers are willing to pony up cash when they believe the product is worth the price tag.
Sir James Dyson: Why the World Needs More Engineers
"Our market share has gone up, although many fewer vacuum cleaners are being bought," Dyson said.
"I just think people are more careful in the recession. They look for things that last a long time, and that work well, and are built well, rather than just spending indiscriminately," he said.
More from Consumer Nation:
Can Wal-Mart Get You To Buy Your Shampoo Online?Money to Burn? Drive Away in This PastryPrice Wars in Toyland: Target to Match Wal-Mart's Cuts
Questions? Comments? Email us at consumernation@cnbc.com
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e7e95ef40f835004c5a0f9fb4bd282eb | https://www.cnbc.com/2009/10/13/schork-oil-outlook-is-the-rise-in-ethanol-stocks-sustainable.html | Schork Oil Outlook: Is The Rise in Ethanol Stocks Sustainable? | Schork Oil Outlook: Is The Rise in Ethanol Stocks Sustainable?
Bearish momentum in the corn market brought on by this season’s bumper crop estimates is to a degree, now being offset by implied demand from the transport sector. In other words, ethanol distillers best get while the getting is good.
Month to date, the CBOT corn/ ethanol “crush” is averaging $1.38 per bushel.
The Carbon Challenge - A CNBC Special Report - See Complete Coverage
While that is well, well below what distillers were earning in 2005 and 2006, it is a considerable improvement over the previous two seasons. However, these favorable distilling margins might not last. As the USDA noted, estimated beginning corn stocks were lowered because of increased demand for ethanol use, but also due to “…higher expected use for sweeteners with tight sugar supplies.”
No surprise there, sugar is one of the top 5 or 6 performing contracts (depending on the index, i.e. S&P GSCI, RJ/CRB et al.) year-to-date. On a rolling contract basis, the NYBOT/ICE contract is up 57.9% this year. Estimated beginning sugar stocks in the U.S. for the 2009/10 season are now forecast to come in 26% below the 2008/09 season; hence the bid in the market. Sugar is only the 5/6th best performing contract year to date.
Slideshow: Which Oil Producers Are Making Money?
We are okay with that, supplies are tight. Therefore, the bid in this market is not hard to comprehend. On the other hand, gasoline supplies in the U.S. are at one of the highest levels since World War II, demand is weak and personal consumption expenditures on gasoline are now in an uncomfortable range (>3%)… yet, the NYMEX RBOB contract is outperforming the sugar market, up 79.7%.
That makes RBOB the 3rd best performing commodity market this year. As such, corn appears to be getting squeezed on both ends… and the futures are showing it. Therefore, one has to ask, how long can the current good times for ethanol distillers last in this environment? In the opinion of the analysts at , given the above picture, probably not too much longer.
Read what other CNBC Contributors are saying...
_________________________
Stephen Schork is the Editor of, and has more than 17 years experience in physical commodity and derivatives trading, risk systems modeling and structured commodity finance.
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d0da3735116aeca56292c3eb42ad3df4 | https://www.cnbc.com/2009/10/13/sec-bofa-reach-agreement-over-merrill-disclosure.html | SEC, BofA Reach Agreement over Merrill Disclosure | SEC, BofA Reach Agreement over Merrill Disclosure
The Securities and Exchange Commission has entered an agreement with Bank of America over the disclosure of information in the Merrill Lynch bonuses case, the SEC said Tuesday.
Sharon Lorimer
The agreement is subject to approval by a federal judge and, if approved, would mean a broad waiver of Bank of America's attorney-client privileges, according to an SEC news release. The order would authorize the SEC to share information with other regulators.
"In particular, the order negotiated by the SEC would allow us to assess further details surrounding the Bank's failure to disclose to its shareholders critical information concerning the award of bonuses to Merrill employees, including any relevant information previously withheld based on attorney-client or other privileges," SEC Spokesman John Heine said in the statement.
The order would allow the SEC to investigate details of Bank of America's decisions about whether to disclose impairment of goodwill and other financial results of Merrill Lynch during the fourth quarter of fiscal year 2008 as well as its communications with the Federal Reserve, the Treasury and other federal officials regarding aid.
It will also allow the probing of previously privileged details of Bank of America's consideration on invoking the material adverse change clause in its agreement to merge with Merrill Lynch, the statement said.
Cuomo to Also Get Documents
Bank of America sent a letter to New York Attorney General Andrew Cuomo detailing the points of agreement for the period between September 12, 2008 through January 16, 2009.
"Our intention is to provide you with information and documents that will permit you to understand the contemporaneous communications with counsel during the time period that the events were taking place," the letter said.
"To be clear, we do not intend to waive any privileges or to produce any privileged documents that were created after the events at issue or that relate solely to private litigation against Bank of America or Merrill Lynch and/or their officers and directors," it said.
Bank of America's board voted Friday to waive attorney client privilege and turn over documents requested by Cuomo.
The decision suggests BofA is taking a more conciliatory approach to dealing with Cuomo in the wake of CEO Ken Lewis's decision to step down as CEO at the end of this year.
Separately, a corporate law judge on Monday refused to throw out a lawsuit blaming Lewis and the board of directors for failing shareholders in its purchase of Merrill Lynch.
But Vice Chancellor Leo Strine said the case could be an "exceedingly difficult" one to prove against outside directors, which means all members of the board except Lewis, Dow Jones said.
Last Tuesday a team from Cuomo's office met with BofA's lawyers. Initially the bank resisted the attorney general's request to waive attorney-client privilege and turn over additional documents linked to Bank of America's purchase of Merrill last year.
Cuomo has been investigating whether material information was withheld from shareholders prior to the Merrill deal being finalized. The questions center on what and when Bank of America executives knew about Merrill's mounting losses and the billions in bonuses paid to Merrill employees and why this information wasn't shared with investors.
Some BofA executives deposed by Cuomo said in withholding certain information about the deal, they acted on advice of counsel.
Citing attorney-client privilege the bank had declined to hand over records the attorney general's office believes are critical in determining whether the executives did indeed act on counsel's advice, or did so on their own.
- CNBC reporter Mary Thompson contributed to this report
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587b10ef501c9bfd03f74857c9e3c3ec | https://www.cnbc.com/2009/10/13/supreme-court-will-hear-appeal-of-enrons-skilling.html | Supreme Court Will Hear Appeal of Enron's Skilling | Supreme Court Will Hear Appeal of Enron's Skilling
Three years after he was sentenced in one of the most notorious corporate scandals of all time, former Enron CEO Jeff Skilling will get a hearing before the Supreme Court.
Jeffrey SkillingAP
The high court Tuesday, without comment, agreed to hear Skilling's appeal of his 2006 conviction on two issues: Whether Skilling could be convicted of depriving Enron shareholders of his "honest services" even though he did not try to enrich himself, and whether the case should have been tried outside Enron's home town of Houston because of jury prejudice.
Skilling's lead attorney, Daniel Petrocelli called the decision "a game changer."
"We have been waiting for this for nearly three years," he told CNBC in a telephone interview. Petrocelli said he is looking forward to presenting the case, "and getting Jeff exonerated."
Skilling, who served as Enron CEO from February, 2001 until his abrupt resignation in August of that year, was convicted in 2006 on 19 criminal counts including conspiracy, fraud and insider trading. He is currently serving a 24 year prison sentence at a federal correctional institution in Colorado.
The high court is expected to hear oral arguments in the case by next Spring. It will be one of three cases this term that will help define "honest services" fraud. The others involve publishing magnate Conrad Black and former Alaska state legislator Bruce Weyrauch.
Rogues: Gallery of Financial Crime
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4d0078a1a3272f16da1654bff5bdc5c1 | https://www.cnbc.com/2009/10/13/three-ways-to-save-for-your-childs-future.html | Three Ways to Save for Your Child's Future | Three Ways to Save for Your Child's Future
Opening a savings account in a child's name may seem like a great way to give Junior a head start on a lifetime of thrift. However, it can come back to haunt families, especially when college years roll around.
In fact, choosing the wrong savings vehicle for your children's future cash could cost them thousands in avoidable taxes and missed financial aid.
"In the federal formula that determines how much financial aid a student receives, there are asset protections for money in a parent's name that are not there for money in a student's name," says Robert Helgeson, director of financial aid for Valparaiso University in Indiana.
"If a parent has $100,000 in assets, the government is going to expect them to contribute $6,000 of it to education. If a student has $100,000 in assets, the government will expect $20,000."
Students can have up to $3,000 stashed away in a checking or savings account in their name without losing any financial aid, according to the U.S. Department of Education.
However, for every dollar above that threshold, 20 cents is subtracted -- first from federally funded scholarships and grants the student would have been eligible for, then from federally funded loans.
Because financial aid is determined based on income and assets from the year prior to applying for aid -- in most cases, the student's junior year in high school -- students with large amounts of savings in their name could end up losing a hefty sum of free college cash.
Fortunately, there are several ways for parents to save that will not put their child's future financial aid at risk. The following are three places to safely stash the cash:
529 college plansOne popular method is to save for college through a college savings plan.
Operating similar to IRA and 401(k) plans, 529 college savings plans allow parents to save for a child's education tax-free through an array of investment options. Some age-based investment packages place funds in aggressive investments when the child is young, then automatically switch funds to more stable options as the child approaches college age.
These plans offer major tax advantages, says Craig Parkin, director of institutional client services for TIAA-CREF Tuition Financing, the investment organization that administers Kentucky's state-sponsored college savings plans.
"The gains on the accounts are tax-deferred, and once the funds are used to pay for qualified tuition expenses, parents will never pay taxes on those funds," he says.
Money in these accounts can be used for undergraduate or graduate studies at any accredited two- or four-year campus in the United States. Savings in a 529 plan belong to the parent, not the child.
"A 529 college savings plan is considered a parent's asset because the parent is the account owner and they can change who the beneficiary is," Parkin says.
Kelly Campbell, a Certified Financial Planner and founder of Campbell Wealth Management in Fairfax, Va., cites another advantage of these plans.
"An additional benefit with a 529 plan is that if the child says they don't want to go to college, the parents or whoever owns the account can change the beneficiary," Campbell says. "That way, you know the money will be used for education. They can't just take it and run."
While 529 savings plans offer big advantages, they also come with a few restrictions. According to the U.S. Securities and Exchange Commission Web site, 529 college savings funds can only be pulled out tax-free for qualified education expenses, including tuition, books, fees, supplies, and room and board. Money spent on unqualified expenses is subject to income tax and a 10 percent penalty on earnings.
There are also restrictions on how money in these plans can be invested.
"With 529 plans, (plan holders) don't have a lot of control over their investment options and can only change their plan once a year," says Matthew Havens, a Certified Financial Planner and partner at Global Vision Advisors in Hingham, Mass. "If your investment philosophy doesn't fit into the options they offer, a 529 plan can feel like handcuffs."
Next: Common mistakes people make...
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506d092582fb408ed094aba0651ebe3c | https://www.cnbc.com/2009/10/13/top-fund-managers-4-winning-dow-stocks.html | Top Fund Manager’s 4 Winning Dow Stocks | Top Fund Manager’s 4 Winning Dow Stocks
Tom Forester, portfolio manager of the 5-star Morningstar rated Forester Value Fund, shared his investment strategy and stock picks.
VIDEO0:0000:00Investing in Value
“Largely, companies have done a great job of cutting costs and that’s helped their earnings and I think we’re expecting strong earnings this quarter,” Forester told CNBC.
“The question out there is revenue growth. I think the larger companies will do well or okay, and the small companies will lag on that.”
CNBC Data Pages:
Dow 30 Stocks—In Real Time Where's the US Dollar Today?Track Treasury Prices Here
Forester expects to see more investors shift back into larger companies by year-end.
“We’re in the ‘show me’ stage of the market,” he said. “We’re starting to move some chips from the aggressive side to the neutral side.”
Forester’s Picks:
Microsoft
Hewlett-Packard
Wal-Mart Stores
Travelers
More Market Intelligence:
Start Investing for Inflation: StrategistsExpect 'Very Strong' 3-5% Growth by Year-End: Economist
______________________________CNBC Slideshows:
Twenty Stocks Ready to Pop
______________________________
______________________________ Disclosure:
Forester owns MSFT, HPQ, WMT, TRV indirectly via owning his FVALX fund.
______________________________
Disclaimer
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0fd4e39f5f2e9621d5eb9ee365460560 | https://www.cnbc.com/2009/10/13/web-extra-will-oil-break-above-75.html | Oil prices rose to a seven-week high on Tuesday after OPEC raised its 2010 demand forecast and the dollar weakened. Will it finally break out of its range or will oil stall again like it has in the past?
This content is only available online - you won't find these trades on TV.
VIDEO0:0000:00Fast Money Web Extra
______________________________________________________Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! If you'd prefer to make a comment but not have it published on our website send your message to .Trader disclosure: On Oct. 13th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (BTU), (MSFT), (NUE); Finerman's Firm Is Short (IJR); Finerman's Firm Is Short (MDY); Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (UNG); Finerman's Firm Is Short (USO); Finerman's Firm Is Long Puts & Calls (MDY); Finerman's Firm Owns (BAC), (BAC) Calls, (BAC) Call Spreads, (BAC) Preferred; Finerman Owns (RIG), (PDE); Finerman Owns (BAC), (BAC) Preferred; Finerman's Firm Owns (MSFT), (TGT), (PDE), (BRCM), (WMT), (RIG); Finerman's Firm Owns (WLP) Calls; Finerman's Firm Owns (UNH) Calls; Finerman's Firm And Finerman Own (WFC) Preferred; Finerman's Firm Owns (WLP) Calls; Terranova Owns (JPM), (JOYG), (NOV), (GS); Terranova Is Short (GRMN), (CCL); Terranova Owns Dec. 2009 Gold Futures; Terranova Owns Dec. 2009 Crude Oil Futures; Terranova Owns Dec. 2010 Crude Oil Futures; Terranova Works For (VRTS); Najarian Owns (BRCD) Calls; Najarian Owns (C) Calls; Najarian Owns (DELL) Call Spread; Najarian Owns (INTC), Is Short (INTC) Calls; Najarian Owns (GE) Calls; Najarian Owns (JPM) Calls; Najarian Is Short (JOYG) Calls; Najarian Owns (LAZ) & Short (LAZ) Calls; Najarian Owns (MYL) Puts; Najarian Owns (TEVA); Najarian Owns (YHOO) Call Spread For Zack KarabellKarabell Owns (FCX) Karabell Owns (UTX) Karabell Owns (HON)Karabell Owns (SINA)Karabell Owns (EDU) For Brad HintzHintz owns an Equity Position in (MS) Bernstein Owns (GS) (GS) Has Been A Client of Bernstein In Past 12 Months Bernstein Owns (MS) (MS) Has Been A Client of Bernstein In Past 12 Months
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d32b838d74dc2279e6d9f6a38e97ddbe | https://www.cnbc.com/2009/10/13/you-need-to-own-risk-assets-doll.html | You Need to Own Risk Assets: Doll | You Need to Own Risk Assets: Doll
Risky assets will continue to outperform safer assets and investors should stick to bonds and quality stocks such as Johnson & Johnson, Intel and CSX, instead of Treasurys and cash, Bob Doll, vice chairman and global CIO of equities at BlackRock, told CNBC.
VIDEO0:0000:00Dow Jonesing for 10,000
"Our view is that risk assets will continue to outperform safe assets. That is equities and corporate bonds over Treasurys and cash," Doll said.
The economy is showing signs of recovery, even if growth is less robust than usual after a recession, he said.
"We have to respect those cyclical positives," he said. "You need to own these risk assets, but play the higher quality ones."
- Watch the full interview with Bob Doll above.
Doll thinks that Johnson & Johnson, Intel and CSX all fit the bill and count as "quality" investments.
The US consumer is likely to remain strapped for the next two-to-three years, but investors should respect that fact that the savings rate has improved so quickly, he said.
"The consumer, I like to say, is still in the hospital but definitely out of the intensive care unit," Doll said.
The recent dollar weakness is not the "death knell" that some think it is, but a stable or stronger greenback would be much better, according to Doll.
Even though Doll is in favour of a stronger dollar, he told CNBC it is too early for the Federal Reserve to start raising interest rates.
"We raise rates now, I think we'll have an economic problem. We need a little bit more time I think and a little more evidence of sustainability of economic recovery. But then they've got to get started," he said.
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e3bc01cf09b927a948b469af6a18ce07 | https://www.cnbc.com/2009/10/14/10-stock-picks-from-2-top-investment-strategists.html | 10 Stock Picks from 2 Top Investment Strategists | 10 Stock Picks from 2 Top Investment Strategists
Financials are leading stocks higher as the Dow closed above the psychologically important 10,000 milestone. How much higher can we go from here? Dan Genter, president, CEO and CIO of RNC Genter Capital Management, and Dan Fitzpatrick, president at Stockmarket Mentor, offered their market outlooks.
VIDEO0:0000:00The March to Dow 10k
(See their stock and sector picks, below.)
“It’s hard to paint a better picture,” Genter told CNBC.
“We’re probably going to go higher in the short-term and it looks like we’re certainly going to go higher in the next four quarters.”
Genter said investors should look into buying stocks on any kind of market weakness.
Counterpoint:
Use VIX to Protect Gains — Don't Trust Rally: StrategistOctober 'Crash' Still on the Way: CEO
Fitzpatrick said equities will move higher in the near-term because of investor psychology blending in with price action in stocks.
“Right now, we are in a perfect storm where we’re getting a positive feedback loop in the market—where there’s so much sideline money, cautious money waiting for the big pullback that everyone’s going to buy, and it hasn’t happened,” he said.
“And ultimately, this is going to bleed into the retail behavior, because people feel better when the market’s moving higher even if they don’t have a piece of it.”
Fitzpatrick Likes:
S&P Technology
S&P Financial
S&P Industrials
Teck Resources
Freeport-McMoRan
Goldman Sachs
Bank of America
Wells Fargo
Genter Likes:
IBM
Oracle
Microsoft
Cisco Systems
Intel
CNBC Data Pages:Dow 30 Stocks—In Real Time Oil, Gold, Natural Gas Prices Now Track Treasury Prices Here
______________________________CNBC Slideshows:
America's Biggest Types of Personal Debt
______________________________
______________________________ Disclosures:
No immediate information was available for Fitzpatrick or Genter.
______________________________
Disclaimer
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1961b97805e739c234b038733413228e | https://www.cnbc.com/2009/10/14/a-cnbc-original-cocacola-the-real-story-behind-the-real-thing-will-premiere-november-11th-all-times-are-et.html | A CNBC ORIGINAL, "COCA-COLA: THE REAL STORY BEHIND THE REAL THING" WILL PREMIERE NOVEMBER 11TH (ALL TIMES ARE ET) | A CNBC ORIGINAL, "COCA-COLA: THE REAL STORY BEHIND THE REAL THING" WILL PREMIERE NOVEMBER 11TH (ALL TIMES ARE ET)
A CNBC Original, "COCA-COLA: THE REAL STORY BEHIND THE REAL THING" will premiere on Wednesday, November 11th at 9PM. It will re-air that night at 10PM, 12AM and 1AM.
The show will also repeat on the following dates:
Thursday, November 12th at 8PM
Sunday, November 15th at 10PM
With unprecedented access, CNBC pulls back the curtain on Coca-Cola, the most recognizable brand on the planet. In an original one-hour documentary, "Coca-Cola: The Real Story Behind the Real Thing," reported by CNBC's Melissa Lee, CNBC reveals never-before-seen labs, secret archives and high-tech product testing. Cameras follow Coke's urgent campaign to reinvent itself after years of losing ground to arch-rival Pepsi in the race to develop new, blockbuster beverages. Meet the men and women whose mission it is to put the buzz back in the bottles and see how Coke gets its drinks into the mouths of people in the farthest corners of the globe. From the production line to "Cola Wars," discover the secret that makes Coke pop.About CNBC:CNBC is the recognized world leader in business news, providing real-time financial market coverage and business information to more than 340 million homes worldwide, including more than 95 million households in the United States and Canada. The network's Business Day programming (weekdays from 5:00 a.m.-7:00 p.m. ET) is produced at CNBC's headquarters in Englewood Cliffs, N.J., and also includes reports from CNBC news bureaus worldwide. Additionally, CNBC viewers can manage their individual investment portfolios and gain additional in-depth information from on-air reports by accessing http://www.cnbc.com.Members of the media can receive more information about CNBC and its programming on the NBC Universal Media Village Web site at http://nbcumv.com/cnbc/.
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f4fdd43d86683acce791d31f8ba8bb2f | https://www.cnbc.com/2009/10/14/aig-paid-kitchen-assistant-7700-retention-bonus.html | AIG Paid Kitchen Assistant $7,700 Retention Bonus | AIG Paid Kitchen Assistant $7,700 Retention Bonus
AIG paid retention bonuses totaling more than $168 million to a wide array of employees in its financial products unit, including an assistant in a kitchen, the Financial Times reported Wednesday, citing a government report to be released later in the day.
Aig Headquarters
The report was prepared by Neil Barofsky, the special inspector general for the government’s troubled asset relief program (TARP).
About 400 employees at AIG Financial Products shared more than $168 million between December 2008 and March 2009, after AIG received bailout money from the government, the newspaper reported.
That included a cash retention bonus of $7,700 for a kitchen assistant, $700 for a “file administrator,” according to the FT. Senior executives took home bonuses of up to $4 million.
The financial products unit is scheduled to be awarded another $198 million in retention bonuses next March, but the Treasury Department’s “pay czar” Kenneth Feinberg wants that reduced.
Feinberg has not specified the amount of reduction and it’s unclear whether he can compel AIG to lower the bonuses, Reuters reported.
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7b31ba5cdf3229f8ec555e42c9059c8e | https://www.cnbc.com/2009/10/14/alternative-ideas-for-investors-w-joe-terranova.html | If you want to play like a pro you need to think outside the stocks. Fast Money trader Joe Terranova has some ideas for you.
VIDEO0:0000:00Terranova's Alternative Investments #3
All week long trader Terranova will be making more of his expert advice available to Fast Money fans. Check back every day for the latest insights!Extra Web Extra: Terranova's Alt #3Terranova reveals why every investor should include natural resource producers in their portfolio.
Extra Web Extra: Terranova's Alt #2Terranova looks at REITs and why this seemingly complicated real estate play may actually be a simple way to turn profits.
VIDEO0:0000:00Terranova's Alt Investments #2
Extra Web Extra: Terranova's Alt #1Terranova talks currencies and how they could add some value to your portfolio.
VIDEO0:0000:00Extra Web Extra: Terranova's Alt Investments #1
______________________________________________________Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! If you'd prefer to make a comment but not have it published on our website send your message to .Trader disclosure: On Oct. 13th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (BTU), (MSFT), (NUE); Finerman's Firm Is Short (IJR); Finerman's Firm Is Short (MDY); Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (UNG); Finerman's Firm Is Short (USO); Finerman's Firm Is Long Puts & Calls (MDY); Finerman's Firm Owns (BAC), (BAC) Calls, (BAC) Call Spreads, (BAC) Preferred; Finerman Owns (RIG), (PDE); Finerman Owns (BAC), (BAC) Preferred; Finerman's Firm Owns (MSFT), (TGT), (PDE), (BRCM), (WMT), (RIG); Finerman's Firm Owns (WLP) Calls; Finerman's Firm Owns (UNH) Calls; Finerman's Firm And Finerman Own (WFC) Preferred; Finerman's Firm Owns (WLP) Calls; Terranova Owns (JPM), (JOYG), (NOV), (GS); Terranova Is Short (GRMN), (CCL); Terranova Owns Dec. 2009 Gold Futures; Terranova Owns Dec. 2009 Crude Oil Futures; Terranova Owns Dec. 2010 Crude Oil Futures; Terranova Works For (VRTS); Najarian Owns (BRCD) Calls; Najarian Owns (C) Calls; Najarian Owns (DELL) Call Spread; Najarian Owns (INTC), Is Short (INTC) Calls; Najarian Owns (GE) Calls; Najarian Owns (JPM) Calls; Najarian Is Short (JOYG) Calls; Najarian Owns (LAZ) & Short (LAZ) Calls; Najarian Owns (MYL) Puts; Najarian Owns (TEVA); Najarian Owns (YHOO) Call Spread For Zack KarabellKarabell Owns (FCX) Karabell Owns (UTX) Karabell Owns (HON)Karabell Owns (SINA)Karabell Owns (EDU) For Brad HintzHintz owns an Equity Position in (MS) Bernstein Owns (GS) (GS) Has Been A Client of Bernstein In Past 12 Months Bernstein Owns (MS) For JoeTerranova:Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.Virtus Investment Partners Owns More Than 1% Of (XLY)Virtus Investment Partners Owns More Than 1% Of (CAL)Virtus Investment Partners Owns More Than 1% Of (CLB)Virtus Investment Partners Owns More Than 1% Of (DLR)Virtus Investment Partners Owns More Than 1% Of (EXR)Virtus Investment Partners Owns More Than 1% Of (XLI)Virtus Investment Partners Owns More Than 1% Of (IGE)Virtus Investment Partners Owns More Than 1% Of (XLB)Virtus Investment Partners Owns More Than 1% Of (DBA)Virtus Investment Partners Owns More Than 1% Of (DBV)Virtus Investment Partners Owns More Than 1% Of (UA)
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b5a3a8bacfdbebd42a89656f2547c311 | https://www.cnbc.com/2009/10/14/an-interview-with-sen-john-thune.html | An Interview with Sen. John Thune | An Interview with Sen. John Thune
Last night distinguished South Dakota Sen. John Thune, chairman of the Senate Republican Policy Committee, joined me to discuss the $829 billion Baucus bill just passed by the Senate Finance Committee.
VIDEO0:0000:00Health Care & the Economy
We also talked about the need for a clear TARP exit strategy.
He's got the story right on both.
Questions? Comments, send your emails to: lkudlow@kudlow.com
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40aac37f8db8ac0f291ce06c75b91198 | https://www.cnbc.com/2009/10/14/art-cashin-how-todays-market-is-like-dotcom-bubble.html | Art Cashin: How Today's Market Is Like Dot-Com Bubble | Art Cashin: How Today's Market Is Like Dot-Com Bubble
The stock rally could have legs after a line of better-than-expected third-quarter earnings reports, but Art Cashin, head of floor operations at UBS, said he isn't yet convinced.
VIDEO0:0000:00Trader Talk With Art Cashin
"The banquet looks stupendous, I hear the wine is great," he said. "You guys can party on, but some of us are going to sit on the sideline like wallflowers."
Cashin said he doesn't think the economy is moving as much as data shows, and he's worried there are billions of dollars in excess reserves from people not borrowing.
He added that although it's difficult to compare today's environment with any other time in history, it reminds him of the dot-com bubble, when people refused to believe the markets would go anywhere but up.
More Market Intelligence:
JPMorgan Banking Peers Look Good Now: Equity ProUse VIX to Protect Gains — Don't Trust Rally: Strategist
"I said, 'I've never heard of a tree growing straight to Heaven except in Jack in the Beanstalk and that was a fairy tale,'" he said. "And unfortunately [the bubble] turned out to be that way."
Cashin said he is beginning to see a pattern of component makers such as Intel performing well, while end-use makers like Johnson & Johnson struggle.
______________________________
CNBC Data Pages:
Track Gold and Other Commodities Where's the US Dollar Today?Dow 30 Stocks—In Real Time
______________________________Slideshows:
Twenty Stocks Ready to PopMillion-Dollar Home Price Reductions
______________________________ Companies Which Topped Q3 Expectations:
JPMorgan
JPMorgan Crushes Profit Expectations
Abbott
Abbott Profit Tops Views, Raises Forecast for 2009
PepsiCo
PepsiCo Earnings Beat Expectations; Outlook Affirmed
______________________________
______________________________ Disclosure:
Disclosure information was not available for Cashin or his company.
______________________________
Disclaimer
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90a536d2ad00cfd5217b2c0fa34fc6e0 | https://www.cnbc.com/2009/10/14/art-cashin-what-dow-10000-really-means.html | Art Cashin: What Dow 10,000 Really Means | Art Cashin: What Dow 10,000 Really Means
The Dow topped 10,000 on Wednesday, but Art Cashin, head of floor operations at UBS, said he'll continue to approach the market with caution.
VIDEO0:0000:00Cashin's Trader Talk
"It's nice, it's somewhat joyful, but it's also a reminder that in a buy and hold strategy we haven't gone anywhere in 10 years," he said.
Still, Cashin admitted he's been impressed with the market's rally off its March lows, adding that when he predicted a "massive" runup back in March, he never dreamed it would be this big.
"I started taking money off the table in July," he said. "Everybody's looking for a pullback—maybe that's why it won't come."
______________________________
What Cashin Said Before Dow 10,000:
How Today's Market Is Like Dot-Com BubbleCashin's Warning: Market Is a 'Tainted' Banquet
______________________________
CNBC Data Pages:
Track Gold and Other Commodities Where's the US Dollar Today?Dow 30 Stocks—In Real Time
______________________________Slideshows:
Dow 10,000—Then and NowBiggest Dividend S&P Yields
______________________________ The Dow's Biggest Gainers on Wednesday:
Bank of America
Climbed 4.38 Percent to Close at $18.59
Pfizer
Rose 3.64 Percent to Close at $17.39
Du Pont
Closed 3.6 Percent Higher at $34.54
Caterpillar
Rose 3.32 Percent to Close at $54.49
JPMorgan
Gained 3.29 Percent to Close at $47.16
______________________________
______________________________ Disclosure:
Disclosure information was not available for Cashin or his company.
______________________________
Disclaimer
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8c9a21cc6831a51b05a242463d7ca48c | https://www.cnbc.com/2009/10/14/calpers-prioritizes-profits.html | CalPERS Prioritizes Profits | CalPERS Prioritizes Profits
CalPers - the largest pension fund in the U.S. is recouping losses from the financial fallout with a strategy that's boosted assets by $40 billion since its January low.
VIDEO0:0000:00Calpers Prioritizes Profits
How?
On the Closing Bell, CIO Joe Dear told Maria Bartiromo that equity and fixed income remain key overweights in the pension's portfolio.
Dear said he "still believes alternative investments will work in the long term."
CalPERS assets peaked at $270 billion in 2007, only to fall to around $160 billion in January this year. CalPERS is currently sitting on $22 billion of private equity investments. When asked about distressed assets, Dear told Bartiromo "distressed assets provide a lot of opportunity."
Outside of the investment arena, Dear remains concerned on regulation. Dear told Bartiromo "not enough reform has passed." Dear said investors are forgetting about the financial fallout over the past year with big loopholes remaining in such areas as OTC derivatives. Dear told Bartiromo "individuals need protections as well as institutional investors."
All-in-all, Dear remains positive about the road ahead for the economy and market. Dear said 'cost-cutting, stimulus and super low interest rates have restored confidence."
Donna Burton contributed to this article
.
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The Dow 30 in Real TimeThe CNBC Stock Blog
_____________________________
Questions? Comments? Write toinvestoragenda@cnbc.com
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b193c8406e1636ea1d60ebf15346ff39 | https://www.cnbc.com/2009/10/14/dow-10000-means-absolutely-nothing.html | Dow 10,000 Means 'Absolutely Nothing' | Dow 10,000 Means 'Absolutely Nothing'
While cheers could be heard on the floor of the New York Exchange when the Dow broke the 10,000 mark on Wednesday, Bill Smith, CEO and president at SAM Advisors, said the move did not have much significance.
VIDEO0:4200:42Dow Hitting 10,000 Mark Not Significant
“I really don’t think the Dow 10,000 mark means a great deal unless you are a technician”, said Smith on CNBC's "Squawk Box Asia" Thursday.“I think if you approach the markets on a fundamental basis, it means absolutely nothing," he said.
The Dow Industrial Average gained 1.5 percent to close at 10,015.86, the first time it has closed above 10,000 since last October
JPMorgan
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897f79524c845ef8e327c0ba66e51788 | https://www.cnbc.com/2009/10/14/dow-10k-again.html | Dow 10K Again? | Dow 10K Again?
Close-up of a pen on stock price chart
Dow 10K AGAIN? That’s the big story on Closing Belltoday. So we decided to go into the record books and check out just how many times the Dow actually crossed. Can you guess how many times? No not 10, not 20 but 50 times!!!
Let’s define what we mean by crossing 10,000 (this does not include intraday figures). These are dates in which the Dow closed above 10K after closing below 10K previous day OR a day in which the Dow closed below 10k after closing above 10K the previous day.
So what is the significance of Dow 10,000? We asked our chart expert, Jordan Kotick, Global Head of Technical Analysis at Barclays Capital.
CNBC.com
Q - DJIA 10,000 gets a lot of attention. Is this merited, should we care about this number?
A – Yes, you should care but at the same time, don't lose track of the overall trend. DJIA has been a psychological barrier for the market since it first crossed this threshold in 1999. Since then, it has been a pivot for the market both to the upside and down.
Q - What do you mean by a psychological barrier?
A - All markets have areas where people tend to take profits or fade the move from a trading perspective. At the same time, overcoming these areas tends to be a psychological boost of confidence for the bulls in a trend going higher, for the bears in a trend going lower. New "handles" such as for example, 3.00%, 4.00% for ten-year rates, 1.2000, 1.3000 and 1.4000 for EUR/USD, Gold at 1000 etc, tend to be such pivots. Obviously, DJIA 10,000 falls into this camp.
Q - So does this mean crossing 10,000 is bullish for stocks?
A - It is a positive sign but remember that the primary trend of the market trumps any particular number or threshold. Equities have been rallying since Q4 2008 in some global equity markets, Q1 2009 in many others so the strength of this move likely implies further upside despite any back and forth that may occur around the 10,000 threshold.
Tune into Closing Bellfor full technical market analysis. Send us your questions toinvestoragenda@cnbc.com.
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The Dow 30 in Real TimeThe CNBC Stock BlogCould Dow 10,000 Be Just The Beginning?
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Questions? Comments? Write toinvestoragenda@cnbc.com
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fda34104592d9461061a1aeb2a1c70cf | https://www.cnbc.com/2009/10/14/dow-10k-celebrating-10-years-of-0-return.html | Dow 10K: Celebrating 10 Years of 0% Return | Dow 10K: Celebrating 10 Years of 0% Return
Congratulations investors. The Dow has hit 10,000 on October 14th, 2009. You now have made officially 0 percent return if you invested in this index when the Dow first hit this magical level in 1999.
Time to celebrate for sure!
To be fair, the current markets (and economy) have certainly shown signs of resilience which flies in the face of those who have consistently predicted doom and explosion even when evidence of a rebound became more clear. But does it matter really if the Dow is at 10,000?
Jim Rogers says the Dow could go to 20,000 but it wouldn't matter if the US dollar was worth far less. And if you think about recent trends in US dollar weakness and the growing chorus of echoes suggesting the dollar should be a secondary currency, it does make some sense that symbolic index numbers are a bit meaningless.
Many investors (including myself) think that while Dow and S&P numbers do matter, other indexes may matter more in the future. What about Shanghai 3000/4000/5000 or the Rogers International Commodity Index 3000/4000/5000? Take your pick but the point is this; it's all not about the United States anymore. Globalization isn't going away
We have consistently argued that the United States is not irrelevant and will not be anytime in the near future. Regardless of what the naysayers say, the US economy still makes up a huge part of the overall global growth story.
Sharon Lorimer
So, as markets recover and the resilient US economy shows it's not quite done yet, celebrate small victories like Dow 10,000. And it will be a well-deserved party in the future as well if you are adopting a truly a global investment strategy; one that invests in US markets as well as Europe, Latin America, Asia, and around the globe.
And in case anyone needed a reminder, mid-to long-term time horizons do matter. Six months ago, when the Dow was at 6,500, gloomy pundits weresaying that there was no chance that the market would recover.
And 60 percent upside later, they are now saying there's no chance the market can hold on to gains. We shall see, but the bottom line is short-term guesses are just that: stabs in the financial dark. The longer you hold on to assets with a strategic long-term plan, the better chance you have to win in today's investment environment.
So three cheers for Dow 10,000, While the world economy certainly has not regained full strength it does appear that some normalcy is beginning to emerge. Dow 10,000 is merely a US signpost along a recovering global investment road.
And with volumes of negativity surrounding us every day, why not celebrate Dow 10,000. Small victories matter as well.
Slideshow: Dow 10,000 -- Then & Now
___________________
Michael A. Yoshikami, Ph.D., CFP®, is Founder, President, and Chief Investment Strategist of YCMNET Advisors, Inc., a registered investment advisory firm (www.ycmnet.com). He oversees all investment and research activities of YCMNET. He is a respected lecturer speaking frequently on market issues, tactical asset allocation, and investment strategy. Michael and YCMNET were ranked as one of the top investment 100 advisors in the United States for 2009 by Barrons. He appears regularly on CNBC and CNBC Asia and can be reached directly at m@ycmnet.com.
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e970bb5379cefaf2c456c49841a72ffb | https://www.cnbc.com/2009/10/14/dow-at-11000-to-11500-by-christmas-market-expert.html | Dow at 11,000 to 11,500 by Christmas: Market Expert | Dow at 11,000 to 11,500 by Christmas: Market Expert
The Federal Reserve agreed to slow down the pace of a
$1.25 trillion program to buy mortgage securities, according
to minutes from the FOMC meeting. Clem Chambers, CEO of
ADVFN, and Charles Crane, managing director at Douglass
Winthrop Advisors, offered their views on the Fed meeting
minutes.
VIDEO0:0000:00Reacting to FOMC Minutes
“We’re releveraging, therefore [markets] are
going up,” Chambers told CNBC.
“It’s just about a wall of money and about
money supply. There’s a lot of money supply in there
and it’s popping out in assets because the consumers
aren’t allowed to get their hands on it—so
it’s coming out in other places and coming out in
assets.”
Chambers said the markets will go back and forward through
the current level, but eventually will surge upward by
year-end. “We’re on our way to [Dow]
11,000-11,500 by Christmas time,” he said.
Counterpoint:
Use VIX to
Protect Gains — Don't Trust Rally:
Strategist Art Cashin:
Why Today's Market is Like Dot-Com
Bubble
Crane said the Fed’s minutes were not
surprising—overall.
Bu, he noted, “It is interesting to hear them say
that the risk longer-term on inflation is to the
upside—that’s the first time we’ve heard
that.”
In the near-term, Crane said assets that have inflated the
most in the last several weeks and months will be the first
to go down.
“I’m concerned that
goldis a little bit ahead of itself,
especially in light of the comments we heard from the Fed on
short-term inflation risk,” he said.
CNBC Data Pages:
Gold,
Silver, Platinum, Palladium Prices Where's the
US Dollar Today? Track
Treasury Yields/Prices Here
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CNBC Slideshows:
Dow 10,000:
Then and Now
_____________________________
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CNBC's Companies in the News:
AIG
AIG
Paid Kitchen Assistant $7,700 Retention
Bonus
JPMorgan Chase
JPMorgan Crushes Profit Expectations
Pfizer
Wyeth
Pfizer Wins Approval From FTC to Buy Wyeth
General Electric*
GE Exec: Economic Signals 'Better than Expected'
*GE is the parent company of CNBC and CNBC.com
______________________________
Disclosure:
No immediate information was available for Chambers or
Crane.
______________________________
Disclaimer
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a869f34931765b7abae7c9469fb5032a | https://www.cnbc.com/2009/10/14/email-shows-concerns-over-merrill-deal.html | E-Mail Shows Concerns Over Merrill Deal | E-Mail Shows Concerns Over Merrill Deal
It was Jan. 15, and the government was about to hand Bank of America its second taxpayer lifeline as the bank was drowning in losses from its recent marriage to Merrill Lynch.
Kenneth D. Lewis, the chairman of Bank of America , and other top executives convened a late-afternoon conference call to explain the bank’s latest problems to the board: Not only was the government making the new multibillion-dollar bailout on punishing financial terms, but Merrill’s losses — already thought to be steep — were also far worse than the bleak estimates tallied just weeks earlier.
As Mr. Lewis and the other executives continued their briefing, one board member minced no words in his assessment of the situation.
“Unfortunately it’s screw the shareholders!!” Charles K. Gifford wrote to a fellow director in an e-mail exchange that took place during the call.
“No trail,” Thomas May, that director, reminded him, an apparent reference to the inadvisability of leaving an e-mail thread of their conversation.
The e-mail messages, reviewed by The New York Times, were handed over to the House Committee on Oversight and Government Reform this week as Bank of America opened a collection of documents that it has kept secret about the ill-fated merger. While the e-mail does not show that the bank deliberately kept vital information on the deal from shareholders, it opens a window onto the concerns harbored by several board members over the Merrill deal.
Shortly after Mr. May’s remark about an e-mail trail, Mr. Gifford said his comments were made in “the context of a horrible economy!!! Will effect everyone.”
“Good comeback,” Mr. May replied.
A bank spokesman, Lawrence Di Rita, declined to comment on the e-mail. But he said “we believe the full record in context demonstrates that we acted in good faith and with appropriate disclosure in the Merrill Lynch acquisition.”
The bank, which resisted investigators’ efforts to identify the executives who failed to disclose Merrill’s losses to shareholders, is now planning to send more documents in the next week to Congress, as well as to the attorney general of New York and the Securities and Exchange Commission, which are all investigating the Merrill merger. The documents could also provide fodder for shareholder lawsuits.
“E-mails are often the best trails to what a person is really thinking,” said Mark C. Zauderer, a corporate litigator in New York. “That kind of spur-of-the-moment reaction provides grist for the mill of plaintiffs’ lawyers where issues of honesty and integrity are at issue.”
The deal, forged in the throes of the financial crisis last September, has come under political and regulatory scrutiny, and has prompted an uproar from shareholders who say they might never have approved it had executives disclosed the true extent of Merrill’s ill health, or revealed the hefty bonuses Merrill paid its traders and bankers right before the deal closed.
Many are also angry that Mr. Lewis did not reveal how deeply his own concerns about the deal ran: several weeks after shareholders approved the merger, new assessments of Merrill’s losses so startled Mr. Lewis that he told the government he was thinking of backing out. The government, wanting to avoid a fresh panic in financial markets, urged him to stick with it. And he kept those negotiations a secret.
The bank’s board, however, was kept apprised of many developments in the merger, and the House oversight panel investigating the matter plans to question several of them, said Edolphus Towns, Democrat of New York and chairman of the committee. The documents his committee has seen include e-mail messages between bank directors regretting the deal within days of its announcement, according to a person familiar with the committee’s documents. Also, some directors have already received subpoenas from the New York attorney general, Andrew M. Cuomo.
The January dialogue between Mr. Gifford and Mr. May capped months of conflict that simmered between some board members and the bank’s management since the weekend of Sept. 13, when Mr. Lewis agreed to the deal. Mr. Gifford, who ran FleetBoston Financial before Mr. Lewis bought it in 2004 to enlarge Bank of America’s reach, was the lone board member to argue against the merger, said a person who attended the bank’s board meetings but was not authorized to discuss them.
On that frenzied weekend, as Lehman Brothers came crashing to the ground, Mr. Gifford urged Mr. Lewis to wait a day or two to see if he could pick up Merrill for a lower price to obtain better value for Bank of America shareholders, this person said. Mr. Lewis argued that he could lose a golden opportunity to make the investment bank the crown jewel of his empire if he held off, and he agreed to pay about $50 billion in stock for Merrill.
Merrill’s hefty price tag quickly became sore point for shareholders. When Mr. Lewis and other executives considered backing out of the deal, they turned to federal regulators about a second bailout for the merged company.
Track the Dow 30 Here
Mr. Gifford and Mr. May both live in the Boston area, and have been close for a long time. They were part of the handful of Boston-based directors that clashed with Mr. Lewis in early December over a star executive whom they backed. After learning that Mr. Lewis planned to fire the executive, Brian Moynihan, these directors pressured Mr. Lewis to find him a new job. Mr. Moynihan is now a leading internal candidate to succeed Mr. Lewis, who announced early retirement this month. Mr. Gifford and Mr. May are on the selection committee.
In the January board call that prompted the Boston directors’ e-mail messages, directors learned that the government was charging the bank a lot more for the second bailout than the directors expected. The directors also learned they would have to cut the bank’s common stock dividend to a penny, from 32 cents — something that particularly upset Mr. Gifford because he held half of his own financial assets in company stock and, with other shareholders, had watched the value of that investment decline.
Michael Useem, a corporate governance professor at the Wharton School at the University of Pennsylvania, said the e-mail messages raised as many questions as answers.
Without a transcript of the call, he said, it is difficult to determine if Mr. Gifford’s remarks reference the actions of Mr. Lewis, the government, or other parties.
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b84b01013e2a66f762c5c3987ab135ed | https://www.cnbc.com/2009/10/14/fed-unlikely-to-start-raising-interest-rates-for-years-mishkin.html | Fed Unlikely to Start Raising Interest Rates for Years: Mishkin | Fed Unlikely to Start Raising Interest Rates for Years: Mishkin
A prolonged period of tepid economic growth will negate any need for the Federal Reserve to raise rates well into the future, former central bank governor and Columbia University economics professor Frederic Mishkin told CNBC.
Frederic MishkinCNBC.com
Continued problems with banks and other areas of the economy will keep growth to a minimum for as much as three years, Mishkin said, echoing forecasts of a "new normal" from economists who don't see inflation as a threat.
Click Here to Watch Mishkin Interview
"The most important thing is it looked like we've dodged a bullet. The recession looks like it's over, a sustained recovery is getting into place," Mishkin said in a live interview. "Nonetheless, there are still a lot of problems in the financial sector that are going to take a long time to work out."
Mishkin, who served on the Fed from 2006 to 2008, was a proponent of the central bank setting specific targets for inflation, a stand that Fed Chairman Ben Bernanke also has endorsed. The two men wrote a book on the subject that was published in 2001.
Economists favoring a stronger dollar have been calling for the Fed to raise rates both to strengthen the US currency and fend off inflation that could come from the vast amounts of liquidity the central bank has pumped into the financial system over the past two years.
"We're going to have a tremendous amount of slack in the economy for quite a number of years," he said. "If there's still a lot of slack there's no reason to raise rates. In fact, it would be a big mistake."
The Fed also may have learned a lesson from Japan's central bankers, who raised rates following the nation's so-called "lost decade" of the 1990s.
"They were so anxious to normalize and get rates positive that they raised them in early 2000 and it was a huge mistake and actually led to continuing deflation in Japan," Mishkin said. "The Federal Reserve is not going to make that kind of mistake."
Mishkin acknowledged that an acceleration in growth could change the Fed's perspective but said strong inflation is unlikely.
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e7a86f80316d2e6d1cacf00fe85c1594 | https://www.cnbc.com/2009/10/14/ford-revving-up-fiesta-buzz-online.html | Ford Revving Up Fiesta Buzz Online | Ford Revving Up Fiesta Buzz Online
2011 Ford FiestaSource: Fordvehicles.com
The formula for building momentum and excitement about a new car or truck is pretty well known. The automaker usually releases pictures or clips of a new car to one of the auto enthusiast web sites. Or they'll create a web site for the new vehicle and look for "hand raisers" - people interested in learning more about the new model. Either way, we all know the game and rarely is there a model that breaks through the on-line clutter to create "major" buzz. With that in mind, Ford's latest attempt at generating interest in its new car, the Fiesta, is an interesting experiment in whether word of mouth testimonials will make the average person check out a new car.
The Fiesta is a compact car that has been a huge hit in Europe and has been the focal point of Ford's strategy to crank out smaller, more fuel efficient models for customers in the US. People in the auto industry, or those who have driven a Fiesta in Europe, have long known the pint-size car could be a big winner for Ford. But in a crowded market with strong competitors in the compact segment, Ford knows it will still have to work to make the Fiesta a big seller.
So it's taking its message to the streets. More specifically, having 100 regular people take their message to the streets.
These "Fiesta Agents" include people like Derek "Pretty Boy" Dow from Chicago. Dow is a young, aspiring filmmaker who has been driving, and chronicling his experiences with the Fiesta since last spring. Ford provided Dow and the other agents with a Fiesta and paid for their gas as they went on various "missions" with their cars. There were no restrictions on what the agents could write or say on line about driving the Fiesta. In Derek's case, the Fiesta has been the setting for a series of vignettes he's posted on YouTube.
For Ford, the program has exceeded expectations. It claims recognition of the Fiesta among the general public is 38%, as great as it is for the Edge. It believes there have been 100 million "engagements" on line where people have seen, read, learned more about the Fiesta. In short, Ford believes putting its compact car in the hands of people who will talk it up on line is creating buzz for the Fiesta. Skeptics will say you can't really measure buzz, and of course these Fiesta agents will talk up a car they are essentially driving for free.
Ford Posts Record Q3 China Vehicle Sales
Derek Dow knows there are skeptics, but he also thinks Fiesta is the kind of car that will help Ford win over young buyers. Derek says, "When they (younger drivers) start to appreciate the gas mileage, when they start to get in the car and really see how it rides and how good it is it will change their minds."
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74c2e04de984562ae1a965e640afcc75 | https://www.cnbc.com/2009/10/14/gold-oil-and-cash-2-investment-advisors-strategies.html | Gold, Oil and Cash: 2 Investment Advisors' Strategies | Gold, Oil and Cash: 2 Investment Advisors' Strategies
Should investors continue to pile into equities or should they stop and hold onto their cash instead? James Moffett, chairman of Scout Investment Advisors, and Charles de Vaulx, portfolio manager at IVA Funds, shared their best investment strategies.
“You should put your money to work in cash—nothing wrong with cash,” De Vaulx told CNBC.
“We have found a few things in the past two months among wireless phone companies around the world, but we’ve taken a lot of profits on equities and high-yield bonds in particular.”
De Vaulx said he has also lightened up on gold. “We feel the need to be very cautious after this huge run-up.”
CNBC Data Pages:
Dow 30 Stocks—In Real Time Oil, Gold, Natural Gas Prices Now Where's the US Dollar Today?
“Over the past two months, we have taken a lot of money off the table among cyclical stocks either in Europe or in Japan," De Vaulx said.
"Conversely, we’ve been putting money into more defensive names such as the wireless phone companies and food companies such as Nestle and Sodexho." He added that he’s still “comfortable” with oil unlike most other commodities that have run up too much.
Moffett said he is more optimistic about the market.
“The authorities have opened the monetary and fiscal spigots that’re driving the market and the economy will catch up with it, and so we’re fully invested and we’re comfortable with that,” he said.
More Market Intelligence:
Dow at 11,000 by Year End: Portfolio ManagerMarket Tips: Here Comes the Next Bubble
Moffett said he is overinvested in technology and is adding more weight in raw materials. “We’re way underweighted in financials and we’ve brought that back closer to 'neutral',” he added.
“We like oil—we’ve been adding to raw materials like steel and iron ore and more cyclical plays that we think will work for us,” he said.
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AIG
AIG Kitchen Assistant Cleans Up with $7,700 Bonus
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Ford Posts Record Q3 China Vehicle Sales
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Blackstone CEO: Worst Over, Future Is Brighter
General Electric*
GE Exec: Economic Signals 'Better than Expected'
*GE is the parent company of CNBC and CNBC.com.
______________________________ Disclosures:
No immediate information was available for de Vaulx or Moffett.
Disclaimer
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2e4253c315d40aa8922107b31fd6fe2b | https://www.cnbc.com/2009/10/14/h1n1-shots-are-here-sign-me-up.html | H1N1 Shots Are Here: Sign Me Up | H1N1 Shots Are Here: Sign Me Up
I'm traveling today to a hospital in the nation's heartland where tomorrow the first H1N1 shots will be given.
I'll be doing live reports from there on Thursday when I also plan to get the seasonal flu shot myself. Even though you can get a seasonal and H1N1 shot at the same time (in each arm), I need to wait my turn until after those with high priority get the pandemic vaccine first.
AP
The CDC says the H1N1 shots will be available in limited supply for now, but should be out "in large, large numbers" by the end of this month. So, I'll wait. But rest assured, I plan to get both vaccines—assuming, of course, that I can get my hands on some H1N1 vaccine.
Because the injectable vaccine is being distributed at the moment in dribs and drabs, it was fairly difficult for us to find a place that had some already and was willing to show it off and talk on TV about it.
For now, I'm gonna keep the exact location under wraps because I don't want to tip off any competitors and have a potential media circus on our hands. My producer worked too long and hard to secure this facility.
Sanofi-Aventis and Novartis and a third company based in Australia make the H1N1 shots that the FDA has approved, so far. GlaxoSmithKline is still waiting for regulatory clearance. And Baxter is only selling its vaccines outside the U.S. AstraZeneca makes H1N1 and seasonal FluMist—the vaccine that's sprayed up your nose.
This Friday the CDC is expected to start giving weekly updates on where and how much H1N1 vaccine has been shipped.
I'm curious what the demand will truly turn out to be. Some people are growing concerned about the increasing number of pediatric deaths from H1N1 and may rush to get their kids and themselves vaccinated. Others are afraid of or paranoid about the vaccine.
I hate needles. But I also hate being sick or not feeling well. I'm a big baby when it comes to getting a shot or having blood drawn. But, for what it's worth, I'll be turning my head, closing my eyes and maybe even wincing, too, as I eventually get both flu vaccines.
And that's not an endorsement of anything. It's just my personal choice.
Questions? Comments? Pharma@cnbc.com and follow me on Twitter at mhuckman
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0e570631d33a81e878e163471302729e | https://www.cnbc.com/2009/10/14/highest-yielding-stocks-by-sp-sector.html | Highest Yielding Stocks by S&P Sector | Highest Yielding Stocks by S&P Sector
Following my post earlier this week on the highest yielding stocks in the Dow, here is a deeper look at the dividends of the S&P 500. While the average yield on the Dow is about 2.8%, the average yield on the S&P 500 is now just over 2.4%.
As the market has rallied, the average yield has continued to fall. In July, the average yield of those stocks paying dividends was 2.7%, in June it was just below 3%, in April it was 3.3% and at the market lows in March it was hovering around 4%. As of yesterday's close, the utility sector had the most components paying a dividend while the telecom sector, with only nine S&P components had the highest average yield at 8.8% (see table).
>> Highest Dividends of the Dow
The distribution of dividends has also shifted since the market lows. The number of stocks yielding between 0% and 2% has nearly doubled, going from 106 to 183. There is now only one stock yielding over 10% compared to 12 in March. Note that these numbers will continue to change as companies announce new dividends (or cuts as we saw during the end of 2008 and early 2009) and see their share prices fluctuate as well.
Continue on to the next few pages to see the highest yielding stocks for each of the S&P 500 sectors.
The following tables include S&P components with yields over 3%. Keep in mind, the data reflected is based on trailing dividend payouts and are likely to change. The number one yielding stock on the S&P for example, Frontier Communications , has said that it will cut its dividend once it completes a landline purchase deal with Verizon . For a rank order of the top 15 yielding stocks click here.
Telecom Services: Avg yield of 8.8%
Utilities: Avg yield of 4.8%
S&P components with yields over 3%.
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4124fd7509393b6af8aaef14c832ee08 | https://www.cnbc.com/2009/10/14/jpmorgan-crushes-profit-expectations.html | JPMorgan Crushes Profit Expectations | JPMorgan Crushes Profit Expectations
JPMorgan ’s profit beat expectations in the third quarter, with investment banking operations posting strong gains, the company said Wednesday.
But the company warned that credit costs remained high.
The bank earned 82 cents a share in the third quarter, up from 9 cents a share in the same quarter a year ago. That was much higher than the 52 cents a share analysts surveyed by Thomson predicted.
JPMorgan shares were 3 percent higher in early trading, at $47.08.
Tier 1 common capital at JPMorgan was also strengthened through capital generation during the quarter, up 8.2 percent to $101 billion, the bank said in a statement.
"While we are seeing some initial signs of consumer credit stability, we are not yet certain that this trend will continue," Chairman and CEO Jamie Dimon said in the statement.
"Despite this near-term uncertainty about the path of the economy, our strong capital position and underlying earnings power will enable us to continue to invest in our businesses, creating a lasting franchise for many years to come," he said.
Some analysts expect JPMorgan to be the first bank to raise dividends, possibly as early as this year, but Chief Financial Officer Michael Cavanagh said that "if we are lucky" dividends could rise to 75 cents or $1 a share from next year.
Raising Estimates?
JP Morgan ChaseCNBC.com
The results may prompt analysts to raise their estimates for the company's profit, Ed Najarian, director of bank stock research at ISI Group told "Squawk Box."
"It just looks like a lot of strength pretty much across the board, with a lot of the upside coming from the capital markets business, as expected," Najarian said.
"I think a lot of people will be taking estimates (for the company’s earnings) up today for the balance of this year, as well as for 2010 and 2011," Najarian said. "That certainly should power the stock."
But Najarian will not change his estimates for other banks due to report this week. "We'll wait and see their numbers," he said, adding that JPMorgan was "definitely the leader of the pack in terms of credit-based financials."
The bank's net revenue was $7.5 billion, an increase of 85 percent from last year. Investment banking fees rose 4 percent to $1.7 billion, with equity underwriting fees rising 31 percent, debt underwriting fees up 19 percent and advisory fees falling 33 percent.
Markets revenue was $5 billion, up by $4.2 billion from the same period a year ago.
The provision for credit losses increased to $379 million from $234 million in the prior year, reflecting higher charge-offs of $750 million, the bank's statement said.
Loan Loss Reserves in Focus
Net charge-offs on consumer loans were $7 billion, more than double from the same period the previous year.
VIDEO0:0000:00JPMorgan Conference Call
JPMorgan's nonperforming assets totaled $20.4 billion at September 30, 2009, up from the prior-year level of $9.5 billion.
Some analysts said the results bode well for the rest of financials.
"If people take the view this is what is happening with financials we are talking several hundred points on the FTSE and over 10,000 on the Dow," Mike Lenhoff, chief strategist at Brewin Dolphin, told Reuters.
"JPMorgan's stellar figures, beating expectations, could be the catalyst for further gains, albeit one must recognise that in the background we have Goldman's results to assess tomorrow," said John Murphy, analyst at ODL securities.
JPMorgan is "getting close" to the end of adding to loan loss reserves, Cavanagh said. Earlier on "Squawk Box," Najarian said he was looking for confirmation that the reserves build is over, because this indicates that JP Morgan expects stabilization and also that they will no longer need to cover credit losses themselves.
Get Real-Time Quotes for JPMorganQ3 Earnings Preview: Top Expectations for GrowthMore Earnings Stories
— Reuters contributed to this story
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2eba99c3daabc95430d47ff1bf678e14 | https://www.cnbc.com/2009/10/14/mad-mail-these-stocks-dropped-despite-dow-10000-why.html | Jim: About a week or so ago, you suggested that the Dow was going to go back down to 9,400. I have not seen you mention this again, and you now seem bullish about the market. Have you changed your opinion? Thanks for any information. Go Phillies! --Joe in Philadelphia
Cramer says: “I have been saying that you could get at 3% to 5% pullback at any time, but that you want to buy the pullback … we’ve had a couple of those pullbacks ... what I’ve consistently tried to say is we’re not going to have the big, cataclysmic sell-off, don’t wait for the pullback. I have just been saying, be in, and if you get a pullback buy a little more.”
15 Rules for Playing Defense
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Hey Cramer: The Dow broke 10,000 for the first time this year, yet Consolidated Edison and AT&T both had declines on the same day. Why? They are both solid companies with good yields. Help me out here. Here's to getting even. --Steve
Cramer says: “A lot of the belief of why the market is doing better has to do with the fact the economy’s improving. And therefore, people feel that interest rates have to go up. And both AT&T and Con Ed are about having lower interest rates, not higher, because they’re utilities.”
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I hope your book tour and new book sales are a success! I'll be picking up my copy this weekend. Thanks for the reminder of NICE Systems, as a fan of espionage this one looks so much more exciting than Proctor & Gamble . It's amazing that you can still look so good even in neon yellow polyethylene terephthalate. Pink-ah! Boo-yah! --Lisa in Maryland
Cramer says: “A portfolio should have everything. So let’s not go too nuts with NICE. Have some Procters that have good dividend policies [that] over the long term have been good.”
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Jim:Great piece on the Marcellus Shale and the benefits of horizontal drilling. It seems the supply available to us in this region resulting from this drilling technique would overwhelm demand in the near term and thereby drive down the cost of natural gas. That’s great for consumers, but seemingly bad for investors. How would this affect investors deeply tied to natural gas? --Kevin in Oregon
Cramer says: “The idea is that there is such a surfet of supply that the government would then be able to see that and start making everybody use the fuel, which would then put it in equilibrium, which we believe [on] Mad Money is $5 to $7. But right now coal is defeating natural gas every day of the week.”
Cramer's charitable trust owns Procter & Gamble.
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com
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376ef67d931da1b5b481b7b19df757a6 | https://www.cnbc.com/2009/10/14/mcgraw-hill-to-sell-business-week-to-bloomberg.html | McGraw Hill to Sell Business Week to Bloomberg | McGraw Hill to Sell Business Week to Bloomberg
The much-anticipated deal has been done: McGraw Hill announced Tuesday afternoon that it will sell the 80-year-old weekly magazine to Bloomberg. The terms of the deal, expected to close this year, weren't disclosed, but Business Week itself reports that the cash offer is between $2 million and $5 million and it includes Bloomberg assuming liabilities.
This acquisition is pretty unprecedented for Bloomberg, which has a 28-year history of growing organically rather than buying companies. If the deal goes through as planned, Bloomberg will be the proud owner of content that attracts some 4.8 million weekly readers from 140 countries. The bad news is that the magazine suffered a 30 percent decline in ad sales in the second quarter, far more than the 22 percent drop the magazine industry as a whole suffered that quarter.
National Amusements to Sell Shares of Viacom, CBS
This seems to be part of Bloomberg's broader push into more accessible, consumer-friendly business coverage, a dramatic shift from a company that's built on the business of leasing sophisticated data terminals to Wall Streeters. Tuesday's announcement follows the news earlier this month that Bloomberg and the Washington Post are teaming up to launch a news service focused on business and political news, natural bedfellows. Bloomberg recently added a live feed from the New York Times breaking news to its subscriber service. And the company has invested millions in freshening up its TV channel, making it less number-crunchy and data-driven. Exclusive access to Business Week's content and journalists should help with that.
Alone the magazine is bleeding ad pages and a liability to McGraw Hill. As part of Bloomberg it's a way to reach a new kind of reader. Still, Bloomberg will have to fight the decline in ad pages. But using the magazine as part of a larger strategy, the company probably doesn't care.
Questions? Comments? MediaMoney@cnbc.com
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6053b0ccf1c24827d3720ecf198dd744 | https://www.cnbc.com/2009/10/14/michael-dell-expects-to-see-it-spending-bounce.html | Michael Dell Expects to See IT Spending Bounce | Michael Dell Expects to See IT Spending Bounce
Dell Inc. Chief Executive Michael Dell said the business climate was improving and repeated his expectation for a "powerful" hardware refresh cycle beginning next year.
While noting that there are still obstacles to the recovery, Dell sounded optimistic about the upcoming year as the tech sector makes its way out of a crushing recession that has severely impacted end-demand.
"It's getting a bit better incrementally ... but I think there are still challenges out there," Dell told business executives on Tuesday at a forum in Santa Clara, in the heart of Silicon Valley. "The U.S. is doing a bit better than Europe; Europe's probably six to nine months behind the U.S."
Dell expects companies to begin upgrading aging equipment starting in early 2010 and said the server refresh cycle was already underway and stronger than expected, thanks to Intel's new Nehalem processor.
Roughly 80 percent of Dell's business comes from sales to businesses, institutions, government and education customers. The downturn in spending by those commercial customers has hit the world's No. 2 PC maker harder than it has competitors with more balanced portfolios, such as Hewlett-Packard .
And nearly 60 percent of Dell's revenue comes from PCs. Dell's shipments fell 17 percent in the second quarter, according to industry tracker IDC. Its market share stood at 13.7 percent.
Dell trails HP in global PC rankings and is being pressured from below by fast-rising Acer Inc. , which has made huge market share gains, in part due to netbook sales.
Quest for Margins
Dell and other technology companies have been looking to move further into the IT services business, with its higher margins and recurring revenue streams, and diversify away from lower-margin hardware.
The company has agreed to buy services provider Perot Systems for $3.9 billion in what would be the company's largest acquisition ever. Dell said the move was part of its play to build a different kind of services business.
"Perot Systems is of a sufficient size that gives us a certain scale, but it's also not too big," he said.
Dell is now planning to launch a smartphone with Google's Android mobile software on carrier AT&T's network, a source familiar with that has said. But when asked about how he views the mobile space, Dell said he had made no announcements, but company was looking at it closely.
"I do think there is definitely a phenomenon going on with the Internet in your pocket, and there are new platforms that are emerging," he said. " ... I think you'll see us begin to show up gradually."
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d88d06587238fb76a6ef2ca748ab22ad | https://www.cnbc.com/2009/10/14/my-intel-price-target-now-tech-analyst.html | My Intel Price Target Now: Tech Analyst | My Intel Price Target Now: Tech Analyst
Intel’s quarterly outlook and results shattered expectations on Tuesday afternoon, boosting its shares to a 52-week high and fueling optimism over a tech sector recovery before the crucial holiday season.
VIDEO0:0000:00Intel Hits 52-Week High
Craig Berger, senior technology, media and telecom analyst with FBR Capital Markets, shared his outlook on the microprocessor giant.
“The results are very strong and the earnings power is more substantial than people expected, particularly because of the gross margin results and guidance for fourth quarter,” Berger told CNBC.
“Things are really good at Intel right now and consumer demand in particular seems to be the near-term driver.”
More Market Intelligence:
Big Banks Look Good After JPMorgan Earnings: Equity ProChip Maker Shares to Fall by Friday: Options TraderGE Earnings Preview: Kill or Save Stock Rally?
Berger raised his price target on Intel to $27 from $23, but expressed concern that Microsoft’s new Windows 7 build-ahead may have pulled some fourth quarter PC production into the third quarter.
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______________________________Intel Competes With:
Advanced Micro Devices
Texas Instruments
______________________________ Disclosures:
Berger has investment banking clients who own shares of INTC. FBR Capital Markets acts as a market maker or liquidity provider for INTC.
Disclaimer
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c2071ef527c14073999b3a4f2d19249d | https://www.cnbc.com/2009/10/14/october-crash-still-on-the-way-ceo.html | October 'Crash' Still on the Way: CEO | October 'Crash' Still on the Way: CEO
Back in July, Enzio von Pfeil, chief executive officer of EconomicClock.com, predicted a stock market crash in October. On Wednesday, von Pfeil reiterated his forecast, saying: "It doesn't have to be a calamitous crash. But I do think we're heading towards something. One sees that the market's become a lot more 'toppy'. It's stopped going up and up and up."
Click Here to Watch July 15 Video for von Pfeil's Forecast
"One sees far too many players in the market that perhaps shouldn't even be there," he added.
One reason for a big selloff is likely to be strong downward earnings revisions occurring in the near future, von Pfeil said.
"There's going to be quite a bit of strong downward earnings revisions going forward, especially the outlook for 2010. And that's simply because the economic clock, of which we tell the economic time, suggests that the excess supply of goods (rising unemployment) is here to stay and you can't keep on making profits if unemployment keeps rising," he told CNBC.
This Earnings Season Won't Be as Dazzling
The worst of the earnings results will come out of labor-intensive and consumer-led industries, according to von Pfeil.
"The key earnings surprises will be in those industries which cannot keep on cutting workers," he said. "In other words, the basic materials and the very labor-intensive industries, like the car industry that very much have already gone through their cost-cutting exercises."
The U.S. will have the worst earnings results, closely followed by Europe as problems in the housing sector and consumer sector remain. But von Pfeil warned that Asia will also be affected by the earnings news from the West.
VIDEO0:0000:00Watch Out for an October Crash
"The U.S. will come in for major surprises because you do see that the mortgage problems persist. That means that consumption is going to remain low. That means that U.S. consumer stocks cannot fair very well, particularly at the discretionary end of the stick," von Pfeil said. "(Another) region to do very poorly will be over-taxed Europe where the politicians managed to have taxed away any shred of work incentive."
"It is going to be very much in the West that you see these downward surprises," he said. "But again because of technology, it's the inter-connectedness of markets that is going to make those downward earnings revisions in the U.S. and in Europe, particularly in the consumer sectors ripple through and affect Asian market sentiment."
Von Pfeil predicted a "muted jobless recovery coming through."
China Won't Save Us
Another reason for von Pfeil's bearish prediction is that he has a "feeling that there may be some kind of a knee-jerk policy response in China. Given China's global role, could very well lead to some very severe downward market surprises."
"I do think that the Chinese growth story is a little bit of a tin drum that is understandably made to look very good," he said, adding that he doesn't believe so much in the positive growth numbers and outlook for China as he sees labor costs rising.
"I don't believe that China, with a per capita income that is a fraction of America's, is actually going to pull the world out of recession," he said.
Track Stock Funds, Bond Funds, Money Market Funds and ETFs Here
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e8f679d2c7771cfbb6aed5fa7e82a449 | https://www.cnbc.com/2009/10/14/q-divisions-realworld-counterpart.html | When investors think of spy technology, they probably conjure images of James Bonds’ laser-shooting wristwatch or X-ray eyeglasses. Well, Applied Signal Technology, of course, makes none of that. But the company’s business is no less exciting – or potentially profitable.
15 Rules for Playing Defense
Applied Signal Tech operates in the signals and communications-intelligence business. The company’s products work to detect enemy communications and electronics in the field and detect and infiltrate enemy communications over telco networks. If a bad guy is on his phone, or he was dumb enough to leave it on after his last call, APSG will find him. This market worldwide reaches $3.5 billion to $5 billion a year.
VIDEO0:0000:00Intelligent Investing
Applied Signal, which counts the CIA and NSA as clients, is the best pure play on the industry, Cramer said. APSG is “well positioned” and has “a lot of good contract opportunities coming up,” not the least of which are potential deals with both the Army and the Marines. Plus, the company recently won a five-year, $200 million contract to supply an unnamed customer, believed to be the NSA, with communications intelligence.
Applied Signal in Washington is believed to be the best in the biz, Cramer said, “so there’s no open competition.” And that’s always great for profits.
The stock trades at 18 times 2010 earnings, which makes it appear cheap. But Cramer wanted to be sure, so he invited CEO William Van Vleet onto Mad Money. Watch the video for the full interview.
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com
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9f28beb3817f6e02614d3956d4359df1 | https://www.cnbc.com/2009/10/14/stock-rally-likely-to-continue-but-hedge-your-portfolio-pros.html | Stock Rally Likely to Continue, But Hedge Your Portfolio: Pros | Stock Rally Likely to Continue, But Hedge Your Portfolio: Pros
It took the Dow over a year to get back to 10,000, but the rally that got it there may still not be over.
Dow reaches 10,000
But while stocks may continue to rise, pros suggest that investors start looking for ways to protect their gains if the rally runs out of steam.
Slideshow: Dow 10k, Then and NowPoll: Where Do Stocks Go Now?
Market experts both on trading floors and at portfolio managers gave measured levels of importance to the latest market milestone. At the same time, they say investors shouldn't try to stand in the way of the Wall Street stampede.
"Big, round numbers on indexes or commodities are in fact important and trigger buys as resistance is overcome," says Jordan Kimmel, market strategist at National Securities in New York. "While this is not the first time we've seen Dow 10,000, it's still a very important hurdle to get past, to get through and to leave behind."
The first move past 10,000 on Wednesday literally lasted seconds, but the Dow later closed firmly above that mark. It was the first time in a year that the 30-stock bluechip index passed five figures and marked a return to where it was 10 years ago.
After such a volatile decade, the rugged resistance to 10,000 and the minor pullback afterwards did not go unnoticed on Wall Street. The move, in fact, fed into a mindset that while increasing numbers of investors are moving to net-long positions on the market, they're also getting more aggressive in trying to find protection should the rally begin to falter.
"The way that the bond market is acting right now, we're seeing a lot of money in the last couple of sessions coming out of Treasurys," says Dave Lutz, managing director of trading for Stifel Nicolaus in Baltimore. "If this trend continues we might fuel this right to the moon."
Lutz had felt recently that passing 10,000 might represent a sell opportunity. Now, he's placing more emphasis on finding ways to hedge against long positions if stocks fall from their lofty perch compared to the March lows.
"We're seeing volume very light," he says. "It seems like the market has gotten a little complacent and a little dull. One of the biggest Wall Street adages is you never sell a dull market. As we go over 10,000 I'm going to consider buying protection against positions that we have already on the books."
VIDEO0:0000:00Dow Hits 10,000
One of the more common ways for investors to shield against downside is through the Chicago Board Options Exchange Volatility Index .
Often referred to as Wall Street's "fear gauge," the VIX reflects options activity on the Standard & Poor's 500 and generally falls as stocks go higher. The VIX value reflects how much it costs investors to buy protection; the measure peaked near 90 during the worst of the financial crisis, but a reading in excess of 30 generally reflects high volatility.
That relationship, though, could change, if the VIX buck historical trends and moves in unison as investors get increasingly suspicious about whether the rally can be sustained.
"It makes absolutely all the sense in the world to protect your portfolio at the moment," Paul Britton, CEO and founder of Capstone, said in an interview with CNBC. "No one buys this rally—it's based purely upon technicals, people are underweight equities and you should use volatility and the options instruments to lock in some of the gains that the bulk of the investors have made this year."
Investors are employing a variety of other strategies to combat moves lower.
The choices range from put options that would profit investors by selling if a stock hits targeted lower levels, while others are using covered calls and aggressive stop-loss placements that also limit the moves lower.
But there's also a bullish rage running through the market that has others, such as famed investor Jim Rogers, unwilling to step in front of the Wall Street runaway train.
Rogers said in a recent interview with Reuters that the market is "overdue for a correction" but he was not willing to short either stocks or commodities at this point. Rather, he said that Treasurys are a bubble likely to burst.
The view is shared by those who think that 10,000, rather than being a resistance or resting point for the market, actually could trigger another rally.
"I would anticipate maybe some backing and filling over the next couple of weeks after 10,000 is cleared," Kimmel says. "But I certainly expect 10,000 to become a distant signpost as we go significantly higher."
Slideshow: The World's Biggest Gold Reserves
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5719b849595b0794645e3fd746110b0e | https://www.cnbc.com/2009/10/14/The-Last-Dow-10000-How-the-World-Has-Changed.html | The Last Dow 10,000: How the World Has Changed | The Last Dow 10,000: How the World Has Changed
With the Dow Jones Industrial Average crossing the 10,000 point mark for the first time since 2008, we wanted to take a peek back in time to compare what America was like the very first time the Dow crossed 10,000 mark (March 29th, 1999) to today.What were some of the most cutting-edge products, who was the highest paid athlete, and what were the hottest topics buzzing around the internet? For these and more comparisons, check out the following slideshow!Photo: (left) Henny Ray Abrams | AFP | Getty Images (right) Oliver Quillia for CNBC.com
With the Dow Jones Industrial Average crossing the 10,000 point mark for the first time since 2008, we wanted to take a peek back in time to compare what America was like the very first time the Dow crossed 10,000 mark (March 29th, 1999) to today.What were some of the most cutting-edge products, who was the highest paid athlete, and what were the hottest topics buzzing around the internet? For these and more comparisons, check out the following slideshow!By Paul ToscanoPosted 14 Oct 2009
Friends, Who Wants To Be a Millionaire (Debut)American IdolPhoto:Â (left) NBCÂ (right) F Micelotta | American Idol 2009 | Getty Images
1999: Friends, Who Wants To Be a Millionaire (Debut)2009: American Idol
iBook G3 MacBook AirPhoto: (left) Apple (right) AP
1999: iBook G32009: MacBook Air
Sony CD Walkman Ipod Nano VideoPhoto: (left) APÂ (right) AP
1999: Sony CD Walkman2009: Ipod Nano Video
Sarah Michelle Gellar, according to FHM Magazine* Kate Beckinsale, according to Esquire Magazine*Photo: (left) Getty Images (right) Getty Images
1999: Sarah Michelle Gellar2009: Cheryl ColeSource: FHM Magazine
1999 - Richard Gere (People)2009 - Hugh Jackman (People, 2008)Photo: (left) Getty Images (right) AP
1999: Richard Gere2009: Hugh Jackman (2008)Source: People Magazine
File sharing service Napster debuts in the summer of 1999 (June 1)Twitter has been estimated to be worth $1 billion
1999: File sharing service Napster debuts in the summer of 1999.2009: Twitter has been estimated to be worth as much as $1 billion.
1999 - $5.656 trillion (9/30/1999)2009 - $11.909 trillion (9/30/2009)Photo: AP
1999: $5.656 trillion (9/30/1999)2009: $11.909 trillion (9/30/2009)Source: Treasury Direct
Britney Spears - Baby One More Time Black Eyed Peas - Boom Boom Pow**(left) APÂ (right)Â AP
1999: Britney Spears - Baby One More Time2009: Black Eyed Peas - Boom Boom Pow**Song currently with the most weeks on the top charts while also reaching the #1 spotSource: Billboard
$133,300 $174,100Photo: Real Estate Brokers of Alaska
1999 Q1: $133,3002009 Q2: $174,100Source: National Association of Realtors
Bill Gates - $90 billion Bill Gates - $50 billionPhoto: (left) APÂ (right)Â Getty Images
1999: Bill Gates - $90 billion2009: Bill Gates - $50 billionSource: Forbes
Microsoft (MSFT) - $452.33 billion(3/31/99) ExxonMobil (XOM) - $335.2 billion(10/13/09)Photo: (left) APÂ (right) AP
1999:Microsoft (MSFT) - $452.33 billion(3/31/99)2009:ExxonMobil (XOM) - $335.2 billion(10/13/09)
Nat'l Health Expenditures: $1.265 trillionGDP: $9.125 trillionPercent of GDP: 13.9%Nat'l Health Expenditures: $2.555 trillion (projected)GDP: $14.26 trillion (2008)Percent of GDP: $17.9%Source: US Dept of Health and Human Services // US Census Bureau // BEA.gov
1999:Nat'l Health Expenditures: $1.265 trillionGDP: $9.125 trillionPercent of GDP: 13.9%2009:Nat'l Health Expenditures: $2.555 trillion (projected)GDP: $14.26 trillion (2008)Percent of GDP: $17.9%
1999 - Shaquille O'Neal - 7 years, $120 million2009 - Alex Rodriguez - 10 years, $275 millionPhoto: (left) APÂ (right) Getty Image
1999: Shaquille O'Neal - 7 years, $120 million2009: Alex Rodriguez - 10 years, $275 million
Pokemon, Furby and Furby BabiesDisney Netpal, Wii Sports ResortPhoto: (left) APÂ (right) Toys 'R Us
1999:Pokemon, Furby and Furby Babies2009:Disney Netpal, Wii Sports ResortSource: Retailers
1999 - Chrysler 300M2009 - Nissan GT-RSource: Motor Trend
1999: Chrysler 300M2009: Nissan GT-R
$1.29/gallon $2.52/gallonPhoto: (left) AP (right) AP
Oct 1999: $1.29/gallonOct 2009: $2.52/gallonSource: Energy Information Administration
- Star Wars Episode 1: The Phantom MenaceBox Office Revenues: $924.3 million - Harry Potter and the Half-Blood Prince Box Office Revenues: $927.7 millionSource: Box Office Mojo
1999:Star Wars Episode 1: The Phantom MenaceBox Office Revenues: $924.3 million2009:Harry Potter and the Half-Blood Prince Box Office Revenues: $927.7 million (To Date)
Fiction: The Testament by John GrishamNon-Fiction: Tuesdays with Morrie by Mitch AlbomFiction: The Lost Symbol by Dan BrownNon-Fiction: Common Sense by Glenn BeckPhoto: Amazon.com
1999:Fiction: The Testament by John GrishamNon-Fiction: Tuesdays with Morrie by Mitch Albom2009:Fiction: The Lost Symbol by Dan BrownNon-Fiction: Common Sense by Glenn BeckSource: Publishers Weekly // New York Times
July 1, 1999 - 272,690,813Sept 1 2009 - 307,327,042Photo: Getty Images
July 1, 1999: 272,690,813Sept 1 2009: 307,327,042Source: US Census Bureau
Pokémon Gold and SilverPlatform: Game BoyReleased: 1999Units Sold: Approx. 23 million Wii Fit (w/ Balance Board)Platform: WiiReleased: May 2008Units sold: 2,434,000Photo: (left)Â AP (right) Nintendo
1999:Pokémon Gold and SilverPlatform: Game BoyReleased: 1999Units Sold: Approx. 23 million2009:Wii Fit (w/ Balance Board)Platform: WiiReleased: May 2008Units sold: 2,434,000Source: NPD Group
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91f767572b64bfeca16dfcd862295c74 | https://www.cnbc.com/2009/10/14/thursday-look-ahead-bears-are-sheepish.html | Thursday Look Ahead: Bears Are Sheepish | Thursday Look Ahead: Bears Are Sheepish
The Dow crossed 10,000, and suddenly Wall Street's bears grew quieter.The widely-watched Dow Jones Industrial Average returned to a five-digit number for the first time since Oct. 3, 2008 on the back of a strong earnings report from JPMorgan, a better-than-expected September retail sales report, and a tech rally, fired up by Intel's strong earnings and forecast.
Sharon Lorimer
The Dow rose 144 or 1.5 percent to 10,015, while the S&P 500 climbed 1.8 percent to 1,092, also the highest close since last Oct. 3. Financial stocks jumped 3.4 percent, and tech was up about 1.5 percent.But is the Dow's year high a sign of encouragement or an exit point for investors?
Unlike its last two major trips above 10,000, the move is being met by a sea of skepticism. Yet anecdotally, more traders seem willing to believe that the market can continue in an upward trend for now, drawing strength from corporate earnings. And that’s despite the sluggish economic recovery and growing unemployment. The Dow is up 53 percent since its March low.BlackRock Vice Chairman Robert Doll also says the direction for stocks is higher for now.
"There's a huge wall of worry,” Doll said on CNBC’s “Special Report: Dow 10,000.” “There's so much money on the sidelines, waiting for the pullback. We don't get it, t-the market goes up, and people have to put some money in.""Look, there are a bunch of concerns out there. They are very legitimate, but in the short run, the cyclical positives are overwhelming that,” Doll said. “When you get a JPMorgan, an Intel, a CSX, among others, reporting better-than-expected earnings, guess what? Stocks go up." Look AheadThursday's market will take its guidance from the financials. Wall Street profit machine Goldman Sachs reports earnings ahead of the bell, as does Citigroup , still a participant in the government's trouble asset relief program (TARP). After the bell reports belong to tech. Google , Advanced Micro Devices and IBM all release numbers just after 4 pm New York time.
Slideshow: Dow 10k, Then and NowPoll: Where Do Stocks Go Now?
Closely watched weekly jobless claims are reported at 8:30 am, as is the consumer price index and the Empire State survey of New York manufacturing activity. The Philadelphia Fed survey is released at 10 am."For sure, the stream of economic data will take a back seat for the most part. Google will be intriguing. Goldman Sachs will be better than expected. Citigroup is a wild card," said Art Hogan of Jefferies.
Nokia , Charles Schwab , Safeway , Harley Davidson , Southwest Airlines and Winnebago also report. Hogan also said he believes the stock market will continue to move higher, at least temporarily.
"I think we continue to ramp up through the earnings season," he said. Then when earnings season ends, the challenges will be a lack of catalysts and concern about corporate profits in 2010.Dow HistoryThe first time the Dow closed above 10,000 was March 29, 1999, where it remained until May, 2002. It was a time of optimism. The stock market was full of opportunities and the technology bubble was just getting started.
For Investors:
October 'Crash' Is Still Coming: CEOHow the Dow Compares to World MarketsWhere Jim Rogers Would Invest $1 Million
The second time the Dow crossed back above 10,000 was December, 11, 2003. It was real estate then that was just starting to bubble, pumped up by the Fed's easy ways after the Sept. 11 attacks. The Dow moved back and forth across the 10,000 mark but stayed above that level steadily from Oct. 27, 2004 until Oct. 3, 2008. The highest close ever was 14,164 on Oct. 9, 2007, well after the credit crisis first appeared.Technically, Dow 10,000 is meaningless, but traders say it still has a psychological value as a big round milestone.
"There's a big population that doesn't necessarily focus on this all the time and has been disenchanted with Wall Street. This is a reminder that things have gotten better," Hogan said.Another reminder that things have gotten better was the Wall Street Journal's report Wednesday that Wall Street bonuses are back and bigger than ever. That topic will no doubt be big around Goldman Sachs’ earnings report. The firm is expected to report earnings of $4.20 per share on revenues of $10.9 billion.Markets MayhemAs stocks rose, the dollar took a beating and bonds sold off. Gold was slightly lower, but oil gained 1.4 percent, taking it to $75.18 per barrel, its highest close of the year. The dollar slipped 0.6 against the euro, to a level of $1.4919.Treasurys, meanwhile, saw sellers along the curve.
"We tried to trade higher and the long end had a bit of a bid coming out of the FOMC (minutes) and then it kind of turned around," said Brian Edmonds, head of interest rate trading at Cantor Fitzgerald.Edmonds said the market will be watching claims and CPI, which is expected to be tame. He also said the bond market has seen some swift moves recently. Treasurys traded lower at the end of last week, then higher Tuesday and down again Wednesday. The 10-year was yielding 3.425 percent, up from 3.314 Tuesday."We kind of all thought last week one market had to be wrong, either equities or fixed income ... If you look right now, you say fixed income had it wrong," he said."It pretty much showed that maybe equities were right short term. The earnings were good. That certainly is driving the stock market, and we're (bonds) not being supported by the stock market. That's certainly taken some of the wind out of the sails," he said.
Slideshow: Biggest Divident Yields on the S&P
— Questions? Comments?
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0ab6984a7adf32acaa77a442830ac2ad | https://www.cnbc.com/2009/10/14/use-vix-to-protect-your-portfolio-strategist.html | Use VIX to Protect Your Portfolio: Strategist | Use VIX to Protect Your Portfolio: Strategist
The CBOE Volatility index (VIX), widely considered the best gauge of fear in the market, is currently trading below 23, well off its high near 80 last fall. How can investors use the VIX to benefit their portfolios? Paul Britton, CEO and founder of Capstone, shared his volatility strategy.
VIDEO0:0000:00The Volatility Trade
“It makes absolutely all the sense in the world to protect your portfolio at the moment,” Britton told CNBC.
“No one buys this rally—it’s purely based upon technicals, people are underweight equities and you should use volatility and the options instruments to be able to lock in some of the gains that the bulk of the investors have made this year.”
CNBC Data Pages:
Track the VIX HereDow 30 Stocks—In Real Time Where's the US Dollar Today?
Britton expects the markets to go higher; but unlike in the past, investors will panic more to the upside and not the downside.
“I don’t think the VIX is going to come back down again because people are fearful for the upside,” he said. "Until the end of the year, people are too short equities and it makes all the sense to provide some insurance via" the VIX.
“At the beginning of the year, the investment clock resets and that will be a very interesting time for the volatility markets and the underlying markets as a whole and that’s when you should be looking to protect yourself,” Britton added.
More Market Intelligence:
Dow at 11,000 by Year End: Portfolio ManagerOctober 'Crash' Still on the Way: CEOMarket Tips: Here Comes the Next Bubble
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Goldman Tries to Distract Critics From Its Huge Bonuses
General Electric*
GE Exec: Economic Signals 'Better than Expected'
*GE is the parent company of CNBC and CNBC.com.
______________________________ Disclosures:
No immediate information was available for Britton or his firm.
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Disclaimer
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9fb1e4e2a5a0fa52dc50c2b910ddf967 | https://www.cnbc.com/2009/10/14/when-does-dale-earnhardt-jr-become-unmarketable.html | When Does Dale Earnhardt Jr. Become Unmarketable? | When Does Dale Earnhardt Jr. Become Unmarketable?
How long can an athlete endure a losing streak without it significantly affecting his or her marketability?
The auto racing world has put that question to the test.
Danica Patrick has won just 1 of 81 IRL races (1.23%). But Dale Earnhardt Jr. has Patrick easily beat on that winning percentage. “Little E” has won 1 of the last 129 Sprint Cup races (0.77%) and he’s 0 for the last 51.
Yet, Earnhardt seems to be humming along in the business world. This week, Nationwide announced this week it was renewing its deal with him and we just got the NASCAR.com SuperStore sales rankings and guess what? Earnhardt is in his familiar No. 1 spot. Here’s the list of the Top 10 best-selling drivers on the Web site:
With the exception of maybe Anna Kournikova, there has never been an athlete in the history of sports who has been so popular over such a long period of time with such little success.
Earnhardt, who recently turned 35, is clearly running out of time to live up to his last name. But at least his last name is making a living for him.
Questions? Comments? SportsBiz@cnbc.com
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8bbd7213d6df585f15da24cb9e1658b2 | https://www.cnbc.com/2009/10/14/yahoo-sings-for-its-supper.html | Yahoo Sings For Its Supper | Yahoo Sings For Its Supper
You may have noticed that Yahoo! is trying to get your attention with a new promotional campaign, trying to convince web surfers that Yahoo! is all about Y!ou. Actually I don't care if it's all about me. I just want a search engine that's fast, accurate, and gives me desired results. I like Yahoo's front page, as there is often some story there which piques my interest, but too often with the new Yahoo! my cursor accidentally enlarges something from the left hand menu and I go somewhere I don't want to go. Yes, operator error, but help me out here. It didn't happen before.
Kimberly CaldwellGetty Images
Part of the new promotional campaign includes letting people present their own version of Yahoo's iconic yodel. You can submit yours online, and, to give you some ideas, the company paid professional musicians to give the yodela variety of riffs.
My favorite is "Metal 2".
Today Yahoo! is holding live yodeling auditions in Mumbai, India. Monday the company held them in New York and London. In New York, celebrities like Jewel, LeAnn Rimes, Randy Jackson, and Pete Wentz helped "mentor" would-be yodelers in Times Square. The company donated $10 to charity for every entrant. So does the winner get the official yodeling gig? Well, not really. Instead, the company announced that winning participants may be featured in Yahoo's new ad campaign.
Slideshow: 10 Biggest Tech Blunders in the Last 25 Years
Ok, so you probably don't really have a shot at replacing the current Yahoo! yodel. Maybe because the company would like to avoid a repeat of what happened with the original yodeler? Country music singer Wylie Gustafson says he was paid about $590 to belt out the Yahoo yodel back in 1996 for one commercial. He later sued Yahoo! for $5 million for continuing to use of his voice in various ad campaigns without permission. Sounds like a country song. Both sides later settled.
This time around, many would-be "yodelers" aren't really yodeling, but that's ok.
VIDEO0:0000:00Yahoo Yodelers
It's fun to watch people let loose.
Here's a snippet of some of the people trying out in New York, as Jewel observed that they were sharing "their most prized possession," their yodel.
Some gifts are best not given. As amusing to me as some of the yodels was the reaction of celebrity mentors. Jewel and LeAnn Rimes clearly knew what Yahoo was expecting from them, while Fall Out Boy's Pete Wentz seemed a little uncomfortable. "I can't actually yodel in a real way," he said.
Questions? Comments? Funny Stories? Email
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a5b51ca13434aa7d7aa2cfd1d032c4ea | https://www.cnbc.com/2009/10/14/your-first-move-for-thursday-october-15th.html | Here’s our Fast Money Final Trade. Our gang gives you tomorrow’s best trades, right now.
Tim Seymour suggests longVale on strong data out of China.
Guy Adami recommends longAbbot Labs .
Steve Grasso likes longTimberland because "it's going to be a cold winter."
Pete Najarian says BP is a buy. "You gotta' like gas," he exclaims.
VIDEO0:0000:00Fast Money Final Trades
Click here to see other Final Trade posts.
______________________________________________________Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! Prefer to keep it between us? You can still send questions and comments to .Trader disclosure: On October 14, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (NUE): Grasso Owns (AAPL), (ABK), (ASTM), (BAC), (C), (COST), (CSCO), (PFE), (PRST), (V), (WMT): Seymour Owns (AAPL), (BAC), (BHP), (EEM), (FXI), (INTC), (TTM), (LVS): Pete Najarian Owns (BX) Calls: Pete Najarian Owns (DELL) Call Spread: Pete Najarian Owns (HOG) Nov. Call, Is Short (HOG) Oct. Calls: Pete Najarian Owns (XLF) Calls: Pete Najarian Owns (YHOO) Call Spread: Pete Najarian Owns (LAZ), (LAZ) Puts: Pete Najarian Owns (C) CallsFor Steve GrassoStuart Frankel And/Or Its Partners Own (AIZ)Stuart Frankel And/Or Its Partners Own (CMCSK)Stuart Frankel And/Or Its Partners Own (CUBA)Stuart Frankel And/Or Its Partners Own (GERN)Stuart Frankel And/Or Its Partners Own (HSPO)Stuart Frankel And/Or Its Partners Own (MSFT)Stuart Frankel And/Or Its Partners Own (NWS.A)Stuart Frankel And/Or Its Partners Own (NXST)Stuart Frankel And/Or Its Partners Own (NYX)Stuart Frankel And/Or Its Partners Own (PDE)Stuart Frankel And/Or Its Partners Own (PRST)Stuart Frankel And/Or Its Partners Own (RDC)Stuart Frankel And/Or Its Partners Own (ROK)Stuart Frankel And/Or Its Partners Own (TLM)Stuart Frankel And/Or Its Partners Own (XOM)Stuart Frankel And/Or Its Partners Own (XRX)Stuart Frankel And/Or Its Partners Own (SDS)Stuart Frankel And/Or Its Partners Is Short (QQQQ)Stuart Frankel And/Or Its Partners Is Short (CL)For Jon Najarian:Jon Najarian Owns (GS)Jon Najarian Owns (BAC) PreferredsFor Mark MahaneyCitigroup Global Markets Or Affiliates Owns 1% Or More Of (YHOO), (PCLN), (NFLX), (AKAM)Citigroup Global Markets Or Affiliate Received Non-Investment BankingCompensation From (GOOG), (YHOO), (EXPE) In Past 12 Months(GOOG), (YHOO), (EXPE) Are Or In Past 12 Months Were Clients Of CitigroupGlobal Markets (Non-Investment Banking, Non-Securities Related)(GOOG), (YHOO) Are Or In Past 12 Months Were Clients Of Citigroup Global Markets (Non-Investment-Banking, Securities-Related)Citigroup Global Markets Is A Market Maker In (OPEN), (GOOG), (YHOO), (AMZN), (PCLN), (NFLX), (EXPE), (AKAM)Citigroup Global Markets And/Or Affiliates Has A Significant Financial Interest In Relation To (GOOG), (YHOO), (EXPE)Citigroup Global Markets Or Affiliates Owns 2% Or More Of (YHOO)For Louis NavellierFunds Managed By Navellier Own (IBM)Funds Managed By Navellier Own (VMI)
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7952b0cdf6b754cc8fccaff9d7629769 | https://www.cnbc.com/2009/10/15/10-Curious-Game-to-Movie-Conversions.html | 10 Curious Game-to-Movie Conversions | 10 Curious Game-to-Movie Conversions
There’s a reason Hollywood relies so heavily on the gaming world for film ideas. While the hit to miss ratio skews towards misses, when a game-based film hits, it hits big. "For example, Paramount made over $430 million by having Angelina Jolie shimmy into Lara Croft’s short-shorts in 2001 and 2003. And it made another $1.5 billion from films based on the “Transformers.”But some of the board- and video games (and toys) that studios are tapping for upcoming films are just downright baffling.Photo: Tony Weller | Digital Vision | Getty Images
There’s a reason Hollywood relies so heavily on the gaming world for film ideas. While the hit to miss ratio skews towards misses, when a game-based film hits, it hits big.For example, Paramount made over $430 million by having Angelina Jolie shimmy into Lara Croft’s short-shorts in 2001 and 2003. And it made another $1.5 billion from films based on the “Transformers.”But some of the board- and video games (and toys) that studios are tapping for upcoming films are just downright baffling.By Chris Morris, Special to CNBC.comPosted 15 Oct 2009
Games vs. Toys: The Box Office Battle
As far as plotlines go, this arcade classic from Atari doesn’t have much of one: Shoot space rocks, then shoot some more. Every now and then, you got to shoot a flying saucer. But four studios were vying for the rights to the game. Universal won the battle and has enlisted one of the producers of “Transformers: Revenge of the Fallen” to steer the film. Copies sold: N/APhoto Courtesy: Atari
As far as plotlines go, this arcade classic from Atari doesn’t have much of one: Shoot space rocks, then shoot some more. Every now and then, you got to shoot a flying saucer. But four studios were vying for the rights to the game. Universal won the battle and has enlisted one of the producers of “Transformers: Revenge of the Fallen” to steer the film. Copies sold: N/A
Universal plans to bring the Peppermint Forest and Molasses Swamp to life, though it hasn’t yet set a release date for the film. Things start to make a little more sense when you hear the director of Disney’s “Enchanted” and the writer of "Tropic Thunder" and "Madagascar 2" are on board to help steer the film.Copies sold: N/APhoto Courtesy: Hasbro
Universal plans to bring the Peppermint Forest and Molasses Swamp to life, though it hasn’t yet set a release date for the film. Things start to make a little more sense when you hear the director of Disney’s “Enchanted” and the writer of "Tropic Thunder" and "Madagascar 2" are on board to help steer the film.Copies sold: N/A
Activision-Blizzard’s (ATVI) popular online game has already secured Spider Man’s Sam Raimi to direct and the screenwriter of “Saving Private Ryan” to pen the script. The game has a subscriber base that’s larger than the population of Greece, so there’s a built-in audience– but Warner Bros (TWX) needs to get the story perfect or it could have an ugly backlash on its hands.Copies sold: 12+ millionPhoto Courtesy: Activision
Activision-Blizzard’s (ATVI) popular online game has already secured Spider Man’s Sam Raimi to direct and the screenwriter of “Saving Private Ryan” to pen the script. The game has a subscriber base that’s larger than the population of Greece, so there’s a built-in audience– but Warner Bros (TWX) needs to get the story perfect or it could have an ugly backlash on its hands.Copies sold: 12+ million
This 3D picture viewer from Mattel (MAT) has been around since 1939, hosting everything from film stills to pictures of tourist sites and animals. How it will factor into a film remains a mystery. Dreamworks is exploring the idea, with a story it says will be reminiscent of films such as "The Goonies" and "Young Sherlock Holmes" – not that that’s much help.Units sold: N/A – though over 1.5 billion viewing disks have been producedPhoto Courtesy: Fisher Price
This 3D picture viewer from Mattel (MAT) has been around since 1939, hosting everything from film stills to pictures of tourist sites and animals. How it will factor into a film remains a mystery. Dreamworks is exploring the idea, with a story it says will be reminiscent of films such as "The Goonies" and "Young Sherlock Holmes" – not that that’s much help.Units sold: N/A – though over 1.5 billion viewing disks have been produced
At least “Asteroids” has lasers. Pac Man involves an eternally hungry wedge that’s being chased around by a quartet of ghosts. Crystal Sky Pictures, which is also making films based on the “Castlevania” and “Tekken” franchises, secured financing for this project last year, but hasn’t spoken of it since. Copies sold: N/APhoto Courtesy: AP
At least “Asteroids” has lasers. Pac Man involves an eternally hungry wedge that’s being chased around by a quartet of ghosts. Crystal Sky Pictures, which is also making films based on the “Castlevania” and “Tekken” franchises, secured financing for this project last year, but hasn’t spoken of it since. Copies sold: N/A
When your source material is a gel-filled action figure wearing a Speedo, you can safely assume the ensuing film is going to be a comedy. Due out next April, this Universal project was scripted by the writer of “Bruce Almighty”. It’s not the first time Armstrong has tried to stretch onto the big screen. Disney (DIS) tried to convert the toy in 1998, but gave up. Units sold: N/APhoto Courtesy: Tonka
When your source material is a gel-filled action figure wearing a Speedo, you can safely assume the ensuing film is going to be a comedy. Due out next April, this Universal project was scripted by the writer of “Bruce Almighty”. It’s not the first time Armstrong has tried to stretch onto the big screen. Disney (DIS) tried to convert the toy in 1998, but gave up. Units sold: N/A
Electronic Arts’ (ERTS) multi-genre game was nicknamed “Sim-everything” – taking characters from the single cell stage to conquering the galaxy. The hook of the game was letting players design their own creatures and habitats. Twentieth Century Fox and “Ice Age” director Chris Wedge may have trouble transferring that to the big screen. Copies sold: Over 2 millionPhoto Courtesy: Electronic Arts
Electronic Arts’ (ERTS) multi-genre game was nicknamed “Sim-everything” – taking characters from the single cell stage to conquering the galaxy. The hook of the game was letting players design their own creatures and habitats. Twentieth Century Fox and “Ice Age” director Chris Wedge may have trouble transferring that to the big screen. Copies sold: Over 2 million
Horror producer Platinum Dunes (owned by Michael Bay) plans to transform the sometimes-controversial Hasbro (HAS) game that some people believe can be used to talk with the dead. The company is behind next year’s remake of “Nightmare on Elm Street” so it knows horror, but can it get past the clichés that go with the game to create something that draws audiences?Units sold: N/APhoto Courtesy: Parker Brothers
Horror producer Platinum Dunes (owned by Michael Bay) plans to transform the sometimes-controversial Hasbro (HAS) game that some people believe can be used to talk with the dead. The company is behind next year’s remake of “Nightmare on Elm Street” so it knows horror, but can it get past the clichés that go with the game to create something that draws audiences?Units sold: N/A
Like “Spore,” the appeal of “The Sims” is in customizing your world. The film’s producer has said that having infinite power (as “Sims” players do) will be central to the film’s theme – as will the dangers of wish fulfillment. Twentieth Century Fox will be releasing this one as well.Copies sold: Over 104 millionPhoto Courtesy: EA
Like “Spore,” the appeal of “The Sims” is in customizing your world. The film’s producer has said that having infinite power (as “Sims” players do) will be central to the film’s theme – as will the dangers of wish fulfillment. Twentieth Century Fox will be releasing this one as well.Copies sold: Over 104 million
This might be the easiest game to imagine a big screen adaptation of, given its wartime themes. Peter Berg, director of “Hancock,” will direct the Universal-backed film, with a focus on a five-ship fleet caught in an intense battle. It will hit theaters next summer. Copies sold: over 100 millionPhoto Courtesy: Milton Bradley
This might be the easiest game to imagine a big screen adaptation of, given its wartime themes. Peter Berg, director of “Hancock,” will direct the Universal-backed film, with a focus on a five-ship fleet caught in an intense battle. It will hit theaters next summer. Copies sold: over 100 million
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aa07713122b4b4aa9f83ed30db288725 | https://www.cnbc.com/2009/10/15/41-people-in-four-states-charged-with-mortgage-fraud.html | 41 People in Four States Charged With Mortgage Fraud | 41 People in Four States Charged With Mortgage Fraud
A mortgage fraud crackdown announced Thursday resulted in the arrests of dozens of people, including six lawyers, seven loan officers and three mortgage brokers in four states.
Thirty-one people were arrested in New York, Pennsylvania, Ohio and North Carolina. They were among 41 people charged with engaging in mortgage fraud scams that defrauded lenders out of more than $64 million in home mortgage loans.
Of the 10 other defendants, one was expected to surrender later Thursday, four were previously charged and five remained at large.
Authorities gathering for an afternoon news conference in Manhattan said the crackdown, dubbed "Operation Bad Deeds," was aimed at the failure of gatekeepers in the mortgage industry to act responsibly and legally.
Special Report: Investor's Guide To Real Estate
"Unfortunately, instead of protecting our financial system, in some cases they abused their positions and joined criminal schemes to steal millions of dollars," said Richard H. Neiman, the superintendent of banks for New York State.
U.S. Attorney Preet Bharara said in a statement that he found it "especially alarming" that lawyers, loan officers and mortgage brokers treated their professions as a "license to loot banks and profit from other people's pain." Those charged also included an accountant and a residential property appraiser.
VIDEO0:0000:00Mortgage Fraudsters
Authorities said the arrests resulted from a series of investigations conducted by state and local authorities along with federal prosecutors, the FBI, the New York State Banking Department, federal housing authorities, the U.S. Secret Service and U.S. Postal Service investigators.
Most of the bank fraud, wire fraud and conspiracy charges brought against the defendants carry potential prison terms of 20 to 30 years each.
Also on CNBC.com:
New Filings for Jobless Claims Drop US Foreclosures Continued to Rise in Third Quarter
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ebc7d23cf42496362617b5015423b868 | https://www.cnbc.com/2009/10/15/alternative-ideas-for-investors-w-joe-terranova.html | If you want to play like a pro you need to think outside the stocks. Fast Money trader Joe Terranova has some ideas for you.
All week long trader Terranova will be making more of his expert advice available to Fast Money fans. Check back every day for the latest insights!Extra Web Extra: Terranova's Alt #4Terranova looks at oil and food. Find out why he says both belong in your portfolio for 3 to 5 years.
VIDEO0:0000:00Terranova's Alternative Investments #4
VIDEO0:0000:00Terranova's Alternative Investments #3
Extra Web Extra: Terranova's Alt #3Terranova reveals why every investor should include natural resource producers in their portfolio.
(Turn the page for Terranova's trades on REITs and currencies.)
Extra Web Extra: Terranova's Alt #2Terranova looks at REITs and why this seemingly complicated real estate play may actually be a simple way to turn profits.
VIDEO0:0000:00Terranova's Alt Investments #2
Extra Web Extra: Terranova's Alt #1Terranova talks currencies and how they could add some value to your portfolio.
VIDEO0:0000:00Extra Web Extra: Terranova's Alt Investments #1
______________________________________________________Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! If you'd prefer to make a comment but not have it published on our website send your message to .Trader disclosure: On October 15, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT): Terranova Owns (SUN), (OIH), (HOC), (HES), (GOOG), (IUYG), (OHI), (FTO): Terranova Is Short (GRMN), (CCL): Najarian Owns (BX) Calls; Najarian Owns (DELL) Call Spread; Najarian Owns (GE) Calls; Najarian Owns (GOOG) Nov. Calls, Is Short (GOOG) Oct. Calls; Najarian Owns (HMY) Calls; Najarian Owns (IBM) Nov. Calls, Is Short (IBM) Oct. Calls; Najarian Owns (LAZ), Is Long (LAZ) Puts, Is Short (LAZ) Calls; Najarian Owns (MYL) Calls; Najarian Owns (RIMM) Call Spread; Najarian Owns (STX) Call Spread; Najarian Owns (TEVA); Najarian Owns (YHOO) Call SpreadGE Is The Parent Company Of CNBCNBC Universal Is The Parent Company Of CNBC
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9518118892dd2ff64e76497129ada1b3 | https://www.cnbc.com/2009/10/15/calpers-pension-fund-reviewing-fees-paid-to-manager.html | Calpers Pension Fund Reviewing Fees Paid to Manager | Calpers Pension Fund Reviewing Fees Paid to Manager
The nation's largest pension fund, the California Public Employees' Retirement System, said it is investigating fees paid to an outside manager that directed the fund's investments.
Women and RetirementiStockphoto
Calpers said late Wednesday it is reviewing payments of $50 million over a five-year period to Arvco Financial Ventures, which is headed by former Calpers board member Al Villalobos.
The review comes after Calpers adopted a policy in May to ensure transparency in the fund's investment decisions. When the policy was adopted the Board of Administration told Calpers to request placement agent information from funds that previously received capital. That request led to the information that prompted the investigation.
Both the Securities and Exchange Commission and the California Attorney General's Office are aware of the review, Calpers said. The pension fund, which has about $200 billion in market assets, said it plans to work with the SEC and the attorney general's office as it looks into the situation.
Calpers said independent advisers, including Steptoe & Johnson, will oversee the review to make sure that a "full and fair examination" is performed.
The announcement of the investigation comes on the heels of legislation signed earlier this week by Gov. Arnold Schwarzenegger that mandates all of the state's public pension funds disclose information on placement agent fees.
New York officials have been investigating similar managers that they claim received kickbacks for funneling pension fund investments to certain firms.
Like many pension funds, Calpers was hammered during the recent market downturn. Those losses could force California taxpayers to cover shortfalls in pension payments to retired state workers.
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a802e67fa0b59e135d095d9016051d6b | https://www.cnbc.com/2009/10/15/chartology-10000-may-be-key-dow-technical-level-after-all.html | Some traders have called Dow 10,000 a “garbage number” but others say it could have a great deal of meaning, after all.
Greg Troccoli of Opalesque took a hard look at the patterns and was surprised to see an important trend emerge.What did he discover? Watch the video and see for yourself!
VIDEO0:0000:00Chartology
Then, click here to see more of Troccoli's analysis in an extra Web Extra!
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .Trader disclosure: On October 15, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT): Terranova Owns (SUN), (OIH), (HOC), (HES), (GOOG), (IUYG), (OHI), (FTO): Terranova Is Short (GRMN), (CCL): Najarian Owns (BX) Calls; Najarian Owns (DELL) Call Spread; Najarian Owns (GE) Calls; Najarian Owns (GOOG) Nov. Calls, Is Short (GOOG) Oct. Calls; Najarian Owns (HMY) Calls; Najarian Owns (IBM) Nov. Calls, Is Short (IBM) Oct. Calls; Najarian Owns (LAZ), Is Long (LAZ) Puts, Is Short (LAZ) Calls; Najarian Owns (MYL) Calls; Najarian Owns (RIMM) Call Spread; Najarian Owns (STX) Call Spread; Najarian Owns (TEVA); Najarian Owns (YHOO) Call SpreadGE Is The Parent Company Of CNBCNBC Universal Is The Parent Company Of CNBCCNBC.com with wires
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8c5f927c7bacc33512e87d57bb609ecd | https://www.cnbc.com/2009/10/15/chinas-market-control-extends-to-microchips.html | Xilinx is just the kind of company that Cramer likes right now. Not only is it at the center of a thriving mobile-Internet business, but management pre-announced better-than-expected earnings on Sept. 23 and then blew away those expectations when it reported on Wednesday. The stock’s up a healthy 22% since Cramer’s March 17 recommendation.
15 Rules for Playing Defense
There is a problem, though, at least as far as some Wall Street bears are concerned. Phase three of China’s wireless stimulus rollout is winding down, which Xilinx predicts will hurt profits next quarter. But management is spinning the news, saying that phase four could be bigger than three and the potential revenues haven’t yet been included in the company’s backlog.
So what’s the truth? That’s what Cramer wanted to know, which is why he invited CEO Moshe N. Gavrielov onto Mad Money. Watch the video for the full interview.
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com
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7eeb06b2ba91b4ee45f3030608e12cf4 | https://www.cnbc.com/2009/10/15/consumers-show-signs-of-life-as-prices-stay-low.html | Consumers Show Signs of Life as Prices Stay Low | Consumers Show Signs of Life as Prices Stay Low
Consumers may be slowly regaining their appetite to shop, as the prices they encounter in stores remain low.
One benefit of the recession is that inflation is nowhere to be seen, as consumer prices have barely grown in months. Rising unemployment, stagnant wages and tight credit have restrained consumer demand, making it difficult for retailers to raise prices.
Most economists expect that pattern to continue when the Labor Department on Thursday reports the September Consumer Price Index. Economists forecast that consumer prices rose just 0.2 percent in September, after a 0.4 percent gain in August and a flat reading in July.
In the past year, consumer prices are forecast to have fallen 1.4 percent, according to a survey of Wall Street economists by Thomson Reuters. Excluding the volatile food and energy categories, the "core" CPI is projected to have ticked up 0.1 percent in September and 1.4 percent in the past year.
Credit Card Swipe
Separately, economists believe new claims for jobless benefits likely rose slightly last week to 525,000. First-time claims, a gauge of recent layoffs, fell by more than 30,000 in the prior week to their lowest level since early January. The Labor Department is forecast to report Thursday that the number of people continuing to claim benefits dropped to 6.01 million from 6.04 million.
The reports come as consumers are showing some signs of life. Retail sales fell in September due to a sharp drop in auto sales, according to a government report Wednesday. But excluding autos, sales rose 0.5 percent in September. That was better than analysts expected and followed a 1 percent gain in August.
Auto sales had been inflated in August by the government's Cash for Clunkers program, which provided $4,500 rebates to consumers who traded in older vehicles for newer, more fuel-efficient models.
Consumer demand, which accounts for 70 percent of total economic activity, is being watched closely by economists who worry that any recovery from the recession could stall due to the strong headwinds that households still face.
The two months of gains in retail sales, excluding autos, "are an encouraging sign that consumers' bunker mentality is gradually giving way to more familiar spending patterns," Michael Feroli, U.S. economist at JPMorgan Chase, wrote in a note to clients.
On Wall Street, the better-than-expected retail sales figures and surprisingly strong earnings reports from Intel and JPMorgan Chase pushed the Dow Jones industrials above the 10,000 mark for the first time in a year.
Outside of autos, demand at gasoline stations rose 1.1 percent in September, partially reflecting higher prices. Excluding gas and auto sales, retail sales rose 0.4 percent last month.
Other areas of strength included demand at furniture stores, which jumped 1.4 percent, reflecting the rebound in the housing industry. Sales at general merchandise stores, a category that includes big retailers such as Wal-Mart Stores and Target, rose 0.9 percent. Sales at department stores edged up 0.4 percent.
Shoppers are hungry for markdowns, looking for sales signs at stores, while cashing in on a tax credit for first-time homebuyers and low mortgage rates and home prices.
Analysts believe the overall economy, as measured by the gross domestic product, is growing in the second half of this year at an annual rate of 3 percent or more. But the concern is that the growth rate could slip next year if consumer spending falters.
Economists also worry how the economy will fare once government stimulus efforts fade. According to minutes released Wednesday, Federal Reserve policymakers shared that worry last month.
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64fab2b11c73f0dbb19f1f077eb6c648 | https://www.cnbc.com/2009/10/15/cramer-chips-booming-autos-too.html | Buy Cadence Design Systems, Cramer said during Thursday’s Stop Trading!, as a play on the booming chip industry.
Linear Technology said that increased demand is forcing the company to make new semiconductor equipment, which will require the engineer and design automation software and hardware made by Cadence . This need to generate new supply, Cramer said, is sign that business is going “full bore.”
15 Rules for Playing Defense
“I don’t think people realize the power of the semiconductor cycle,” he said.
Elsewhere in the market, PPG Industries noted a ramp in autos production, and not one linked to the federal Cash for Clunkers program. Cramer urged investor to recognize that there is demand in the pipeline for autos, and said that Johnson Controls was the play on it.
“People should get a little more bullish about that industry,” Cramer said.
Cramer's charitable trust owns Johnson Controls and PPG Industries.
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com
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7a389aa350c600a6932b9d8f1d551b14 | https://www.cnbc.com/2009/10/15/cramers-get-out-call-one-year-later.html | On Oct. 6, 2008, a comment from Cramer sent shockwaves through the market. He stood on the Today show set and urged investors to take profits – all the cash they’d need for the next five years – because the market was on the verge of collapse. Sure enough, the Dow, then at 10,300, plummeted 36% over the next five months.
15 Rules for Playing Defense
But stocks have clawed their way back, the bellwether index climbing from its low of 6,500 in early March to just over 10,000 again on Thursday. Over these seven months, the Nasdaq has jumped 60%, the Dow Jones US Financial Index soared 99% and the DJ US Oil and Gas Index climbed 41%. And these are just the sector averages, not the individual stocks that Cramer’s endorsed, such as Eaton , Nucor , Caterpillar , Freeport-McMoRan and Ingersoll-Rand .
Anyone who followed Cramer’s lead “sidestepped a horrible decline,” he said, and then cashed in on “one of the greatest bull-market rallies in history.”
VIDEO0:0000:00State of the Market
What’s the takeaway? Stay flexible, and never be afraid to manage your own money. (Read Cramer’s newest book, Getting Back to Even, to learn how.) You never would have seen these kinds of gains – or had a chance to recoup your losses – if you dumped your nest egg in a passive index fund, crossed your fingers and hoped for the best.
With the market seemingly back on its feet, investors need an updated playbook. Here are the strategies that Cramer laid out during Thursday’s show:
If you took part in the ride up from Dow 6,500, Cramer recommended taking some profits. Better to lock in the gains while you have them. That doesn’t mean cashing out entirely, though. Compared to Treasurys, corporate bonds, private equity, commercial real estate or gold, he said, “Stocks are still the best game in town.”
For those of you who sat out the market’s return to 10K, don’t worry. There are still plenty of big investing themes in which to make money. Cramer won’t stop talking about the “mobile Internet tsunami” and natural gas, and this week he’s been highlighting the strength in homeland security. Buy these stocks, he said, because he’s expecting “major, long-term moves” in all of them.
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com
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3191988b0ec1b629f4fd0ff7f9c942fd | https://www.cnbc.com/2009/10/15/dow-10000-more-than-meets-the-eye.html | The technicians may tell you ignore Dow 10,000, but if we can’t hold this level, the aftermath may be much worse than you think!That may sound dramatic and the chartists will probably scoff but it’s likely true. That’s because of the psychological impact carried by Dow 10,000.Oh, we know psychology doesn’t go far on Wall Street but it packs a powerful punch on Main Street. “It's a huge deal because this sends a message to the 98 percent of the people that don't watch the market every day," explains Art Hogan of Jefferies.
And that message is… things are getting better.
In fact, that message could be a self fulfilling prophecy. At 10,000 people may start to spend again. Not because of gains they’ve realized in the market, but because they feel more confident they’re not going to lose their job.It’s also a level at which communities resume projects they halted because of the recession – we’re talking things like new ball fields or music rooms.
It’s a level at which people resume charitable giving, or finally go the dentist or a hundred other things.
It could prove compelling to a "whole portion of the population” adds Hogan. Don’t forget average Americans find investing complex and confusing, but Dow 10,000 is something most people can grab onto. It’s easy and friendly.And as a result it’s a level that could bring massive amounts of money back into the market.
Steve Grasso of Stuart Frankel thinks Main Street has probably missed the rally so far. “I expect to see individual investors start dipping a toe, now. I expect the rally to continue.”
And that could generate a virtuous spiral higher and higher. As more people return to the market, stocks go higher, companies create jobs and… well you get the picture.
Like we said above the technicians will scoff but Dow 10,000 could make or break us.What do you think? We want to know!
---------At least one technician didn't scoff. Greg Troccoli of Opalesque took a hard look at the patterns and was surprised to see a meaningful trend emerge. What did he discover? Watch the video and see for yourself!
VIDEO0:0000:00Chartology
Then, click here to see more of Troccoli's analysis in an extra Web Extra!
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .Trader disclosure: On October 15, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT): Terranova Owns (SUN), (OIH), (HOC), (HES), (GOOG), (IUYG), (OHI), (FTO): Terranova Is Short (GRMN), (CCL): Najarian Owns (BX) Calls; Najarian Owns (DELL) Call Spread; Najarian Owns (GE) Calls; Najarian Owns (GOOG) Nov. Calls, Is Short (GOOG) Oct. Calls; Najarian Owns (HMY) Calls; Najarian Owns (IBM) Nov. Calls, Is Short (IBM) Oct. Calls; Najarian Owns (LAZ), Is Long (LAZ) Puts, Is Short (LAZ) Calls; Najarian Owns (MYL) Calls; Najarian Owns (RIMM) Call Spread; Najarian Owns (STX) Call Spread; Najarian Owns (TEVA); Najarian Owns (YHOO) Call SpreadGE Is The Parent Company Of CNBCNBC Universal Is The Parent Company Of CNBCCNBC.com with wires
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90264c3913b21847251f7791e6995690 | https://www.cnbc.com/2009/10/15/dow-hits-10000-as-storm-clouds-gather.html | Dow Hits 10,000 as Storm Clouds Gather | Dow Hits 10,000 as Storm Clouds Gather
Dow Jones 10,000 arrived on Wall Street Wednesdayfor the first time in a year.
It's a milestone of sorts, and it certainly represents a vote for investor confidence in economic recovery.
Blowout profit reports from Intel and JPMorgan helped fuel the day's 145-point gain. So did a retail sales report that excluding Cash for Clunkers was actually quite strong.
Profits are the mother's milk of stocks, business, and the economy. And top-line sales revenues now appear to be bolstering the corporate cost-cutting effort. As long as these earnings keep coming in strong, stocks will keep rising. My hunch is that we'll move back to pre-Lehman levels - to over 11,000 on the Dow and over 1,200 on the S&P. Backed by an easy-money Fed, the economy will probably grow in a mild V-shape of something like 3 to 4 percent for the next year or so.
But storm clouds are gathering.
Slideshow—Dow at 10,000: Then and Now
One of the biggest clouds out there is the sinking dollar. What we’re witnessing right now is a big global shift out of dollars and into commodities. The dollar is quickly losing its reserve status to the yen and the euro. The proof is in the pudding: Earlier today, the greenback notched a new 14-month low against the euro. This is not good.
Meanwhile, in the second quarter ending in June, central banks around the world invested 63 percent of their new cash reserves into euro and yen, and put only 37 percent into dollars. And over the past six months, the greenback has lost 15 percent while gold has climbed nearly $150. If this trend continues, spiking inflation and interest rates will choke off the stock market rally and do serious damage to the economy. It could happen very fast.
No one in the Obama administration or at the Fed seems to care about any of this. In fact, they are probably applauding the lower dollar as a sort of 1970s way of boosting exports and the manufacturing heartland in the Midwest. But the falling dollar is bad news for consumers. It will ultimately cause higher inflation, as signaled by the rising price of gold.
There are also future tax hikes looming out there, as well as the enormous explosion of government spending and debt. All of this is why it's hard for me to be a long-term bull.
Stock Rally Likely to Continue, But Hedge Your Portfolio: Pros
The great market boom between 1982 and 2000 was basically characterized by low marginal tax rates and a strong King Dollar. Unfortunately, the 21st century has witnessed a weak dollar and, more recently, rising tax rates that are coming due in 2011 (if not sooner). In other words, the prosperity-inducing Mundell-Laffer supply-side model is being reversed.
As economist Art Laffer put it to me, we are stealing demand and production from the future. So, even as we get a V-shaped recovery now and into next year, 2011 may finally pay the piper for both low growth and higher inflation.
What we need to be doing is exercising some monetary restraint to save the dollar. The Fed should start moving excess cash from the economy. They should follow Australia’s lead and begin raising their target rate. In addition, the Treasury ought to be buying all these unwanted dollars in the marketplace. And Washington needs to quit their explosive spending and borrowing. It is killing us. Some statutory — or even constitutional — limits should be set.
We also need economic-growth incentives like lower marginal tax rates which would benefit investors, entrepreneurs, and workers. We should be slashing tax rates on large and small businesses across-the-board.
Stocks could have another four to six months left to rally. That would be great news for increasing the wealth of the investor class, and maybe even enhancing the animal spirits a bit. But the policy mix is all wrong right now. Health-care entitlements and taxes punctuate the wrong-way policy mix.
What remains to be seen is whether the Republicans can successfully challenge the Democrats with a true supply-side economic-growth message and job-creating platform. If not, beware of the storm clouds.
Questions? Comments, send your emails to: lkudlow@kudlow.com
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d0002f71cb29e1bd662a0b179b7da78a | https://www.cnbc.com/2009/10/15/financial-system-needs-better-not-more-regulation-mack.html | Financial System Needs Better, Not More, Regulation: Mack | Financial System Needs Better, Not More, Regulation: Mack
The financial system needs more efficient regulation that would happen by streamlining, not expanding, the current mechanisms, Morgan Stanley CEO John Mack told CNBC.
John Mack cnbc.com
Among the ideas Mack said he would endorse include a global manager of systemic risk, an idea related to the notion that institutions such as Morgan were too big to fail during the financial crisis of 2008.
"We have too many different regulators," Mack said in a live interview. "There needs to be a pulling together, a consolidation."
The financial system as a whole is getting stronger, he said, though he added that things are better outside the United States.
"Clearly it's improving. I think one of the reasons people feel so good is the capital market's open again," Mack said. "People feel better, they know the world's not going to collapse. But the real growth is overseas, in the foreign markets. Here in the US we're making progress but it's very slow."
Mack did not directly address the issue of whether compensation is too high for Wall Street executives, saying the focus should be more on whether companies are creating jobs and meeting their obligations to shareholders.
Pay for top managers emerged as a thorny issue during the credit crisis after disclosures were made about multi-million-dollar bonuses doled out at companies that received government bailout funds.
VIDEO0:0000:00John Mack's Last Year
"Wall Street clearly has not done everything right, but we're representing our shareholders and we are making money for them," Mack said. "Enough's enough, and we are hiring people, we are doing our part."
While Mack said he does expect stocks to have some type of pullback, he doubted the market would return to its March lows at the depths of public confidence.
"That was just an overreaction. That was panic," he said. "When we get through this, a year from now we're going to have a stronger economy."
Slideshow: Biggest Dividend Yields on the S&P 500
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fd7cbeb120bdca5a74c7d2c2c4fad230 | https://www.cnbc.com/2009/10/15/finding-profits-in-the-dark.html | The thermal imaging that the Predator used to hunt down Arnold Schwarzenegger and friends in the movie of the same name may have seemed liked science fiction, but soldiers in the field use that very technology. In fact, infrared cameras, night-vision systems and the like comprise a $5.9 billion market worldwide.
15 Rules for Playing Defense
What’s the best way to play it? Cramer likes FLIR Systems , a stock recommended as part of the homeland-security portfolio he’s been highlighting all week.
“I think they’re the best player in the thermal-imaging game,” Cramer said.
VIDEO0:0000:00Profit Surge
FLIR controls 22% of the market, thanks to its role as a low-cost, high-volume supplier that introduces new technologies at better prices than the competition. Since 2005, the number of units shipped by FLIR has jumped a whopping 90%, while costs have dropped 30% per unit. This is the part that Cramer likes the most, the company’s focus on keeping its products cheap. While the average infrared camera runs $3,000, FLIR is trying to build one that costs under $500.
FLIR’s technology is used in everything from surveillance and drug enforcement to special ops and infrastructure protection. And the company retains both public and private clients. Customers include US military bases in Iraq and Afghanistan, as well as New York’s major airports, nuclear facilities and any number of universities, utilities and contractors.
The security and surveillance area grew at almost 50% in 2008, and FLIR owns 40% of the infrastructure-protection market. Given that engineering studies estimate $2.2 trillion in infrastructure work is needed in the US, Cramer said, this is a growth market. But FLIR gets 38% of sales from overseas as well, giving the company the international diversification that Cramer likes.
One red flag is an intellectual-property case brought against the company by Raytheon . But on Sept. 1, the presiding judge dismissed some of the plaintiff’s claims, Cramer said, making a favorable outcome to FLIR much more likely.
The stock’s cheap, trading at 18.8 times earnings with a 19% long-term growth rate. FLIR reports earnings on Oct. 21 and then holds an analyst day on Nov. 2. Management’s been talking up an increase in orders for 2010, so Cramer recommended buying on any dip after the quarter.
“I think that that would give you a good entry point with a solid catalyst still ahead,” he said.
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com
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6a77a3756a3c0069772d2ebc1671a524 | https://www.cnbc.com/2009/10/15/funding-of-new-consumer-agency-cloudy-and-controversial.html | Funding of New Consumer Agency Cloudy And Controversial | Funding of New Consumer Agency Cloudy And Controversial
With a key Congressional committee moving on legislation creating a powerful consumer financial products watchdog, the agency’s vague and unusual funding structure is likely to draw greater scrutiny.
US Capitol Building with cash
“The whole issue of how it gets funded--how it fits into the appropriation process and whether taxpayers pay for it--all has to be worked out,” says veteran banking industry analyst Bert Ely of Ely & Company. “To what extent is it supposed to cover all its costs or produce revenue that exceeds its costs?”
Questions abound about the controversial agency, which was first proposed by the Obama administration in June and is meant to assume some of the existing regulatory responsibilities of the Federal Reserve as well as other entities.
And buried under the financing discussions is the fundamental issue of whether Congress is encroaching on the central bank's independence.
Unlike existing banking regulatory agencies, such as the Office of the Comptroller of the Currency, the CFPA will not be entirely funded by industry fees, known as assessments. It also wouldn't receive supplemental income via the normal Congressional appropriations process.
What’s more, who and what will be paying those assessment fees is still unclear.
The House Financial Services Committee discussion draft of the bill simply states “any person who engages directly or indirectly in a financial activity, in connection with the provision of a consumer financial product or service … or in connection with the provision of a consumer financial product or service, provides a material service….”
That casts a net beyond the typical financial sector.
“The thinking in part is to assess non-bank financial institutions,” said one knowledgeable Congressional source, ahead of the committee's markup Thursday. "Pay-day lenders, mortgage companies.”
Read the CFPA Bill
Mortgage companies are definitely in. Not only are their products specifically mentioned in the bill, but the industry has been vilified for its predatory lending practices, the subprime mortgage meltdown and its contribution to the foreclosure crisis.
Credit unions, say analysts, are very likely out. Credit card companies, given the recently passed credit card law, would presumably be in. But what about insurers?
It gets complicated because five bank holding companies (JPMorgan Chase , Citigroup , Bank of America, Goldman Sachs and Wells Fargo ) now regulated by the Fed are all in the mortgage lending and/or servicing business. Many banks also have credt card operations.
“It becomes a huge issue: What industries, organizations are going to subject to it,” says Ely. “It also becomes very much of a cost-shifting exercise" in that assessment fees by other agencies may either be shared and/or diverted.
Nationally chartered banks, for instance, already pay assessment fees to the federal comptroller to cover safety-and-soundness exams as well as compliance activities. A similar arrangement exists on the state level. So would funding from the comptroller be diverted?
Given the lack of detail at this point—more than usual for massive legislation—it’s impossible to determine how many institutions would be covered, what the assessment rates would be and thus what percentage of the operating funds would be generated from that source.
On top of that, all institutions, apparently, will not be treated equally, which would presumably require additional criteria and metrics.
More Politics & Government
Fees will be “based on the size and complexity” of a covered entity, the draft bill states, but also “its compliance record.”
That sounds punitive, say analysts, and “highly unusual”, according to one former Fed official.
Analysts say an unusually high amount of detail will seemingly be left to the new agency's director.
Fed Piggy Bank
Highly unusual certainly describes the agency’s other source of funding.
The bill states that each year the Fed's “Board of Governors shall transfer funds in an amount equaling 10 percent of the Federal Reserve System’s total system expenses (as reported in the Budget Review of the Board of Governors most recent Annual Report to Congress) to the [CFPA] Director for the purposes of carrying out the authorities granted in this title.”
That 10 percent presumably represents the Fed’s operating costs for supervision and compliance activities of its consumer division, a good part of which entails implementing and enforcing the Community Reinvestment Act, according to people familiar with central bank’s operations. (The new agency will be in charge of the CRA.)
Based on the most recent report, system expenses, excluding the costs of printing and transporting the US currency, totaled $3.37 billion in 2008. Some $3.45 billion was budgeted for 2009.
Ten percent of those levels amounts to $337 million and $345 million, respectively.
Yet, there’s no single line item in the budget review that fits the compliance description, making it difficult to extrapolate, and the Fed’s consumer functions are carried out by both the board and the regional banks, further complicating the issue.
The Fed did not respond to a request to break down its consumer protection functions, staffing levels or operating costs.
“It is pulling ten percent out of the hat,” says veteran economist David Jones, who has written several books about the central bank. “It’s sort of an artificial construct.”
Slideshow: Rogue's Gallery Of Financial Crime
The budget, however, does include the following:
In 2008, the board spent almost $56 million on banking supervision and regulation. Another $20 million went to consumer and community affairs. There were about 270 staff positions.
In the same year, the 12 regional banks in the Federal Reserve System spent $642.2 million on supervision and regulation in 2008. About $714.2 million was budgeted for 2009.
By contrast, the FDIC’s operating budget for 2009 was $2.24 billion, up slightly from the year before, but more than double what it was in 2005.
“The size and cost aren’t clearly defined, leaving both questions open ended,” says Scott Talbott, SVP and head of government affairs for the Financial Services Roundtable, which, like many other business group, strongly opposes the CFPA.
Though the math may be puzzling, the broader role of the Fed in funding the CFPA is troublesome.
“This is the first time we would fund something non-Fed by the Fed. I find this troublesome,” says Mark Calabria of the Cato Institute, who recently worked for Richard Shelby of Alabama, the ranking GOP member of the Senate Banking Committee. “This seems to be a huge transfer of power to an agency that will never have to come back for funding.”
“It’s a way of doing a back-door appropriation,” says Robert Glauber, a former senior Treasury Department and Boston Fed official, who recently stepped down as non-executive interim chairman of Freddie Mac .”
That’s because the Fed’s budget is essentially independent of Congressional oversight and works in a self-funding way. Practically speaking, the central bank derives its income by buying government bonds and notes from the Treasury and collecting the interest like any other investor. The Fed keeps a certain amount of the profit while the rest goes back into general government coffers.
Calabria and others say Congress is being inconsistent, having previously attacked the Fed for the aggressive use of its emergency lending powers under its charter to leverage its balance sheet and provide all kinds of liquidity to individual firms like AIG (AIG ), as well as the overall system, which essentially circumvented Constitutional rules on spending authority. (President Obama is an advocate of the CFPA. )
In the same way, many in Congress were also unhappy about the Treasury Secretary’s unusual authority and discretion in deteriming the allocation of funds under the $700-billion TARP program.
Though most of that money went to bail out Wall Street firms, Congress was somewhat appeased when tens of billions of dollars were redirected to efforts benefiting small business and consumers, such as the Obama administration’s massive foreclosure prevention program.
Glauber, who played a key role in the Bush administration’s reform efforts in the wake of the savings and loan crisis 20 years ago, says the CFPA funding issue is less about a money shuffle than a power grab.
“This goes to the heart of the bigger issue, and that’s the future of the Fed and its independence, ” he says. “When Congress starts allocating the Fed’s profits you take one step closer to Congressional oversight of the Fed.
Slideshow: Biggest Holders Of US Government Debt
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251399fc9b2e93b7ba95fbb07c46504f | https://www.cnbc.com/2009/10/15/games-vs-toys-the-box-office-battle.html | Games vs. Toys: The Box Office Battle | Games vs. Toys: The Box Office Battle
There’s a risk in transforming an active experience into a passive one. Just ask Hollywood.
While the demographic for video games and action movies is basically the same, the track record for films based on games has been a pretty dismal one. For every “Tomb Raider”-sized hit, there are a handful of flops like “BloodRayne.”
So what is it about an amorphic semi-tractor trailer that’s so much more appealing than the monsters of “Doom”?
Often, not surprisingly, it comes down to the quality of the films themselves. The “Transformers” series was backed by Michael Bay, one of Hollywood’s biggest hitmakers, while video game-based films often have directors like Uwe Boll, whose work is so reviled that even loyal fans of the games he adapts boycott his movies.
10 Curious Game-To-Movie Conversions
There have been some hits from the video game world. Angelina Jolie’s two “Tomb Raider” films grossed over $430 million. And the three “Resident Evil” films (a fourth is being filmed now) have brought in roughly $379 million.
Those numbers pale, though, when compared to toy-based films. The “Transformers” franchise has made $1.5 billion for Paramount and Hasbro . And this summer’s “G.I. Joe: The Rise of Cobra” has taken in nearly $300 million alone.
A more typical video game-based film grosses under $15 million. Only a handful have topped $100 million, including “Hitman” and “Max Payne.” (“Doom,” based upon one of the most popular franchises in the video game world, only took in $66 million worldwide).
One of the advantages toys have is they don’t come with a locked-in storyline. For years, children have concocted their own stories when they play with their G.I. Joe or Barbie dolls (plans for her upcoming live-action movie, by the way, were announced last month). So when Hollywood comes up with a new scenario for the characters, it’s not jarring – even to adults who have long left the toys behind.
Video game players, though, have guided the characters through elaborate adventures, which they often view as canon. The character’s voices, looks and mannerisms are tied to the experience. And as they’ve played, they feel they’ve gotten to know the hero. Hollywood is forced to compete with those firmly established impressions.
Taking visual liberties is also easier with a toy-based or board game-based film as well. Hollywood special effects can bring childhood imagination to life. Video games already do that.
Perhaps that’s part of the reason a planned movie based on the “Halo” franchise never failed to materialize.
Universal and Twentieth Century Fox were working with Microsoft to put together a film focusing on the Master Chief’s epic struggle against the Covenant – and had even brought on Peter Jackson, who helmed “The Lord of the Rings” trilogy, to produce. In-fighting among the studios was blamed for the failed effort, but fear of tackling pre-established impressions of the characters and the game’s world may have played a factor as well.
Despite the risks, Hollywood is showing no signs of giving up on video games as source inspiration. Jake Gyllenhaal and Ben Kingsley will star in next year’s “Prince of Persia: The Sands of Time” and an adaptation of the Xbox 360 hit “Gears of War” is slated for 2011.
The studio heads are no fools, though. They’ve also got new installments of “Transformers” and “G.I. Joe” on the boards.
Video Game Slideshows:
What's Hot for 2010?2009's Best Sellers
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135efd35ea93ab5c413d996e2991f194 | https://www.cnbc.com/2009/10/15/goldman-best-firm-citi-best-stock-bove.html | Goldman Best Firm, Citi Best Stock: Bove | Goldman Best Firm, Citi Best Stock: Bove
Goldman Sachs is the best managed company in the financial sector, while Citigroup stock is the cheapest, Rochdale Securities Banking Analyst Richard Bove said Thursday.
Citigroup has the potential to reach $20 a share, and if so the stock can triple in two to three years, Bove told “Squawk Box.”
VIDEO0:0000:00Goldman Beats the Street
“That’s more than Goldman Sachs will give (to investors), although they are a much better company,” he said.
Bove also criticized those investors selling Goldman shares after its third-quarter earnings results. The company easily beat estimates, but the stock fell before hours, with many traders hoping for even better numbers given JPMorgan Chase’s strong capital markets results out Wednesday.
world's Best Banks
Investors were over-enthused about these numbers because of JPMorgan’s numbers, “anybody who is buying this stock based on one quarter’s results should get out of it,” he said.
“I would argue that (Goldman’s earnings are) stronger than JPMorgan’s if you look at the whole company,” with JPMorgan doing badly on the traditional bank side of the business, he said.
“There is no reason not to be buying (Goldman) at this time,” he said.
M&A Boom on the Horizon
The investment banking market that Goldman is serving “is now growing fairly rapidly,” Bove said.
“In 2010 we’re likely to see the biggest explosion in mergers and acquisitions that we’ve ever seen and Goldman will be a main participant in that,” he said.
“The fact is that (Goldman’s third-quarter earnings are) always below the second quarter number because investment banking activity dries up in the summer,” Bove added.
People don’t want to bring stocks to market in the summer season and trading activity cools down because of vacations, he said.
Slideshow: Biggest Dividend S&P 500 Yields
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5ea18563f3bf0191c8e54b90f6734071 | https://www.cnbc.com/2009/10/15/google-editions-sure-to-rev-up-ebook-business.html | "Google Editions" Sure to Rev Up E-Book Business | "Google Editions" Sure to Rev Up E-Book Business
Google is sure to shake up the digital book business with is new platform to sell e-Books. In classic Google-fashion it's becoming a "frenemy" — both a competitor and a new driver of revenue — for the likes of Amazon.com and BarnesandNoble.com. Ahead of its earnings announcement, at the Frankfurt Book Fair, the web giant unveiled details of its upcoming "Google Editions." One key difference about this digital bookstore is that its "editions" will be readable on any device -- phone, laptop, or e-Reader. This is a stark contrast to other digital bookstores, like Amazon.com's, whose books only work on the Kindle.
Inside The Google Guys' Brains
"Google Editions" is set to start selling about half a million books in June 2010. Once consumers arrive at Google's platform, they'll be able to buy books in a couple of different ways: either directly from Google, through a partner retailer like Amazon.com or BarnesandNoble.com, or go straight from the publisher's website. Each of these three options will have different revenue split for the publisher and Google.
The fact that the most popular search engine in the world will make it easier for consumers to find and buy digital books should help publishers like Random House, Simon and Schuster and Harper Collins. So far, it appears digital book sales aren't cannibalizing old-fashioned book sales. And as long as they're additive, the booksellers could use the extra revenue.
Can Wal-Mart Get You To Buy Your Shampoo Online?
What this means for companies like BarnesandNoble.com, Sony , and Amazon, whose Kindle has the top e-reader market share, is a more complicated question. On one hand, the more content that's available for e-books, the more vibrant the platform can be. Barnes and Noble, set to unveil its e-reader within the next week, and its more established rivals need consumers to feel like they'll have virtually unlimited options if they buy one of the gadgets. The concern, I'm sure, is that Google will steal a piece of their business from selling the book downloads.
We'll see if Google drives enough traffic and grows the business enough to offset the revenue from book downloads it's sure to grab. Either way, whenever Google enters a business, it's a testament to the fact that it's one to watch.
Questions? Comments? MediaMoney@cnbc.com
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8bfd3a15325d22e72ac43f68db9dde24 | https://www.cnbc.com/2009/10/15/google-fuels-the-tech-fire.html | Google Fuels the Tech Fire | Google Fuels the Tech Fire
The amazing thing about Google ahead of its earnings tonight is the lack of humility.
Google HeadquartersAP
Maybe it's not such a surprise at a company where hubris typically supplants humility, but you'd think in the current climate on Wall Street where under-promising and over-delivering is rewarded so handsomely, that Google would do its part to keep expectations in check.
Not the case.
CEO Eric Schmidt has made no secret of the ad-spending recovery that Google is tracking. More recently, the splashy announcement with Verizon and Google's Android mobile operating system generated lots of headlines, with Google suggesting dozens of handsets using its software will be out by year's end. Then there was the potential of Android coming to AT&T, first with Ralph de la Vega telling me his company had reviewed the OS, liked it, and would be supporting it; then hours later, rumors that Dell would be introducing its first US smart phone, running Android, available on AT&T some time next year.
Oh, and then there's the ongoing rumors that Google's YouTube was on the verge of finally becoming EBITDA positive.
All these components in the Google story lead me to believe that this company might have finally re-captured its mojo. Its stock certainly seems to reflect it: These shares, before today anyway, seemed to be hitting new 52-week highs daily. And like a forest fire creating its own wind, and therefore its own energy, the higher Google shares climb, the higher Wall Street's expectations become, with several targets now well over $600 a share. Earlier this week, FBR Capital raised its target to $660 from $535.
Mark Mahaney at Citi, one of the Street's most thoughtful analysts on the issue, isn't as optimistic.
He expects $4.25 billion in net revenue and $5.35 a share. Consensus is $4.23 billion and $5.40. While he reiterates his "Buy" on the shares, and $580 target, as well as the long-term outlook as "attractive," he says the Q3 fundamentals remain mixed. That's mostly because Q2 was so problematic for Google. If conventional wisdom suggests Q2 was the trough, then Q3 should show modest recovery and the outlook remains positive because capex and personnel spending is finally under control, paid click growth is stable, and mobile momentum is building, he says.
"Google Editions" Sure to Rev Up E-Book Business
There were also concerns that Google would face increased competition from the likes of Microsoft and Yahoo , now that the two had finally signed their collaborative deal. While Bing did well its first few months, there are signs that its penetration might have begun to slow. Microsoft CEO Steve Ballmer has always maintained that its search engine Bing was a "long term story" and that we shouldn't be focused on month-to-month market gains, but I think there was some optimism that Microsoft and Yahoo working together would lead to more of a threat to Google. And it simply hasn't yet materialized.
Just yesterday, comScore reported that Google continues to blow away the competition as, leading US core web search rankings in July, August and September, hosting 9 billion searches, seeing a slight increase in its market share from July to August, but flat from August to September.
Slideshow: 10 Biggest Tech Blunders in the Last 25 Years
Some other issues to watch for on the conference call: What Eric Schmidt has to say about growth in the mobile sector, any commentary about ad spending momentum, whether he addresses his decision to leave Apple's board because of the ongoing investigation by the FTC, and a similar decision by former Genentech CEO Arthur Levinson to leave Google's board in favor of Apple's . Google is facing increased government scrutiny amid increasing tensions between the company and Apple as the two find themselves in more direct competition in things like software, operating systems and mobile. Anything on any of those fronts will be newsworthy.
This should be an interesting report. Intel started this tech rally big time earlier this week and helped drive the Dow over 10,000. Google and IBM could go a long way toward keeping the Dow above that level.
Questions? Comments? TechCheck@cnbc.com
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1f09bb409c58b08aef92023814b33a7d | https://www.cnbc.com/2009/10/15/google-ibm-to-yield-good-results-analysts.html | Google, IBM to Yield Good Results: Analysts | Google, IBM to Yield Good Results: Analysts
Investors are preparing for this afternoon when tech titans Google and IBM will report their corporate earnings. What is the best investment play in the technology sector? Robert Cihra, tech hardward analyst at Caris & Company and Benjamin Schacter, Internet analyst at Broadpoint AmTech shared their views.
VIDEO0:0000:00Investing in Tech
“We really like Google and we think the continued momentum is going to be strong,” Schacter told CNBC. “The macro recovery is going to start first at Google and the online advertising companies.”
Schacter said he has a price target of about $575 on Google.
CNBC Data Pages:
Dow 30 Stocks—In Real Time Track the DJ Technology Index HereComplete Earnings Coverage
“As long as numbers continue to rise, which it seems they will—as long as margins are going in the right direction, cost containment is there and topline continues to grow—you should see the stock continue to rise,” he said.
Cihra said he expects a "good report" from IBM .
“While their revenues will be down year over year, that rate of decline is going to start getting better and that’s going to show that enterprise spending, while still weak, is getting better,” he said.
“[IBM’s] upside is coming more from its [own] ability to improve margins and so while I’m looking for revenues to be down single digits, I’m looking for EPS to be up 18 percent of so.”
Experts Speak on Earnings:
My Intel Price Target Now: Tech AnalystWhy JPMorgan Peers Look Good Now: Equity ProIBM and Intel Earnings 'Enormously Important': Strategist
Cihra expects that the technology sector, which has led the markets so far this year, will continue to be the leader throughout the year.
“Long term, international is going to be the driver for tech,” he said. “But some of the best near-term signs of improvement have been coming from the U.S.”
Cihra's Picks:
IBM
Apple
Research in Motion
Seagate Technology
Western Digital
______________________________CNBC Slideshows:
Top Commercial Products Launched by NASA
______________________________
______________________________ Disclosures:
No immediate information was available for Cihra or Schacter.
Disclaimer
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b0925d26f5b5b00d2c3003f2bfd59071 | https://www.cnbc.com/2009/10/15/google-to-launch-google-editions-platform.html | Google To Launch Google Editions Platform | Google To Launch Google Editions Platform
Googleis launching a new service for booksellers next year called Google Editions, which will let readers buy books and read them anywhere on gadgets ranging from cell phones to possibly e-book devices.
Google HeadquartersAP
It's the first foray into charging for books for the Mountain View, California-based company, which began its Google Books program in 2004.
Tom Turvey, head of Google Book Search's publisher partnership program, said the price per book would be set by their publishers and would start with between 400,000 to 600,000 books next year.
"It will be a browser-based access," Turvey said Thursday at the 61st Frankfurt Book Fair. "The way the e-book market will evolve is by accessing the book from anywhere, from an access point of view and also from a geographical point of view."
Google will collect 55 percent of the profits, Turvey said, giving a "vast majority" of that to retailers, and the rest will go to the publisher.
"Google Editions allows retail partners to sell their books, especially those who haven't invested in a digital platform," he said. "We expect the majority (of customers) will go to retail partners not to Google. We are a wholesaler, a book distributor."
He added that Google Editions will be the first time the company will try to monetize their books project. The transactions must be simple he said, and one possibility will be using the already existing transaction platform Google Checkout.
Electronic books are gaining in popularity, led in part by devices like Amazon.com Inc.'s Kindle and rival Sony's new Reader Pocket Edition.
In 2008, U.S. e-book sales totaled $113 million — up 68 percent from 2007 but still a fraction of the estimated $24.3 billion spent on all books, according to the Association of American Publishers.
Sony's eBook Store includes more than 100,000 books, as well as a million free public-domain books available from Google Inc. through its Google Books project. The Kindle Store currently has more than 330,000 available titles.
The Kindle can only download books from Amazon's store, while Sony's Readers can display texts sold in the "epub" format _ an open standard supported by the International Digital Publishing Forum that numerous publishers use to make e-books.
Also Thursday, a Google executive responded Thursday to criticism from the German government, saying that there had been a "misunderstanding" regarding book copyrights as the firm works to make books available online.
"I think there is a lot of misunderstanding regarding Google Books," said David Drummond, Google's chief legal officer. "We never scan copyright protected books in Europe. We recognize that in each country the ultimate design could be different. People think we scan copyright protected books. That's false."
German Chancellor Angela Merkel said this weekend in her weekly video podcast that the Internet carries "significant dangers" for the rights of authors.
"For the (German) government, it is clear that copyright also must find its place on the Internet," she said. "That is why we reject books simply being scanned in without any copyright protection, as is being done by Google."
She added that the government will work to protect authors' rights in Germany.
Drummond said at the press conference that Google Books is using the U.S. "Fair-Use" principle as its guide in the states. A U.S. federal judge set a Nov. 9 deadline for submission of a revisedagreement in the battle over Google's effort to attain digital rights to millions of out-of-print books. The U.S. Justice Department filed papers last month, saying the $125 million agreement "raises significant legal concerns" and was likely to conclude that it breaks federal antitrust law.
Slideshow: Biggest Tech Blunders
The Justice Department also said that the deal could drive up prices because Google might gain a monopoly on some out-of-print books. The original agreement was reached in October 2008.
Ongoing litigation regarding this issue is expected to be resolved by November, Drummond added. Once it's resolved, Google expects to be able to go ahead with the agreement it reached with U.S. publishing firms a year ago, with a few changes, he said.
"It's an arrangement that carries public benefit, making books available to students and others," he added.
The company is moving ahead with reaching bilateral agreements with publishers worldwide, he said.
About 30,000 partnerships have already been established, with more than 9,000 of those in Europe. Google has already scanned about 2 million books and made them available online, with those that are copyrighted limited to a few pages within the search terms.
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5ae4143c41789f617b63720ee970ffb3 | https://www.cnbc.com/2009/10/15/h1n1-in-the-heartland.html | H1N1 In The Heartland | H1N1 In The Heartland
Notes from the front lines of the battle against H1N1.
So, I've spent part of yesterday and most of today at the University of Kansas Hospital covering the first H1N1 flu shots being administered.
Earlier this week the hospital got 1,100 H1N1 doses from the local county health department. 500 are AstraZeneca's FluMist and 500 are in multi-dose vials (10 each) of Sanofi-Aventis' injectable vaccine. They also got another 100 individual doses in syringes that don't contain thimerosal.
That's the preservative and decontaminant that some people are afraid of. Those shots are specifically earmarked for expectant mothers.
There's been a line for the vaccines nearly the whole time the "Shot Stop" has been open.
For now, at the direction of the health department, the hospital's H1N1 task force is offering the vaccine only to staffers in the ER, pediatrics and obstetrics and to pregnant employees and patients. For people who work on the front lines here the H1N1 vaccine is mandatory, for others it's "encouraged."
VIDEO0:0000:00Huckman Gets Flu Shot
Just to be clear, the shot I got live on MSNBC today was a seasonal flu vaccine. I, along with thousands of others at the U of K Hospital, have to wait for the H1N1 vaccine to be more widely available because I'm not in the so-called high priority group. The CDC says that should be around the end of this month. It'll give the first weekly update on vaccine supply and distribution tomorrow.
As far as H1N1 activity here is concerned, anecdotally, one adult with a confirmed case is in the ICU and a one-year-old with a confirmed case is in the pediatric ICU. The nearby Children's Mercy Hospital has had more serious cases, including one that was featured on ABC's "Nightline" a couple days ago.
U of K Hospital says there have been a few instances where, for a short time, the ER has had to send ambulances to other hospitals because it's been so full due to the flu.
Nonetheless, the hospital's H1N1 task force chief says the ER is ready to handle a potential outbreak.
But he candidly calls the overall situation "a story of shortages." He's referring to the availability of vaccines, masks, respirators, etc.
I don't think I've ever used as much hand sanitizer and disinfectant as I have today. I hear someone coughing down the hall right now and it makes me nervous. I'm anxious to get my H1N1 shot, but I will wait my turn.
Questions? Comments? Pharma@cnbc.com and follow me on Twitter at mhuckman
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01262cb96e284bc4dd99f4d7b10223e4 | https://www.cnbc.com/2009/10/15/halftime-report-gobble-up-goldman-on-the-dip.html | Bank stocks slipped on Thursday after quarterly results from Goldman Sachs and Citigroup failed to live up to heightened expectations.
Although both banks produced great numbers, the results didn’t compare to those reported by JPMorgan one day earlier. And investors drove the Dow above 10,000 on hopes other banks would follow suit.
VIDEO0:0000:00Fast Money Halftime Report
Where are the opportunities in this tape?
I like Goldman on a pullback, reveals technical analyst Greg Troccoli of Opalesque. I’m a buyer at $185 which is the stock’s 21-day moving average. As for Citi, I can’t get excited even if it pulls back to $4.
I’m also a buyer of Goldman, says Fast Money trader Joe Terranova, though I too would like to see it pullback. If the market goes higher I think Goldman goes higher too.
Goldman is up over 120% for the year, reminds Jeff Tomasulo of SMB, but I like the name. 185 seems like a good entry point.
Elsewhere in the sector, I expect a bit of a surprise in BofA earnings, muses Eugene Profit of Profit Funds, especially coming from their Merrill unit. I expect to see returns from trading the proprietary accounts.
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TAKE YOUR POSITION: GOOGLE
All eyes are on Google with the Internet giant reporting earnings on Thursday after the bell.
Analysts surveyed by Thomson Reuters expect Google to earn $5.40 per share on revenue of $4.23 billion. The estimates exclude Google's expenses for employee-stock compensation, unusual charges and the revenue that the company pays its advertising partners
What’s the trade?
I’d stay long, counsels Joe Terranova. I expect good things from this stock going forward.
With Google trading at a mid-20’s P/E I think it’s okay to hold the stock, adds Eugene Profit.
I wouldn’t be betting on a big upside move post earnings, says Citi analyst Mark Mahaney on Wednesday’s Fast Money. Going forward you need to watch the impact from mobile smartphones as well as profitability out of YouTube and real expansion in margins. That’s what will take shares higher. I don’t think we see it on Thursday although I do expect to see it over the next year.I think if you’ve missed Google’s move, you should wait, echoes Guy Adami. Don’t jump in on Thursday.
If you're looking for other tech trades, elsewhere in the space, I’d look at Amazon and Ebay , adds Profit.
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OIL CONTINUES CLIMB HIGHER
Oil rose toward $76 a barrel on Thursday in its sixth straight session of gains after a government inventory report showed large drops in gasoline and distillate stocks, surprising the market.
What’s the trade?I’d stay with this trade, counsels Joe Terranova. It seems to me that oil is breaking out. I’m also a buyer of oil services names.
Patterns in the weekly chart of oil suggest if it settles above $76 on Friday, it clears the way for a move toward $89 barrel, explains technical analyst Greg Troccoli.
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OPTIONS ACTION: IBM
Brian Stutland of Stutland Equities has spotted unusually heavy options activity in IBM ahead of earnings later today.Stutland sees heavy call buying at the money, which suggests to him that any earnings move is already priced into the stock. As a result, Stutland thinks the company’s beat would have to be extreme to generate any big moves.
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FAST & FURIOUS: THE KEY QUESTIONS INTO THE CLOSE
BUY AMD? With AMD reporting after the bell today, should you buy ahead of results?
No, I’m not a buyer until they turn a profit, says Joe Terranova.
BUY GE?GE reports earnings ahead of the bell tomorrow, should you buy?
I’d stay on the sidelines, reveals Greg Troccoli.
BUY HAL? Energy giant Halliburton reports earnings before the bell tomorrow, should you get in?
I’m not a buyer of HAL, says Eugene Profit, but with the price of crude rising I like oil services space.
BUY JPM? Considering Fox-Pitt Kelton upgraded JP Morgan to Outperform , should you buy?
I’d wait for the stock to pullback to $46, counsels Jeff Tomasulo.
------------TRADE TO GO: ENERGY PLAYJoe Terranova suggests putting refiners on your radar. Sunoco , Holly Corp and Frontier are all worth a look, he says.
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CALL THE CLOSE
Joe Terranova: I’m a buyer.Greg Troccoli: I’m a seller.Eugene Profit: I’m a seller.Jeff Tomasulo: I’m a seller.
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .Trader disclosure: On October 15, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT): Terranova Owns (SUN), (OIH), (HOC), (HES), (GOOG), (IUYG), (OHI), (FTO): Terranova Is Short (GRMN), (CCL): Najarian Owns (BX) Calls; Najarian Owns (DELL) Call Spread; Najarian Owns (GE) Calls; Najarian Owns (GOOG) Nov. Calls, Is Short (GOOG) Oct. Calls; Najarian Owns (HMY) Calls; Najarian Owns (IBM) Nov. Calls, Is Short (IBM) Oct. Calls; Najarian Owns (LAZ), Is Long (LAZ) Puts, Is Short (LAZ) Calls; Najarian Owns (MYL) Calls; Najarian Owns (RIMM) Call Spread; Najarian Owns (STX) Call Spread; Najarian Owns (TEVA); Najarian Owns (YHOO) Call SpreadGE Is The Parent Company Of CNBCNBC Universal Is The Parent Company Of CNBCCNBC.com with wires
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48cee85b1df4a2c8c55c2c947c1dd150 | https://www.cnbc.com/2009/10/15/it-doesnt-get-much-better-for-banks.html | It Doesn't Get Much Better For Banks | It Doesn't Get Much Better For Banks
The problem for financials: the best have already reported. It's simple: Goldman Sachs and JP Morgan have reported, it doesn’t get any better than that. They are the highest quality companies. From here, the news will likely be tougher.
In the next few weeks, we will be hearing from regional banks, and there will be lots more concern over commercial real estate losses.
Tomorrow, we also get Bank of America, with its significant exposure to the consumer and mortgages. A little nervousness about this one.
Elsewhere, credit card delinquenciescontinue to rise, for the most part.
American Express the last of the big card companies to report credit card delinquency trends for September.
The news for them was good: delinquencies (30 days or more late) were 4.1 percent, the same as August.
But that is not the trend: delinquencies are increasing at the other major companies.
The hope of the bulls was that delinquencies would slowly be dropping by now.
I Still Like Financials: Chief Investor
But look at these delinquency numbers for September:
Capital One: 5.38 percent, UP from 5.09 percent in August.
Bank of America : 7.53 percent, UP from 7.47 percent in August
Discover : 5.57 percent, UP from 5.38 percent in August
All up. That wasn't supposed to happen. Delinquencies are an early warning sign, and there's a close correlation between delinquencies and net charge-offs (money the banks think they will never recover).
Card companies are getting squeezed from both sides:
1) receivables are going lower because the consumer is not using their cards as much, and card companies are tightening credit.
2) losses are still large.
So how do you make money? It's tough. Bottom line: job losses and stresses on consumer budgets still hurting credit card companies.
Remember, these card companies are also dealing with consumer protection legislation that will hurt their income.
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The Dow 30 in Real TimeThe CNBC Stock Blog
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Questions? Comments? tradertalk@cnbc.com
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11e0f7b63c0fa9b08923f41922df9677 | https://www.cnbc.com/2009/10/15/lightning-round-wendys-suntech-power-international-bancshares-and-more.html | Hatteras Financial : Cramer said he needed to do more research on HTS before making a call.
Pre-Paid Legal Services : Don’t buy PPD, Cramer said.
15 Rules for Playing Defense
International Bancshares : Sell IBOC, Cramer said.
VIDEO0:0000:00Lightning Round
Warner Chilcott : Cramer is bullish on WCRX.
Suntech Power : Until the government subsidizes solar power and oil prices reach $90, Cramer can’t endorse STP.
Wendy’s/Arby’s Group : Cramer recommended WEN as a speculation play.
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com
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650f6aaf04cc2451d8b7b7e178f76b4a | https://www.cnbc.com/2009/10/15/losey-protecting-your-portfolio-qa.html | Losey: Protecting Your Portfolio Q&A | Losey: Protecting Your Portfolio Q&A
Question: I will retire in 5 years. How can I protect my money, both now and in the future? Dean, New Hampshire
Answer: Dean, when you talk about “protection”, I believe you mean principal protection. However, when I hear the word protection, I believe that what you really want to know is how to grow and manage your nest egg so it can generate a steady stream of income in the future.
Creating a steady stream of predictable income is easy. You can work with your current investment custodian and have them pay you income on a pre-determined basis. For example, many of my private clients take money two times per month to replicate their former biweekly paycheck.
Creating sustainable income is harder since we don’t know how long we’ll live. So you’ll need to monitor your withdrawals at least annually. Obviously, the less you take out, the lower inflation is, and the higher return you earn on your money, the longer it will last. Conversely, the more money you take out, the higher inflation is, and the lower your return is, the shorter your nest egg will last. Most experts agree that withdrawing 4% of your money every year beginning in year one and then increasing the amount of the withdrawal each year to account for inflation is a prudent strategy.
Creating increasing income is vital to your retirement success because the cost of goods and services is always going up. Even at a low inflation rate of 3%, you’d need to double your income in approximately 20 years just to maintain the same standard of living you have today. That’s why it’s so important to maintain at least some portion of your individual retirement account in the equity (stock) market.
Bill’s Bottom-line: Past performance is no guarantee of future results, but as of now, the equity markets have been the only place that has consistently delivered returns at or above inflation over long periods of time. To learn more, download a FREE 25-page report What Wall Street Doesn’t Want You to Know, available at www.MyRetirementSuccess.com.
Your Money on CNBC.com
The World's Best Banks 2009Slideshow: What Does $1 Trillion Look Like?Slideshow: How Your Tax Dollars Are Spent
_________________________Bill Losey, CFP®, America's Retirement Strategist®, coaches women and couples nationwide with their retirement planning and investment portfolios. Bill is the author of Retire in a Weekend! The Baby Boomer’s Guide to Making Work Optional and he also publishes Retirement Intelligence®, a free weekly award-winning newsletter. You can learn more at .
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7cf6e4bca0229e39259a9423f12c9e8e | https://www.cnbc.com/2009/10/15/nine-key-estateplanning-tools.html | Nine Key Estate-Planning Tools | Nine Key Estate-Planning Tools
You're ready to tackle estate planning, but you're not sure what "equipment" you need. Flounder no more. Here are nine essential estate-planning tools, along with details about what they do and why you need them.
1. WillA will is a written document in which you identify what you'd like done with your assets upon your death. There's some tension within the estate-planning community about which is better, a will or a trust. But many experts say that if you don't have a complicated estate, a will should do the trick. "All a person of modest means needs is a will," says John Dadakis, an estate-planning partner at Schiff Hardin LLP in New York City.
iStockphoto
Even if you have children, a will may still be enough. "For young couples, a will is usually sufficient," says Ronald Morton, founder of the Morton Law Firm PLLC in Clinton, Miss. "Generally speaking, your assets aren't significant, and the primary item to address is guardianship of your minor children if both parents die."
2. Living trustA living trust is a contract that holds title to and controls your assets. "You put in that document all your plans, wishes and desires," says Wade Vose, a partner at the Vose Law Firm in Winter Park, Fla., "of how you'd like those things controlled during your life, during disability and when you pass on."
One difference between a will and a living trust is when they take effect. "A will takes effect only when you die," says Kristi Mathisen, a CPA and estate planning attorney at the Seattle wealth management firm of Laird Norton Tyee. "A living trust takes effect when you execute it and begins to operate when you transfer assets to it. So if a person who makes a will becomes disabled, the will is of no value to the family in managing the person's assets. That's not true for a living trust, which can provide for a replacement trustee when the trustee becomes incapacitated."
Vose says trusts are just about always preferable to wills. "One common reason you'd like a living trust is that when done properly, it avoids the probate process, which is long, expensive and very public," he says. "With a living trust, your assets can pass to your beneficiaries privately without having to go to court, and it's generally a less expensive process."
Saying probate is expensive can be an understatement. "In California, the statutory fees can be 3 percent to 5 percent of an estate," says Alan Spiegelman, a wealth management adviser at Northwestern Mutual Wealth Management Co. in San Francisco, who recently shepherded a friend's estate through probate. "Handling my friend's estate took at least 200 hours because he had a will but no trust, and it cost nearly $200,000 in legal fees. If there had been a trust, the assets would have passed outside probate court."
In Ohio, probate costs are 4.5 percent of the first $100,000, 3.5 percent of the next $300,000, and 2.5 percent of everything over that amount, says Mark Clair, an attorney at The Clair Estate Planning and Elder Care Law Firm in Maumee, Ohio. Nonprobate costs are typically 1.5 percent.
_____________________________________More Advice From Bankrate.com:
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Even if you choose a trust, however, you should also opt for what's called a pour-over will. "It's a will that pours over into the revocable living trust any assets that aren't titled in the trust at the time of your death," says Steven Oshins, a partner at Oshins & Associates LLC in Las Vegas. "It's necessary because people often neglect to retitle all their assets in the name of their living trust, and a pour-over will act as a catchall to capture those assets. However, those assets will go through probate."
Whether you go with a will, a trust or both, go with something. "Anyone who has any assets that they care where they go after their death should have an estate plan," says Spiegelman. "If you say you don't have an estate plan, you actually do. It's just an intestate plan, in which your estate plan is by default decided by a judge according to your state's law."
Next: Life insurance, power of attorney, and others...
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c6663f23ffd1e003c77158ed40d045ac | https://www.cnbc.com/2009/10/15/nobel-prizes-reinforce-growing-trend.html | Nobel Prizes Reinforce Growing Trend | Nobel Prizes Reinforce Growing Trend
More Nobel Prize winners were announced this week, and it was interesting to note that a record number of women (five) were honored this year. This dovetails with something I’ve been hearing a lot recently – women on the rise throughout the U.S. economy and the world.
In early September at the Ambrosetti forum, Gary Becker, a Nobel Prize winner himself and a professor at the University of Chicago, told me that women are receiving 60 percent of higher degrees all around the world. We talked about it at the time in Investor Brief (click here to read more) because I thought that was fascinating, especially considering that includes countries in which women traditionally have not been encouraged to pursue advanced education.
Becker said that one of the issues arising from this trend is that men are now falling behind. When I asked him why, he said that more men are dropping out and, on average, not sticking with things they don’t understand where as women right now are persevering longer (again, on average).
How The World Has Changed - Dow 10k: Then & Now
Right after that, I attended the Fortune Most Powerful Women Summit, where I was really struck by the number of professional or so-called “powerful” women at the conference. It has grown quite substantially in recent years.
Ironically, ForbesWoman magazine came out that same week with a cover story saying that, five years after Larry Summers’ infamous remarks that women are underperformers in science and engineering, women with science degrees are leading some of the largest global companies. (Summers was president of Harvard at the time and is now director of the National Economic Council.) In fact, one of the big events at the conference was the historic handoff of the CEO job at Xerox from Anne Mulcahy to Ursula Burns, who has a master’s in mechanical engineering.
I can’t help but think back to my own experiences when I began reporting from the floor of the New York Stock Exchange in 1994. At that time, the floor was male dominated, and it was also a rather closed club, so they didn’t like the idea of a reporter – much less a female reporter – on their turf. There were a few bumps along the way, but eventually everything worked out fine.
Slideshow - Best American CEOs of All Time
Male or female, I think we all just want opportunities in life; what we do with them is up to us. And as investors, we just want to make money. In the end, whether the person leading the company is a man or woman is much less important than whether they are the right person for the job.
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The Dow 30 in Real TimeThe CNBC Stock Blog
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Questions? Comments? Write toinvestoragenda@cnbc.com
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217f436340b5dd704dc7e788df1523b7 | https://www.cnbc.com/2009/10/15/pops-drops-chicago-bridge-iron-cypress-semiconductor.html | Following are the day’s biggest winners and losers. Find out why shares of Chicago Bridge & Iron and Sunoco popped while Cypress Semiconductor and Baxter International dropped.
POPS (stocks that jumped higher)Chicago Bridge & Iron (CBI) popped 10%. Goldman upgraded the company to ‘buy’ from ‘neutral’ citing its Australia nat gas project. - I think it's going higher, says Guy Adami.
Sunoco (SUN) popped 10%. A government inventory report showed large drops in gasoline and distillate stocks, surprising the market. – I’d be long this and other refiners, says Joe Terranova on Fast Money’s Halftime Report.
DROPS (stocks that slid lower)
Cypress Semiconductor (CY) dropped 6%. The semi name closed down on a third quarter loss due to weak demand. - Intel raised the bar for everybody in the sector, explains Pete Najarian.
VIDEO0:0000:00Stock Pops & Drops
Las Vegas Sands (LVS) dropped 6%. The WSJ reported that the Guangdong visa office may place restrictions on the number of people allowed to visit Macau. - I think casinos have moved too far too fast, says Joe Terranova.
Nokia (NOK) dropped 11%. The largest handset maker in the world reported a worse than expected third quarter loss on a big writedown. - I'm a buyer around $13.40.
Baxter International (BAX) dropped 5%. The medical-products maker reported flat revenues for the third quarter and sales also missed expectations.
Southwest Airlines (LUV) dropped 6%. The discount carrier reported a loss citing weak passenger revenue, hedging costs, and buyout costs.
Capital One Financial (COF) dropped 3%. The credit card company said September delinquencies and charge-offs rose from August.
Emerging Markets ETF (EEM) dropped 1%. Investors took profits after the emerging markets ETF recorded its longest rally in 4 years.
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! If you'd prefer to make a comment but not have it published on our website send your e-mail to .Trader disclosure: On October 15, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT): Terranova Owns (SUN), (OIH), (HOC), (HES), (GOOG), (IUYG), (OHI), (FTO): Terranova Is Short (GRMN), (CCL): Najarian Owns (BX) Calls; Najarian Owns (DELL) Call Spread; Najarian Owns (GE) Calls; Najarian Owns (GOOG) Nov. Calls, Is Short (GOOG) Oct. Calls; Najarian Owns (HMY) Calls; Najarian Owns (IBM) Nov. Calls, Is Short (IBM) Oct. Calls; Najarian Owns (LAZ), Is Long (LAZ) Puts, Is Short (LAZ) Calls; Najarian Owns (MYL) Calls; Najarian Owns (RIMM) Call Spread; Najarian Owns (STX) Call Spread; Najarian Owns (TEVA); Najarian Owns (YHOO) Call SpreadGE Is The Parent Company Of CNBCNBC Universal Is The Parent Company Of CNBC
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8c7e680dd2d6f7f65476f3dab7867c1e | https://www.cnbc.com/2009/10/15/premium-seats-worth-less-than-50-percent-of-cost.html | Premium Seats Worth Less Than 50 Percent Of Cost | Premium Seats Worth Less Than 50 Percent Of Cost
It was obvious that much of corporate America wasn’t showing up at the sporting events that they had tickets for, but many readers were shocked when they saw our report earlier this month that revealed that an estimated 43 percent of sports tickets went unused.
The data was provided to us by Corporate Events Group, a company that helps companies internally manage their ticket inventory.
Today, they’re back with another stat that is mind-blowing. Premium seats (club or suite tickets) are selling on the secondary market for less than 50 percent of their face value in 2009, according to Anthony Knopp, vice president of business development for the company. In some instances, Knopp says, the most valuable seats in the stadium are selling for as low as 20 percent of the original cost.
Check it out: America's New Stadiums
Teams have dealt reacted differently depending on the extent to which they thought they had to adjust to make sure the price was right in the new economy. The New York Yankees, whose seats were as costly as $2,500, cut prices by as much as 40 percent. But the Washington Nationals haven’t changed the most expensive seat in their park — $300 per game — for next year.
Questions? Comments? SportsBiz@cnbc.com
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cce4b6aadf7edd1c27b58a93f654ac08 | https://www.cnbc.com/2009/10/15/revenge-of-the-hollywood-temp.html | Revenge of the Hollywood Temp | Revenge of the Hollywood Temp
You think Lloyd has a rough time on "Entourage"? At least he's not a temp. You saw how Ari treated those people after Lloyd left.
Rex LeeGetty Images
However, revenge is sweet, especially in Hollywood, and temps have found their voice in a blog called The Temp Diaries, purportedly written by one of their own. The blog is based on the premise that temps "are completely disposable", and treated as such (though the writer also points out "WARNING: BLOG MAY CONTAIN TYPOS"—maybe that's why you're a temp?).
So who in Hollywood treats "the little people" poorly? The blog has just released this year's "Brown List" of The Most and Least Liked Entertainment Executives in Tinsletown.
More than twelve hundred voters submitted names, but since people could anonymously submit the same name multiple times, this isn't exactly a scientific assessment.
In the least liked category, coming in first place is Randall Emmett of Family Room Entertainment. He received 42 votes, far ahead of second place winner Jason Lust, VP of Feature Development for the Jim Henson Co. (the Muppets hate their master?). I've never heard of Emmett. Neither had the blogger, who wrote that, "After looking at his credits (The Wicker Man, 88 Minutes) I can see why you might dislike him. The average domestic take for those films—which starred Nicolas Cage and Al Pacino respectively—was a paltry $20 million. Eeek."
More Revenge—Slideshow: Fallen Stars: Celebrity Foreclosures
Number three on the least liked list is Jeff Arkuss at 20th Century Fox , followed by notoriously volatile producer Scott Rudin and agent Brent Morley, who reps Dustin Hoffman and Sasha Baron Cohen. The rest of the list is made up of the usual suspects, including some current and former executives at CNBC parent NBC Universal. The Brown List points out a few interesting discrepancies, like, "Harvey and Bob Weinstein didn't get an equal number of nominations even though they are co-Chairman at TWC. Harvey got 8. Bob only got 3". Anyone surprised?
As for the MOST liked executives in Hollywood, coming in first place is someone from a videogame company—James Waugh, story developer and writer at Blizzard Entertainment, a firm famous for developing World of Warcraft. Once again in second place is someone from the Jim Henson Co.—Joe LeFavi, a director of development. Third is a tie between Luke Ryan, senior VP at MGM, and Michael Fisk, VP of digital marketing at Sony Pictures . Three people tied for fourth—Greg Silverman at Warner Bros., Holly Bario at DreamWorks, and Jonathan Eirich at DreamWorks. Seven people tied for fifth, with the biggest names including Kim Roth at Imagine Entertainment, Mike Paseornek of Lions Gate , and Ron Meyer of Universal Studios Group (part of our parent company GE ).
Hollywood's Bragging Rights—Slideshow: Highest Grossing Movies of All Time
Some notes: Disney CEO Bob Iger got two votes as most liked, but so did the man he recently let go, Dick Cook. Agent Ari Emanuel ended up on both the most and least liked lists, with two votes for him and six votes against. Stephen Colbert got one vote as most liked, while Jon Stewart got one as least liked. The blogger suspects Colbert cast both votes. There was also one vote on the least liked list for "Everyone at 20th Century Fox" and another for "99 percent of all agents".
As for the list's impact? "It'd also be neat if it shames certain executives into cleaning up their act. However, I doubt that will happen."
See the whole list here
Questions? Comments? Funny Stories? Email
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640e477b42fcbc147887ffe561c8c002 | https://www.cnbc.com/2009/10/15/search-begins-after-balloon-lands-without-boy.html | Search Begins After Balloon Lands Without Boy | Search Begins After Balloon Lands Without Boy
Colorado authorities are beginning a search for a 6-year-old boy who was thought to be inside a runaway homemade balloon.
After flying for more than two hours, the balloon landed in a Colorado field. It was immediately surrounded by as rescue crews, but no one was inside of it.
Cathy Davis of the Larimer County Sheriff's Department told reporters the balloon was owned by the boy's parents and tethered behind the family's home. She said two sons were playing outside when the older boy saw the younger one go into a compartment at the bottom of the balloon and fly away.
The balloon was airborne for more than two hours.
-CNBC.com contributed to this report.
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8e89bd5a30d05332b18665a7543f1c5e | https://www.cnbc.com/2009/10/15/sell-on-the-news-ibm.html | Sell On The News - IBM | Sell On The News - IBM
IBM: more sell on the news…. down 5 percent after the close…earnings and guidance was just not enough, it’s a simple as that. Remember, they were very bullish at the mid point, so the Street got very long IBM, taking the stock up 20 percent in the third quarter.
CNBC's Jim Goldman - Big Blue Gets Even Bigger
“Sell the news, following the spike off Intel[earnings],” one tech trader told me.
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The Dow 30 in Real TimeThe CNBC Stock Blog
Questions? Comments? tradertalk@cnbc.com
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9d7be9d83bb916d9c963d3ba6a5035bd | https://www.cnbc.com/2009/10/15/social-security-to-make-it-official-no-cola.html | Social Security to Make it Official: No COLA | Social Security to Make it Official: No COLA
The Social Security Administration makes it official Thursday: There will be no cost of living increase for Social Security recipients next year, the first year without one since automatic adjustments were adopted in 1975.
The announcement comes as President Barack Obama and key members of Congress call for a second round of $250 payments to more than 50 million seniors, veterans, retired railroad workers and people with disabilities.
The payments would be equal to about a 2 percent increase for the average Social Security recipient. The cost: $13 billion.
Obama called on Congress Wednesday to approve the payments, and several key members of Congress said they would.
"This additional assistance will be especially important in the coming months, as countless seniors and others have seen their retirement accounts and home values decline as a result of this economic crisis," Obama said in a statement.
Blame falling consumer prices for no automatic increase next year. By law, Social Security's cost-of-living adjustment, or COLA, is pegged to inflation, which was negative this year, due largely to falling energy costs.
The $250 payments would go to Social Security recipients as well as those receiving veterans benefits or disability benefits, railroad retirees and retired public employees who don't receive Social Security. Recipients would be limited to one payment, even if they qualified for more.
Social securityAP
Obama said he would not allow the payments to come out of the Social Security trust funds and further erode the finances of the retirement program. Social Security already is projected to pay out more in benefits than it collects in taxes in each of the next two years.
However, Obama did not offer any alternatives to finance the payments. A senior administration official said Obama was open to borrowing the money, increasing the federal budget deficit. The official, who requested anonymity, was not authorized to speak on the record.
The $250 payments would match the ones issued to seniors earlier this year as part of the massive economic recovery package enacted in February. Those, too, were financed with borrowed money.
Senate Majority Leader Harry Reid, D-Nev., said he supports sending out another round of payments, as did Rep. Charles Rangel, D-N.Y., chairman of the Ways and Means Committee, which has jurisdiction over Social Security in the House.
Other lawmakers said Social Security recipients shouldn't get the extra payments because the formula doesn't call for it.
"I think it would be inappropriate," said Sen. Judd Gregg, R-N.H. "The reason we set up this process was to have the Social Security reimbursement reflect the cost of living."
Social Security payments increased by 5.8 percent in January, the largest increase since 1982. The big increase was largely because of a spike in energy costs in 2008.
Inflation has been negative this year as gasoline prices have dropped 30 percent and overall energy costs have dropped 23 percent, according to the Bureau of Labor Statistics.
Social Security payments, however, cannot go down. The average monthly Social Security payment for all Social Security recipients is $1,094.
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409b21b42b24ecef77563617849c62e6 | https://www.cnbc.com/2009/10/15/the-new-color-of-tech-envy-ibm-blue.html | The New Color of Tech Envy: IBM Blue | The New Color of Tech Envy: IBM Blue
IBM's storied history took a dramatic turn when Big Blue got out of the personal computer industry.
At the time, and I covered that story, there was a sinking feeling that IBM's relevance was at risk.
The company was trying to reinvent itself, but into what?
And how successful would it be?
Short answer: Very.
And now, the IBM model is turning into something of a playbook for other massive tech companies looking to come up with a new, more efficient, streamlined way of banking profits. On the eve of IBM's quarterly earnings, it's a good opportunity to see what's happening here, and whether these other companies stand the same chance at success that IBM has achieved.
Consider Xerox's recent merger of ACS. Or HP's acquisition of EDS. Or Dell's purchase of Perot Systems.
All of these massive deals have one critical thing in common: Big hardware trying to transform into big services instead. IBM though will argue that these deals also feature another common theme: that they're largely labor-centric, US-based and offer comparatively lower end services.
Consider the IBM model, going back to when CEO Sam Palmisano took over as the company's chairman and CEO in 2003: 80 acquisitions since then designed to automate services, augment software assets, and grow margins.
Michael Dell Expects to See IT Spending Bounce
While so many key competitors in the business like HP and Dell and others are Johnny-come-latelys to this services party, IBM has been there for years, learning the hard lessons and then applying them to the new model.
Catch-up in the industry comes at a heavy cost so it'll be interesting to see whether HP's Mark Hurd and Michael Dell will try to re-invent the wheel with their own strategies, or adopt the IBM methodology which IBM has already done so well.
Which leads me to the company's earnings report after the bell tonight.
The Street is looking for $2.38 a share on $23.4 billion in revenue. Keep an eye on gross margins, expected to be around 45.5 percent. Services margins have jumped in 17 of the past 18 quarters; watch the company's hardware business, particularly any growth in servers, profits on the software side too.
On a unit by unit basis, the Street anticipates $9.32 billion in Technology Services revenue; $4.42 billion in Business Services; Systems/Technology should print $3.86 billion in revenue; $5.11 billion in Software revenue.
As far as guidance is concerned, remember that IBM no longer offers quarterly outlooks, but the company did raise EPS expectations to $9.70 earlier this year, and that might bump up with tonight's report if the trends everyone is watching as far as stabilized and even increased IT spending continue.
If the increase in full-year EPS doesn't happen, that might indicate a slowdown in IT spending, and that doesn't bode well for how IBM shares will trade on this news.
There's a fair amount of pressure on IBM to keep this tech rally going, so it will all come down to what the company is seeing on a macro-economic basis around the world. Cautious optimism may finally give way to something a little more stable. And that's got to be good not just for IBM, but broader tech.
Questions? Comments? TechCheck@cnbc.com
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4d5bc52990df62f45d8ab36a35302c27 | https://www.cnbc.com/2009/10/15/the-next-episode-of-cnbcs-executive-vision-airs-tuesday-oct-20th-at-9pm-1am-et.html | The next episode of CNBC's "Executive Vision" airs Tuesday, Oct. 20th at 9PM & 1AM ET | The next episode of CNBC's "Executive Vision" airs Tuesday, Oct. 20th at 9PM & 1AM ET
FOR HIGHLIGHTS CONSIDERATION:
The next episode of CNBC's 5-part primetime global series, "Executive Vision," (episode 4) airs Tuesday, Oct. 20th at 9PM & 1AM ET on CNBC.
"Executive Vision," a CNBC five-part series hosted by CNBC's Melissa Francis and Simon Hobbsand sponsored by Credit Suisse, is an executive strategy session as some of the world's brightest minds gather to tackle the most compelling issues they face in their fields. The series examines how leaders gain the trust, dedication and admiration of all around them as they confront the challenges in today's ever-changing world.
The series explores the art of leadership within five specific industry groups and gets to the heart of what drives some of the world's most successful, courageous, and insightful leaders.
In this episode entitled "Leading in an Interconnected World: Transportation," the series looks at leadership within the transportation sector. Transportation's leaders are facing their fair share of challenges -- rising fuel costs, dependence on foreign oil, pressure to care for the environment. How are transportation's leaders dealing with these hurdles and using their vision to upgrade the system? We answer those questions and more in a dynamic discussion with transportations most insightful leaders. Guests include ROBERT CRANDALL, Former CEO, Chairman & President American Airlines; JOHN KRAFCIK, President & CEO, Hyundai Motor America; ELON MUSK, CEO & Chairman, Tesla Motors; DAVID NEELEMAN, Founder JetBlue; TONY FERNANDES, CEO, AirAsia; ANAND MAHINDRA, Vice Chairman & Managing Director, Mahindra & Mahindra; and DR. BEVERLY SCOTT, CEO & GM, The Metropolitan Atlanta Rapid Transit Authority.
"Executive Vision" airs for five consecutive Tuesdays beginning Tuesday, September 29th at 9PM and 1AM ET on CNBC.About CNBC:CNBC is the recognized world leader in business news, providing real-time financial market coverage and business information to more than 340 million homes worldwide, including more than 95 million households in the United States and Canada. The network's Business Day programming (weekdays from 5:00 a.m.-7:00 p.m. ET) is produced at CNBC's headquarters in Englewood Cliffs, N.J., and also includes reports from CNBC news bureaus worldwide. Additionally, CNBC viewers can manage their individual investment portfolios and gain additional in-depth information from on-air reports by accessing http://www.cnbc.com.Members of the media can receive more information about CNBC and its programming on the NBC Universal Media Village Web site at http://nbcumv.com/cnbc/.
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818e94950747fce7a5cf88d7b7a2a41e | https://www.cnbc.com/2009/10/15/these-large-cap-tech-stocks-will-rule-2010-portfolio-manager.html | These Large Cap Tech Stocks Will Rule 2010: Portfolio Manager | These Large Cap Tech Stocks Will Rule 2010: Portfolio Manager
Google, IBM and AMD are the next tech giants to report earnings after the bell on Thursday. David Eiswert, portfolio manager at T. Rowe Price Associates shared his insights on what to expect from the tech sector going forward.
VIDEO0:0000:00Tech Earnings Preview
“The big trend has been a snap-back in the supply chain,” Eiswert told CNBC.
“You’ve seen that in Intel’s results and Xilinx, and solid companies putting up solid bounce-back numbers.”
Eiswert said IBM is a global services “powerhouse.”
“Xerox , Dell or HP , are trying to emulate the footprint that IBM has built globally—and that’s a unique asset [for IBM],” he said.
CNBC Data Pages:
Dow 30 Stocks—In Real Time Track the Dow Jones Tech Index HereComplete Earnings Coverage
Eiswert said in the mid- to long-term, large cap technology companies such as Google and IBM will offer innovation and globalization. “And that’s what next year’s going to be about—not so much about the bouncing back of the supply chain.”
He also expects a PC enterprise refresh sometime in the middle of 2010. “We think that shifts more toward enterprise next year simply because enterprise PCs are too old.”
More Tech Outlooks:
My Intel Price Target Now: Tech AnalystSector Strategies for the Dow 10,000 Market10 Stock Picks from 2 Top Investment Strategists
______________________________CNBC Slideshows:
Biggest Tech Blunders in the Last 25 Years
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Disclosure:
Eiswert’s firm owns shares of Apple, Google, IMB and Microsoft.
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Disclaimer
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f0800f79b515422530f59bfc5e54d4c3 | https://www.cnbc.com/2009/10/15/us-house-panel-approves-new-otc-derivatives-rules.html | US House Panel Approves New OTC Derivatives Rules | US House Panel Approves New OTC Derivatives Rules
New rules for the largely unpoliced, $450-trillion over-the-counter derivatives market were approved by a key U.S. congressional committee on Thursday in a win for the Obama administration.
The House of Representatives Financial Services Committee voted largely on party lines in favor of the rules after months of intense lobbying by major banks and corporations to shape legislation proposed by the administration and modified in recent days during House debate.
A vote of the full House on a broader financial reform measure was expected in November. The outlook in the Senate was unclear, with lawmakers struggling to meet an end-of-the-year target for completing reforms intended to prevent a repeat of the 2008-2009 financial crisis, the worst in generations.
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979a4e5ca228c96bcda26e5b67cb86fd | https://www.cnbc.com/2009/10/15/web-extra-next-week-could-be-critical-for-goldman.html | We've got a double header for you. Greg Troccoli interprets chart patterns and Pete Najarian take a look at the Vix.
WEB EXTRA: VIXWall Street’s favorite measure of fear has fallen to its lowest level in over a year. Are traders becoming too complacent?
VIDEO0:0000:00Fast Money Web Extra
CHART EXTRA: GOLDMANTechnical analyst reveals why the next week could be critical for this stock.
VIDEO0:0000:00Chart Extra
______________________________________________________Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! If you'd prefer to make a comment but not have it published on our website send your message to .Trader disclosure: On October 15, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT): Terranova Owns (SUN), (OIH), (HOC), (HES), (GOOG), (IUYG), (OHI), (FTO): Terranova Is Short (GRMN), (CCL): Najarian Owns (BX) Calls; Najarian Owns (DELL) Call Spread; Najarian Owns (GE) Calls; Najarian Owns (GOOG) Nov. Calls, Is Short (GOOG) Oct. Calls; Najarian Owns (HMY) Calls; Najarian Owns (IBM) Nov. Calls, Is Short (IBM) Oct. Calls; Najarian Owns (LAZ), Is Long (LAZ) Puts, Is Short (LAZ) Calls; Najarian Owns (MYL) Calls; Najarian Owns (RIMM) Call Spread; Najarian Owns (STX) Call Spread; Najarian Owns (TEVA); Najarian Owns (YHOO) Call SpreadGE Is The Parent Company Of CNBCNBC Universal Is The Parent Company Of CNBC
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bd6bc32f6a1b1116ba956b5d6721b03e | https://www.cnbc.com/2009/10/15/will-bofa-earnings-move-shares-let-alone-the-market.html | Considering investors appear to have heightened expectations for banks, what should you expect when Bank of America reports earnings on Friday?It's hard to ignore the fact that shares of BofA sold off Thursday, ahead of results, with investors apparently growing concerned that earnings might not be as dazzling as needed to move shares higher.
Negative sentiment seems to have picked up steam after rivals Goldman and Citigroup were unable to satisfy the Street with their numbers – though both banks produced great results.
"The blowout number that JPMorgan had Wednesday ... raised expectations," explains Peter Jankovskis of Oakbrook Investments. And now good earnings just aren’t good enough. They need to be great.To make the situation even more fragile, on Thursday Bank of America said more customers fell behind on payments and Credit Suisse forecast losses will mount for at least another year.All that sounds rather bearish. But there's optimism too.On the bullish side of things, Wells Fargo recently upgraded BofA to Outperform from Market Perform, with a target range of $24-$27 saying BofA trades "at a deep discount to peers."
And on Fast Money’s Halftime Report Eugene Profit of Profit Funds expressed optimism that results generated by the Merrill Lynch unit could wow the crowds.
VIDEO0:0000:00Bank of America Earnings
But remember Merrill isn't as active in the fixed income markets as Goldman or JPMorgan are, says Paul Miller of FBR Capital Markets. And that's what generated their gains.All things considered, what’s the trade?I don’t know if there’s a lot more gas in this stock no matter what they report, says Paul Miller, FBR Capital Markets. I expect BofA will trade flat for the time being.I agree with Paul, concurs Pete Najarian. It seems like the gas is coming out of the tank.BofA has more exposure to the consumer that almost any other bank, adds Tim Seymour. I’m cautiuous.
I’d take the other side of that trade, counters JoeTerranova. I think BofA goes to $20 before it comes down.
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .Trader disclosure: On October 15, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT): Terranova Owns (SUN), (OIH), (HOC), (HES), (GOOG), (IUYG), (OHI), (FTO): Terranova Is Short (GRMN), (CCL): Najarian Owns (BX) Calls; Najarian Owns (DELL) Call Spread; Najarian Owns (GE) Calls; Najarian Owns (GOOG) Nov. Calls, Is Short (GOOG) Oct. Calls; Najarian Owns (HMY) Calls; Najarian Owns (IBM) Nov. Calls, Is Short (IBM) Oct. Calls; Najarian Owns (LAZ), Is Long (LAZ) Puts, Is Short (LAZ) Calls; Najarian Owns (MYL) Calls; Najarian Owns (RIMM) Call Spread; Najarian Owns (STX) Call Spread; Najarian Owns (TEVA); Najarian Owns (YHOO) Call SpreadGE Is The Parent Company Of CNBCNBC Universal Is The Parent Company Of CNBCCNBC.com with wires
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594aae5f37838423230bed8cb78fa054 | https://www.cnbc.com/2009/10/15/your-first-move-for-friday-october-16th.html | Here’s our Fast Money Final Trade. Our gang gives you tomorrow’s best trades, right now.
Tim Seymour suggests long Anheuser-Busch InBev .
Guy Adami prefers long Apache .
Joe Terranova recommends longoil services stocks .
Pete Najarian thinks Seagate is a buy.Click here to see other Final Trade posts.
______________________________________________________Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! Prefer to keep it between us? You can still send questions and comments to .Trader disclosure: On October 15, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT): Terranova Owns (SUN), (OIH), (HOC), (HES), (GOOG), (IUYG), (OHI), (FTO): Terranova Is Short (GRMN), (CCL): Najarian Owns (BX) Calls; Najarian Owns (DELL) Call Spread; Najarian Owns (GE) Calls; Najarian Owns (GOOG) Nov. Calls, Is Short (GOOG) Oct. Calls; Najarian Owns (HMY) Calls; Najarian Owns (IBM) Nov. Calls, Is Short (IBM) Oct. Calls; Najarian Owns (LAZ), Is Long (LAZ) Puts, Is Short (LAZ) Calls; Najarian Owns (MYL) Calls; Najarian Owns (RIMM) Call Spread; Najarian Owns (STX) Call Spread; Najarian Owns (TEVA); Najarian Owns (YHOO) Call SpreadGE Is The Parent Company Of CNBCNBC Universal Is The Parent Company Of CNBC
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b61e150c06bccd6904ef8f607ec69d14 | https://www.cnbc.com/2009/10/16/20-Stocks-with-the-Biggest-Potential-To-Drop-(Oct-2009).html | 20 Stocks with the Biggest Potential To Drop (Oct 2009) | 20 Stocks with the Biggest Potential To Drop (Oct 2009)
It's the basic question when investing in a stock: is it on the way up or will it go down? To answer this question, Wall Street has developed numerous ways of attempting to predict what will happen, estimating various attributes tied to stock performance in order to determine what the future holds for a company's valuation.After dissecting the data, analysts following a particular stock produce a price target of where they believe the stock is headed. Out of the entire S&P 500, which stocks arSource: ThomsonReuters; Note: consensus analyst estimates as of 12/11/09.
It's the basic question when investing in a stock: is it on the way up or will it go down? To answer this question, Wall Street has developed numerous ways of attempting to predict what will happen, estimating various attributes tied to stock performance in order to determine what the future holds for a company's valuation.After dissecting the data, analysts following a particular stock produce a price target of where they believe the stock is headed. Out of the entire S&P 500, which stocks are analysts expecting to have the biggest price drops? Here's the top 20, according to ThomsonReuters (as of market close on 10/16/09).Click ahead to find out!By Ariel Nelson & Paul ToscanoPosted 16 Oct 2009
Price Target: $32.50Closing Price (10/16): $38.70Potential to Drop: -14.0%
Price Target: $32.50Closing Price (10/16): $38.70Potential to Drop: -14.0%Get AVY Real-Time Quote
Price Target: $9.58Closing Price (10/16): $11.28Potential to Drop: -15.1%
Price Target: $9.58Closing Price (10/16): $11.19Potential to Drop: -14.4%Get HST Real-Time Quote
Price Target: $46.31Closing Price (10/16): $54.57Potential to Drop: -15.1%
Price Target: $46.31Closing Price (10/16): $54.57Potential to Drop: -15.1%Get CAT Real-Time Quote
Price Target: $35.50Closing Price (10/16): $42.74Potential to Drop: -16.9%
Price Target: $35.50Closing Price (10/16): $41.96Potential to Drop: -15.4%Get CTXS Real-Time Quote
Price Target: $61.17Closing Price (10/16): $71.83Potential to Drop: -14.8%
Price Target: $61.17Closing Price (10/16): $72.73Potential to Drop: -15.9%Get WHR Real-Time Quote
Price Target: $55.78Closing Price (10/16): $65.89Potential to Drop: -15.3%
Price Target: $55.78Closing Price (10/16): $66.53Potential to Drop: -16.2%Get MTB Real-Time Quote
Price Target: $17.40Closing Price (10/16): $20.32Potential to Drop: -14.4%
Price Target: $17.40Closing Price (10/16): $21.17Potential to Drop: -17.8%Get BJS Real-Time Quote
Price Target: $4.57Closing Price (10/16): $6.08Potential to Drop: -24.8%
Price Target: $4.57Closing Price (10/16): $5.74Potential to Drop: -20.4%Get AMD Real-Time Quote
Tie
Price Target: $8.17Closing Price (10/16): $10.17Potential to Drop: -19.7%
Price Target: $8.17Closing Price (10/16): $22.15Potential to Drop: -20.5%Get TIE Real-Time Quote
Tie
Price Target: $17.61Closing Price (10/16): $22.84Potential to Drop: -22.9%
Price Target: $17.61Closing Price (10/16): $22.15Potential to Drop: -20.5%Get LXK Real-Time Quote
Price Target: $27.97Closing Price (10/16): $33.97Potential to Drop: -17.7%
Price Target: $27.97Closing Price (10/16): $35.38Potential to Drop: -20.9%Get HOT Real-Time Quote
Price Target: $6.50Closing Price (10/16): $8.31Potential to Drop: -21.8%
Price Target: $6.50Closing Price (10/16): $8.48Potential to Drop: -23.3%Get NYT Real-Time Quote
Price Target: $25.64Closing Price (10/16): $32.71Potential to Drop: -21.6%
Price Target: $25.64Closing Price (10/16): $33.74Potential to Drop: -24.0%Get WFMI Real-Time Quote
Price Target: $21.00Closing Price (10/16): $24.64Potential to Drop: -14.8%
Price Target: $21.00Closing Price (10/16): $27.86Potential to Drop: -24.6%Get HOG Real-Time Quote
Price Target: $11.07Closing Price (10/16): $15.30Potential to Drop: -27.7%
Price Target: $11.07Closing Price (10/16): $15.07Potential to Drop: -26.6%Get AIV Real-Time Quote
Price Target: $2.94Closing Price (10/16): $4.46Potential to Drop: -34.1%
Price Target: $2.94Closing Price (10/16): $4.27Potential to Drop: -31.2%Get EK Real-Time Quote
Price Target: $25.00Closing Price (10/16): $35.63Potential to Drop: -29.8%
Price Target: $25.00Closing Price (10/16): $36.60Potential to Drop: -31.7%Get HAR Real-Time Quote
Price Target: $46.40Closing Price (10/16): $69.72Potential to Drop: -33.4%
Price Target: $46.40Closing Price (10/16): $70.08Potential to Drop: -33.8%Get SHLD Real-Time Quote
Price Target: $4.63Closing Price (10/16): $7.42Potential to Drop: -37.7%
Price Target: $4.63Closing Price (10/16): $7.48Potential to Drop: -38.2%Get ODP Real-Time Quote
Price Target: $23.50Closing Price (10/16): $44.53Potential to Drop: -47.2%
Price Target: $23.50Closing Price (10/16): $43.20Potential to Drop: -45.6%Get AIG Real-Time Quote
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b5126782483793cd0560942da4c8c96f | https://www.cnbc.com/2009/10/16/3-traditional-best-in-class-stocks-chief-investor.html | 3 Traditional ‘Best in Class’ Stocks: Chief Investor | 3 Traditional ‘Best in Class’ Stocks: Chief Investor
Stocks slid at the open on Friday after two consecutive trading days of the Dow closing above 10,000. So where should investors be looking now? Kent Croft, CIO and portfolio manager at Croft Value Fund, shared his market strategy. (See his stock picks, below.)
VIDEO0:0000:00Investing in Value
“The markets are up a lot since March and the perceived riskier names have had the biggest increase,” Croft told CNBC.
“But where we’re finding value these days is in some of the larger traditional growth names that are best in class—and are still selling at pretty reasonable valuations.”
CNBC Data Pages:
Dow 30 Stocks—In Real Time Where's the US Dollar Today?Track the VIX Here
Croft said investors should adopt a “barbell-type approach” and expose their portfolios to the names that have "leverage to the continued improvement in the economy."
Croft's Picks:
Lowe's
Cisco
Baxter International
More Market Intelligence:
Start Trimming Back on Equities: Market ProThese Large-Cap Techs Will Rule 2010: ManagerI Still Like Financials: Chief Investor
______________________________CNBC Slideshows:
Million Dollar Home Price Reductions
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Disclosure:
Croft owns shares of the CLVFX Fund, which owns shares of LOW, BAX, CSCO.
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Disclaimer
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320359162f52d9cb597615c5873fcac0 | https://www.cnbc.com/2009/10/16/4-tips-to-wow-your-employees.html | 4 Tips To Wow Your Employees | 4 Tips To Wow Your Employees
Ok, this post was not my idea — it came from my boss and since today is National Boss Day, well, you know — gotta do what you gotta do.
Bosses, the good ones and those who are uh, "aren't," are under pressure and in the spotlight today. A new national survey of employees found a lot of employees are not happy campers and they don't like their supervisors.
Employees think their bosses are unfair, impatient and uninspiring. Adecco Group's survey found 53 percent of the respondents believe their boss is dishonest and a whopping 76 percent of them say their boss lacks motivational skills.
There was some good news - despite all their grousing, the majority of those asked said they wouldn't take your job in a million years.
Figures.
Guest Author Blog
This guest post is for you - the one sitting in the corner office, feeling those sharp stabbing pains in your back and yet, still feeling the pain of your employees.
Build Morale While You Downsize? 4 Tips To Stay Connected To Your Staff by Joe Takash author of "Results Through Relationships: Building Trust, Performance and Profit Through People"
Results Through RelationshipsResults Through Relationships
Last week I addressed 200 employees as the keynote speaker of an annual staff meeting in San Francisco. A
fter I finished, Mike, the company president, took the stage and answered questions that had been previously submitted.
One question addressed the elephant the sits in the middle of too many corporate boardrooms:
“Will there be more layoffs?”
He paused and looked up and said, “I wish I could look you in the eyes and tell you no, but I can’t. Unfortunately, there will be layoffs because right now the work just isn’t there.”
As a professional speaker, I even felt the punch to the gut and even a bit fraudulent. (“Joe, come on in and build morale while we downsize our staff”).
Vote Now - Do You Like Your Boss?
Ironically, the cocktail hour at the conclusion of the content portion of the meeting had a triumphant energy to it. People seemed upbeat, almost relieved to a certain extent. I asked one of the audience members how she viewed the meeting and she replied, “It was really good. Of course, I hope I survive the next round of layoffs but I really appreciate top management being up front and honest with us.”
Slideshow: Best American CEOs of All Time
Regardless of how lean and challenging the economic crunch may be, the most crucial foundation for successful workplace environments remains the same: Trust. In good times or bad, the common link to workplace performance is whether or not people are being told the truth. The less information they are provided, the more quickly trust will erode.
4 tips to stay connected with staff in these times are as follows:
1. Be generous about dispersing information: As anxiety and uncertainty climbs with staff members, so does resentment and other counterproductive emotions. Much of this can be relieved, even prevented, by providing a roadmap of what you know and what you do not. And do so frequently. Similar to admitting fault or apologizing, proactively providing information demonstrates a concern for the personal and professional well being of employees. 2. Make time to listen: Poor listening is one of the biggest complaints in the workplace and the downfall of many companies because leaders don’t lock in to what employees want and need. If there is constant questioning like, “Why are their pay cuts?” or “Are we going to lose are biggest client?,” you have a pattern which needs to be addressed. Process-focused managers will often never take the time to learn the concerns of staff or simply ignore them. If you want to improve the condition of your organization, take time to ask questions and truly listen to what your people want to know.
3. Continue to develop skills: Even if the budget for training and development isn’t there, the ability to pass on knowledge and build skills remains omnipresent. In fact, bosses should communicate that you want to focus on strengths and well as crucial growth areas of every staff members. As part of the ongoing need for productivity, mentoring and coaching showcases leadership, develops stronger skilled employees while upping performance. 4. Increase the attaboys: At our core, we still desire recognition and positive reinforcement for the results we achieve and efforts we make. Many employees may not show it, but they want it. Whenever possible, try to keep attitudes positive and the words, tone of voice and appreciation for team spirit high. It may seem counter-intuitive to be upbeat in down times, but in the words of one of the greatest leaders of all time, John Wooden, “Things work out best for those who make the best of how things work out.”
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Joe TakashJoe Takash
Joe Takash, a behavior strategist is the author of the newly released "Results Through Relationships: Building Trust, Performance and Profit Through People," as well as a sought-after media resource and keynote speaker.
As the founder of performance management firm Victory Consulting, Joe has worked with clients like American Express, Prudential, Century 21 and General Motors.
For more information, please visit, www.JoeTakash.com
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5534ad7fffa31c1354614e3f58bc9d6b | https://www.cnbc.com/2009/10/16/another-black-eye-for-wall-street.html | Another Black Eye For Wall Street | Another Black Eye For Wall Street
Galleon is another black eye for Wall Street—but could it be argued that these are outliers? OK, you can bring up Bayou, but couldn't it be argued that most managers are ethical?
Billionaire Among 6 Charged With Hedge Fund Insider Trading
I think that is true, but don’t expect anyone to argue that position. Cynics argue that the big traders of the world will always get the "first call" on something from a broker trying to make a name, that when you reach a certain level of success, greed is still the driver of actions, that fees and profits are too rich, the incentive to cheat is too great.
It will certainly renew calls for more regulation for hedge funds and tighter accountability, but will that make a difference? These insider trading accusations were accomplished with...a cell phone.
Still don't kid yourself--the government is coming down with a heavy hand because they were obviously embarrassed by the Madoff scandal.
Slideshow: A Rogues Gallery of Financial Crime
Whatever happens, hedge funds should not be forced by regulation to reveal their trade secrets--don't force them to publish their holdings on a public site. That information is owned by the investors.
One last question that the Street is asking: who is the FBI's confidential witness?
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The Dow 30 in Real TimeThe CNBC Stock Blog
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Questions? Comments? tradertalk@cnbc.com
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c9de296d7194177326a42af1e49b54cf | https://www.cnbc.com/2009/10/16/balloon-boy-not-your-average-business-story.html | Balloon Boy: Not Your Average Business Story | Balloon Boy: Not Your Average Business Story
Well, Balloon Boy was a little overblown yesterday, huh?
Nevertheless, remarkable events like that (well, at the time it was remarkable) bring up a recurring dilemma in business news — should you pay attention to a breaking general news event or not?
Some events are no-brainers because they are so traumatic and far-reaching that they will have reverberations throughout every aspect of the world, business and otherwise. 9/11, for
example.
But others are a little more debatable.
The miraculous Hudson landing last January; an attention-getting heroic event, no doubt, but pretty tangential to business news.
Michael Jackson's death.
The winner of the U.S. Open.
Of course, you could find ways to justify things. Jackson's estate is major money (well, sort of). Golf is a mainstay of the CNBC demographic. Airlines are a critical business industry. Given the "Wife Swap" connection and the dubious publicity surrounding the event, we could probably get a money angle on Balloon Boy if we tried hard enough.
Still, you have to make the coverage call as the event is breaking. And your platform affects the choice. It's hard to pass up good television. On the other hand, does that mean giving up covering other important things? And will the breaking news coverage turn out to be worthwhile? In terms of actual "what's important" journalism newspapers, so often labeled as obsolete, have the advantage. Time allows you to bring perspective.
Lucky for Web sites like ours, we can present multiple news-offerings. Covering the balloon's flight yesterday, which we did, didn't mean sacrificing our market coverage or ignoring the business news of the day. We could do it all and let readers decide what they wanted to pay attention to.
So did surfers come to CNBC.com for their Balloon Boy coverage? Nah ... our traffic took a significant dip during that time, in fact.
But at the time it was remarkable. So we had it.
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ff5a6385345b28b5f8ee85da9b1965bd | https://www.cnbc.com/2009/10/16/behind-the-money-traders-fret-earnings-cant-keep-up-recordbreaking-beat-pace.html | BEHIND THE MONEY: Traders Fret Earnings Can't Keep Up Record-Breaking Beat Pace | BEHIND THE MONEY: Traders Fret Earnings Can't Keep Up Record-Breaking Beat Pace
With just 61 members of the S&P 500 reporting, it certainly is early in this earnings season. But at this moment in time, it is the best earnings season ever on record. You heard that right. Of the companies that have reported, 79 percent of them have put out profits that surpassed analyst estimates, according to the good folks at Thomson Reuters. If that figure holds up when the rest of the index members report, it will pass the previous 'beat' record for a quarter of 73 percent. That record occurred during two previous earnings seasons since Thomson started keeping the data in 1994: the second quarter of this year and first quarter of 2004.It's quite impressive that the third quarter results are surpassing expectations by this magnitude, considering that the S&P 500 has jumped 17 percent since the quarter began and that the Dow has now surpassed the 10,000 milestone that makes TV producers like me and closet-indexing money managers tingle with joy inside. One would have thought it would be tougher to surprise analysts again in this already bullish environment.
But before you buy that Dow 10,000 hat currently being sold on the NYSE's web site and start buying more of this market, consider that this record-breaking beat figure has market seers like Pete Najarian of Optionmonster.com and Louis Navellier of Navellier.com more concerned than happy."It worries me that we've seen the best already report just about," said Najarian. "The beats we've seen have been legitimate for sure, but now the bar has been raised." The Fast Money trader also points to the CBOE Options Volatility Index, the so-called fear gauge, which has fallen to its lowest level of the year. The VIX, which measures the amount of protective puts being purchased vs. the number of bullish call options, is showing that investors have become far too complacent with this market and perhaps are setting themselves up for some negative surprises the rest of the season, according to Najarian.
Pete is getting flat in many of his trades and buying puts to protect himself in stocks he still wants to own for the long haul like Lazard .So with Apple , Microsoft and Pfizer among the 439 other companies left to report in the S&P 500, when will we have seen the best?Navellier, a widely-followed growth investor and observer of earnings season, said this week that you typically get the best market reaction out of companies that report early. He recommended this week buying Apple, which reports Monday after the bell. As one of the few companies illustrating true revenue growth, Apple should still make investors happy, according to Navellier, but the rest of earnings season may struggle to live up to the Dow 10,000 euphoria.So it's on pace to be the best earnings season ever. Sit back and enjoy it this weekend. But after Apple reports, you may want to buy some puts for protection in case the rest of the index can't live up to the earnings bar raised by the likes of Goldman Sachs and Intel this week.
______________________________________________________Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! If you'd prefer to make a comment but not have it published on our website send your message to .Trader disclosure: On Oct. 16th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (HGSI) Call Spread; Najarian Owns (XLF) Calls; Najarian Owns (YHOO) Call Spread; Najarian Owns (BAC); Najarian Owns (WFT) Calls; Grasso Owns (ASTM), (BAC), (C), (COST), (PRST), (V), (WMT), (FAZ), (XLF), (AAPL); Terranova Owns (SUN), (OIH), (HOC), (HES), (POT); Terranova Is Short (GRMN), (CCL)GE Is The Parent Company Of CNBCNBC Universal Is The Parent Company Of CNBCFor Steve Grasso:Stuart Frankel And Its Partners Own (AIZ)Stuart Frankel And Its Partners Own (CUBA)Stuart Frankel And Its Partners Own (GERN)Stuart Frankel And Its Partners Own (MSFT)Stuart Frankel And Its Partners Own (NWS.A)Stuart Frankel And Its Partners Own (NXST)Stuart Frankel And Its Partners Own (NYX)Stuart Frankel And Its Partners Own (PDE)Stuart Frankel And Its Partners Own (PRST)Stuart Frankel And Its Partners Own (RDC)Stuart Frankel And Its Partners Own (ROK)Stuart Frankel And Its Partners Own (TLMStuart Frankel And Its Partners Own (XOM)Stuart Frankel And Its Partners Own (XRX)Stuart Frankel And Its Partners Own (SDS)For Joe TerranovaTerranova Works For (VRTS)Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.Virtus Investment Partners Owns More Than 1% Of (XLY)Virtus Investment Partners Owns More Than 1% Of (CAL)Virtus Investment Partners Owns More Than 1% Of (CLB)Virtus Investment Partners Owns More Than 1% Of (DLR)Virtus Investment Partners Owns More Than 1% Of (EXR)Virtus Investment Partners Owns More Than 1% Of (XLI)Virtus Investment Partners Owns More Than 1% Of (IGE)Virtus Investment Partners Owns More Than 1% Of (XLB)Virtus Investment Partners Owns More Than 1% Of (DBA)Virtus Investment Partners Owns More Than 1% Of (DBV)Virtus Investment Partners Owns More Than 1% Of (UA)For Mike KhouwCantor Fitzgerald & Co. Is A Market Maker In (AAPL)Cantor Fitzgerald & Co. Is A Market Maker In (MSFT)Cantor Fitzgerald & Co. Is A Market Maker In (YHOO)
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f06659fd3e2825732b4e0688859498ad | https://www.cnbc.com/2009/10/16/call-of-shamevote-now.html | Call Of Shame—Vote Now | Call Of Shame—Vote Now
Call of ShameCNBC.com
As much as I considered submitting only one nomination—the Heene family—I decided that they shouldn't stand alone. In fact, I'm a pretty lousy parent myself sometimes. So here's a broader look at this week's shameful activity as it relates to money. Vote for your favorite at the bottom.
FALCON CREST
Let's hope the attention around Falcon Heene has crested. I was as obsessed as anyone with the story yesterday, Tweeting away about developments. The story just got weirder as the day progressed. Turns out the family had appeared not once, but twice, on ABC's "Wife Swap", where it was clear the kids have never benefited from an open palm making contact with a rear end. Their rap videos are on YouTube. Obviously, this is a family that likes to make money being in the limelight, but that doesn't necessarily mean this was a publicity stunt. However, what is shameful is that even before Falcon was found safe, others were already trying to capitalize on the saga. "Go Falcon" T-shirtsimmediately went on sale. Funny now. Not funny if the kid had ended up dead.
JON & HATE, PLUS MORE HATE
Speaking of parenting, TLC, owned by Discovery Communications, is suing Jon Gosselin for breach of contract. Even as the network has dropped Gosselin's name from the show he's starred in for two years with his now estranged wife and eight kids, a contract is a contract. Gosselin allegedly broke the contract's exclusivity by appearing on other programs for pay, and he may have given away show secrets. Here's my question—does someone turn into a jerk overnight? Did no one see this coming?
FOUL!
And speaking of couples in trouble, Frank and Jamie McCourt announced they've separated...THE VERY WEEK THE DODGERS TAKE ON THE PHILLIES TO WIN A SHOT AT THE WORLD SERIES. They couldn't wait? I mean, their massive investment is about to pay off! The McCourts bought the Dodgers in 2004 for $430 million. Well, at least Frank McCourt did. This is where things are starting to get ugly. The Los Angeles Times reportsthat while the couple has not filed for divorce, they're already disagreeing over who actually owns the team. McCourt says he does, Mrs. McCourt says they both do. According to the Times' Bill Plaschke, both McCourts were in their box at Dodger Stadium last night...with their attorneys. Oh, by the way, the Dodgers lost. Thanks.
NOT VERY STIMULATING
You and I helped finance $787 billion to stimulate the U.S. economy. For that we've gotten 30,000 jobs. That's $26,233,333 per job. I want that job. Actually, the federal report says the job listings cover only a small portion of the total package-about $16 billion awarded to contractors, who've actually spent about $2 billion. Fair enough. So... eight months after passing the stimulus bill, we only have proof of $2 billion being spent, to create thousands of jobs.
SOCIAL SUPERSECURITY
There will be no cost of living increase for Social Security recipients this year. That's because prices aren't going up. They've actually gone down. Nevertheless, the President wants to give tens of millions of senior citizens, veterans, people with disabilities and retired railroad workers (what?) $250 cash to make it up to them. That's nice. Except if prices are going down, why do taxpayers have to cough up more money to retirees who actually have more spending power now than they did a year ago?
CALIFORNICATION
As dire as the U.S. economy has been, at least the feds can print money. You can't do that in California, though give us time, we'll think of a way. In a year where the red ink has threatened to sink the state into the Pacific, now we learn that CalPERS, the nation's largest public employee pension fund, wasn't minding the store. The fund is investigating an estimated $50 million in fees it paid over a five year period to a former board member who had the arduous task of recommending investments for CalPERS-including investments which performed poorly. Now because of the fund's shortfall, local governments (i.e., taxpayers) will be forced to make up the difference in pension contributions this year.
Questions? Comments? Funny Stories? Email
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b3b699668b236f3974ae71de39da7fab | https://www.cnbc.com/2009/10/16/closing-bell-access.html | Closing Bell Access | Closing Bell Access
A very special edition of Closing Bellcoming up today, where Maria Bartiromo will be broadcasting live from The Economist's Buttonwood Gathering at Pace University. We'll be addressing the theme "Fixing Finance" with our exclusive line-up of guests.
Treasury Secretary Timothy Geithner goes one-on-one interview with Bartiromo and hear what he has to say about the future of capitalism.
Maria Bartiromo's Blog - My Interview with Sec Geithner
Roger Altman, former Deputy Treasury Secretary and Chairman of Evercore Partners will discuss his concerns about the dollar's decline and what Washington needs to do to restore confidence in the greenback.
We'll also get perspective on the shape of the housing recovery with Robert Shiller of Yale University. Plus, restoring trust and confidence in the market with Deven Sharma, President of Standard & Poor's. He'll tell us what changes his ratings agency has made after being under fire to giving AAA ratings to sub-prime mortgage bonds just before that segment of the market collapsed.
We'll also have an exclusive interview with Jeff Kindler, Chairman and CEO of Pfizer , as the company wraps up its acquisition of Wyeth. With the biggest M&A deal of the year in its bag, Kindler will discuss the road ahead for the pharmaceutical giant and whether he sees more deals in the drug sector. On a week where the Dow hit the psychological 10,000 level, we'll get you set up for the new trading week with David Darst, Chief Investment Strategist at Morgan Stanley Smith Barney and David Kelly, Chief Market Strategist at JPMorgan Funds.
Also on deck, Lucas Rosen of Scottenfeld Group with the investor perspective on the markets.
Liza Tan contributed to this article
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The Dow 30 in Real TimeThe CNBC Stock Blog
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Questions? Comments? Write toinvestoragenda@cnbc.com
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d9dc981b40e04f110e20a55278d5a972 | https://www.cnbc.com/2009/10/16/fed-rates-will-hit-775-by-2011-portfolio-manager.html | Fed Rates Will Hit 7-7.5% by 2011: Portfolio Manager | Fed Rates Will Hit 7-7.5% by 2011: Portfolio Manager
Stocks continued to slide on Friday on some weak earnings reports that eclipsed strong results from big techs. John Lekas, CEO and portfolio manager of Leader Capital, and Scott Redler, chief strategic officer at T3live.com, shared their market views.
VIDEO0:0000:00Investing in Today's Market
“You should take your money off the table and go into fixed income,” Lekas told CNBC, adding that earnings have mostly been “disappointing.”
“The cost of capital—meaning the interest expense to corporations—is going to weigh very heavily on them,” explained Lekas.
“It used to be that companies that had leverage can generate a lot more cash flow and earnings. That shifted—and if you’re going to be in the equity markets or fixed income, you have to be a little discerning.”
CNBC Data Pages:
Dow 30 Stocks—In Real Time Oil, Gold, Natural Gas Prices Now Where's the US Dollar Today?
Lekas said the reason oil prices are up is largely due to the weak dollar.
“The dollar is going to go lower and it’s going to put the Fed in a reactionary position to raise rates to support the currency, and that is going to be another problem for the market—in addition to the oil problem,” he said.
“I think the [Fed funds] rate will go to 7 to 7.5 percent by 2011.”
In the meantime, Redler said it is important to build a base in the markets to prove that stocks can hold higher, before continuing to extend to the year-end.
More Market Intelligence:
Art Cashin: Rally's Market Top Warning Signs3 ‘Best in Class’ Stocks: Chief InvestorStart Trimming Back on Equities: Market Pro
“As long as you book some profits and hold some for the longer term, you can add cash flow trades to your portfolio and also stay invested,” he suggested.
Redler said that if oil continues its surge and hits $90, it will scare off consumers and sustaining higher market levels will become questionable.
“It will be like an extra tax that they have to pay instead of going to the grocery store,” he said. “[And] it means that we need time to figure out whether we can sustain these levels to move higher and you have to be very strategic in your investing because this recovery will take place and can be sustained but it’s going to take time.”
Redler Likes:
Apple
Intel
Gold Comex (DEC)
Natural Gas (NOV)
Lekas Likes:
30-Year T-Bond
Google
Intel
______________________________CNBC Slideshows:
World’s Highest Corporate Tax Rates
______________________________ Disclosures:
No immediate information was available for Lekas or Redler.
______________________________
Disclaimer
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353a24aa6042390f252b882d0be0374d | https://www.cnbc.com/2009/10/16/forget-the-dow-and-sweat-the-dole.html | Forget the Dow - and Sweat the Dole | Forget the Dow - and Sweat the Dole
For the past few months, the media has been watching the Dow Jones Industrial Average the way a hypochondriac checks his thermometer. And the higher the Dow's temperature goes, the more we need to sweat.
The Dow's autumnal visit to 10,000 is opposite in mood and cause to the springlike euphoria that marked the same milestone in March 1999. Part of the reason we can't rejoice is that we are now cursed with self-awareness. The tech bubble broke our hearts, and the mortgage bubble broke our spirits. As Eric Jackson, the founder of hedge fund Ironfire Capital, says: We’ve lost our innocence. “My apprehension is more like living in a post-9/11 world," he explains. "I'm more skeptical, vigilant, fearful."
Back in 1999, Dow 10,000 was a symbolic victory for American capitalism. Now we see the moment as a sigh-inducing win for quasi-socialism. It is an irrelevant milestone because we are just one part of a giant, increasingly intertwined global economy. Unlike in 1999, when the United States was center stage, our economic importance has slipped. To borrow a line from Casablanca, it doesn't take much to see that the problems of 30 little companies don't amount to a hill of beans in this crazy world. We are in a market of magical thinking, detached from economic reality. Unemployment is over 10 percent nationally and government unemployment benefits are running out. There isn't an economic indicator out there that will tell you good news.
Pervasive taxpayer support props up every sphere of the markets. Government guarantees are keeping many major corporations—and all the capital markets—limping along. Our major banks are effectively nationalized and still hold many of the toxic assets that kicked their stock prices to the curb during the crisis. Interest rates are at zero, which means companies can get cheap financing, which in turn supports nearly every kind of stock and bond—and we still complain that the Fed may have pitched the rate too high. Housing prices are balanced precariously on the health of government support to the Federal Housing Administration, Fannie Mae, and Freddie Mac. The government is so indebted that it is trapped in some fiscal version of an infinite-loop Escher painting, bailing out its own bailouts. And then there is the commercial real-estate crash that is spinning towards us. We're not even trying to stand on our own. We can't.
Consider the Dow's development since 1999. Some of its biggest components from back then are off the Dow and on the dole. Back in 1999, the Dow companies included Citigroup and General Motors. In 2004, American International Group joined the group. Now fast forward. In September 2008, the Dow's editors plucked AIG off after it became a ward of the state. In June, the Dow's editors kicked both Citigroup and GM out of the house.
_____________________________________More From The Big Money:
Banks are Dumping Their Riskiest Bankers. Will it Help?Why You Shouldn't Worry About China and the DollarHow to Fix Wall Street
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Confronted with the illogical psychology of markets, the best we can do is make the most of it. But as many will tell you, there's no reason to be energized by the Dow at 10,000. After yesterday's close, the index went back to hovering at 9,980 points. One lost decade later, the importance of 10,000 is not a tribute to our collective success. We're just relieved that the markets are no longer failing in that appalling way. Armageddon may be off the table. But all we have now is purgatory.
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5139f8bc8857dff609c8d48c55fef351 | https://www.cnbc.com/2009/10/16/friday-look-ahead-earnings-could-be-driver-for-stocks-bonds-and-dollar.html | Friday Look Ahead: Earnings Could be driver for Stocks, Bonds and Dollar | Friday Look Ahead: Earnings Could be driver for Stocks, Bonds and Dollar
Earnings reports from General Electric and Bank of America are the big numbers for markets Friday, and they matter nearly as much in the foreign exchange and Treasury markets as they do in the stock market.
Sharon Lorimer
Currency strategist David Gilmore said he's watching earnings news because of the impact on stocks, including after the bell results from Googleand IBM."That's what happens when the cost of money is next to zero," said Gilmore, market strategist at Foreign Exchange Analytics. Both tech heavy weights released better-than-expected profits after Thursday's bell. Both GE and Bank of America report ahead of Friday's open. "That's the only game in town," Gilmore said. There's not much data Friday morning. Industrial production is released at 9:15 a.m., consumer sentiment is reported at 9:55 a.m. and the Treasury's TIC data on international capital flows is issued at 9 a.m.Treasury traders too are focused on corporate earnings because they are driving the stock market higher, and that market is moving in tandem with risk assets, like commodities. It is also heading in the opposite direction of the wilting U.S. dollar. In fact, one Treasury desk's afternoon note Thursday looked like a run down from a stock desk, with a list assessing Thursday's major earnings reports.The Dow finished above 10,000 for a second day, rising 47 to 10062 Thursday. The S&P 500 was up 4 at 1096, just shy of the psychological 1100 mark.
GE Earnings Preview: Dow 10K: More Than Meets the Eye
Oil continues to bubble higher, reaching a year high of $77.58 per barrel, a gain of 3.2 percent. Gold, meanwhile slipped 1.3 percent to $1,049 per troy ounce.
Treasurys were under pressure, after weekly jobless claims data came in at 514,000, the lowest level of workers to file new claims since January. William O'Donnell of RBS said bonds appeared to be affected by some selling by foreign central banks. The dollar slipped to $1.4937 per euro, and the yield on the 10-year crept up to 3.472 percent.
The floundering dollar continues to feed inflation fears. Those worries cropped up in the widening gap between the yields on 2-year and 10-year notes, which reached 2.51 percent, the widest level in a month.
Obama Administration officials spoke in support of the dollar, in interviews with CNBC. Larry Summers, National Economic Council Director, repeated the U.S. official line that the strong dollar is in the national interest.Treasury Secretary Timothy Geithner, in an interview with Maria Bartiromo, went a bit further when she asked him about criticism about the U.S. dollar's reserve status. "I say this all the time.. that the dollar's role in the system confers special obligations and responsibilities on us as a country, and it is very important that Americans understand that we need to do everything possible to sustain confidence in our ability to keep inflation low and stable over time and to make sure we're getting our fiscal house in order. That's a really important thing to confidence generally. We take that very seriously, nobody more than me" he said.
Slideshow: Dow 10,000 - What Changed Since 1999
When asked what he was doing to keep the dollar strong, Geithner answered by saying he doesn't comment on foreign exchange markets, but he pointed to the fact that investors fled to the dollar and dollar assets during the height of the financial crisis."You saw the dollar rise when people were most concerned about he future of the world," he said. "And that is a very important thing. It's not something we can count on. It's something we can make sure we understand and we continue to foster, and again, we are going to to do that."
Yet, many in the markets believe the U.S. government is not now concerned about the dollar's fall and that it instead sees an advantage from the weak dollar's positive impact on exports. Another idea circulating among some traders is the view that the Fed could help the dollar even before it raises rates by continuing to unwind some of its programs.Kevin Ferry of Cronus Futures Management said the Fed is showing signs that it could pull back on some liquidity in the marketplace through repo agreements with primary dealers and others. Traders have said this type of activity could result in a rise in rates even without the Fed raising its target fed funds rate.Ferry added that if that's the case, there could be a positive impact on the dollar, which has been falling to new lows daily. Earnings Central So far this earnings season, the early going shows most S&P 500 companies beating estimates. As of Thursday morning, 80 percent of the 33 companies reporting had better than expected earnings.
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GE could be the biggest factor for stocks Friday morning, said Todd Leone of the Cowen equities desk."GE is big because as GE goes, the economy goes. We also have (options) expirations tomorrow, which we saw a little of today," said Leone.
General Electric, often seen as a barometer for the broader economy, is expected to earn $0.20 per share on revenues of $39.36 billion. GE holds a conference call ahead of the open, and investors are looking to see what GE will say about its finance arm. There is also interest in whether GE has anything to say about its discussions with Comcast about a deal for a majority stake in NBC Universal, parent of CNBC. Bank of America is expected to report a loss of $0.03 per share, on revenues of $27.70 billion.Bank of America Thursday said CEO Ken Lewis will give up his $1.5 million salary and other compensation for 2009. Lewis is also expected to repay the more than $1 million he was paid so far this year. Pay Czar Ken Feinberg is the one who suggested Lewis, under fire for his handling of the Merrill Lynch acquisition, give up his pay.
Stocks could get some help Friday from Google, which saw its shares rise after it reported profits of $1.64 billion or $5.13 per share. IBM stock though fell after it reported lighter than expected revenues of $23.6 billion. IBM's third quarter profit of $2.40 per share was better than the $2.38 per share expected. The company also raised its full year forecast.
— Questions? Comments?
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da7cdfd7ae622bf228104455249f7e36 | https://www.cnbc.com/2009/10/16/google-starts-to-bleedin-a-good-way.html | Google Starts to Bleed—In a Good Way | Google Starts to Bleed—In a Good Way
Google HeadquartersAP
Grab a hanky! Google's officially in nosebleed territory thanks to a Wall Street upgrade parade post earnings
The company's third quarter report Thursdaywas a blockbuster, and its guidance — yes, I know there wasn't any, but if you listen to CEO Eric Schmidt's comments, it certainly seems like he's talking about the future — was pretty stellar.
This is a company that blew past earnings expectations, leaving Wall Street in the dust, and careening its way back to its historic highs.
Still doubt it? Yes shares today are only - only? - up about 3 percent, but that takes the company to another new 52-week high, just shy of $550. And last night's report, along with its share reaction, is good enough for Google to command a slew of new targets.
Canaccord Adams is making the biggest splash with the firm slapping a Street-high, $700 target on Google, up from its $560. The firm rates shares a "buy," citing a reacceleration of growth. UBS raised to $635 from $580; Goldman Sachs also raises to $635; and FBR raises target to $680 after going to $660 just two days earlier.
The fact is, all this time Google has been a one-trick-pony, but it's been a helluva pony!
The slowdown in ad spending spurred Google to focus on software, like Android and Chrome, and Android appears poised to start paying some significant dividends. It still has a long way to go to catch the Nokia, Research in Motion, Microsoft and Apple numbers, but it's winning contracts, attracting developers and it can found on all the major carriers, including Verizon, AT&T (soon), Sprint and T-Mobile. Will Android supplant online advertising as Google's main revenue driver? No. Ever? No. But it doesn't need to. It'll drive more advertising and eyeballs, and that's what Google is after.
Slideshow: Evolution of Wireless Communication
This is a very young company, with bright minds and lots of money. It can afford to be patient, and think long term, and it can certainly afford to weather the vagaries on Wall Street. It can afford hubris and it can afford to eschew humility. None of this might sound good to investors focused on day-to-day or even quarter-to-quarter.
Google And The Competition
But with a report like last night's, in an economy like this one, investors simply can't argue the success and effectiveness of this management team. Long term, and even short term, Google is a force, and it seems not even Microsoft or Yahoo can reckon with it.
Coupons Via Cellphone: Whipping Up the Impulse Buy
Questions? Comments? TechCheck@cnbc.com
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36a8ca4d97b11a45254638c712a2e0e9 | https://www.cnbc.com/2009/10/16/halftime-report-is-fridays-selloff-overdone.html | Disappointing results from two Dow components sent stocks tumbling on Friday with financials leading the declines.
GE's weaker-than-expected revenue and Bank of America's loss reminded investors that businesses and consumers continue to struggle as the economy slowly recovers from recession. The results were a setback for the bulls as investors took profits after a strong run that saw major indexes hit new yearly highs and pushed the Dow industrials above 10,000 on Wednesday.
The negative sentiment driving Friday’s market action may have been amplified by JPMorgan and Intel, which breezed past estimates earlier in the week – and generated a belief that earnings season would largely be stronger-than-expected. So, are we in for a lackluster earnings season afterall or is Friday’s sell-off overdone?
VIDEO0:0000:00Fast Money Halftime Report
Instant Insights from the Fast Money traders
I think the sell-off is overdone, says Steve Grasso of Stuart Frankel. It seems to me that the pullback is an opportunity to buy -- especially in best of breed financials. I’d be a buyer of Goldman and maybe JPMorgan . You’ll thank yourself over the next couple of weeks.Although patterns in the S&P suggest that stocks may push to 1150 or even 1200, I’m not an aggressive buyer, counters Bill Strazzullo of Bell Curve. We’re close to the top of the range and I’d suggest unwiding positions rather than being an aggressive buyer at these prices. Don’t fade now, counters Steve Grasso. Hold onto your positions. You’ll regret being a seller. I expect to see a real chase for performance in November and December and I'd place my bets accordingly.
The Vix is down tremendously, counsels Brian Stutland of Stutland Equities. If you want to hold you positions I’d also buy some puts for downside protection. Right now they're fairly inexpensive.
I’ll be watching to see if investors become buyers of technology late in the session, adds Mike Gurka of Empower. There’s so much optimism surrounding this sector -- how tech trades is probably a good market ‘tell'.
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BANK OF AMERICA BIGGER LOSS THAN FORECAST
As we mentioned above, financials led the way lower after Bank of America posted a $1 billion third-quarter loss citing credit card and mortgage woes. The weakness from consumers eclipsed strength from BofA’s Merrill Lynch unit – $2.2 billion in profits.
What’s the bank trade?
It would be a mistake to lock in profits in financials, counsels Steve Grasso. I expect to see a real chase for performance in November and December and I'd place my bets accordingly.
I’m seeing dynamics in other parts of the world that suggests to me financials such as Goldman will do very well, adds Mike Gurka. I expect to see even better returns going forward.
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TOPPING THE TAPE: GOOGLE
Strong earnings from Google led to a series of analyst upgrades on Friday. Canaccord Adams said the company's shares could hit $700 a piece, a level not reached since December 2007 while Jefferies analyst Youssef Squali lifted his price target on the stock to $600 from $470.
These and other analysts interpreted earnings to mean on-line advertising is experiencing a turnaround and that Google is set to be the prime beneficiary.
Ga-Ga For Google: New Analyst Price TargetsCanaccord Adams: $700UBS: $635Goldman Sachs: $635FBR: $680
What’s the tech trade?
I’d play Google with options, counsels Brian Stutland, otherwise at these levels it becomes a terribly capital intensive trade. Personally I’d sell some put spreads around $550.
-----------COMMODITIES CHECK:OIL FALLS FROM YEARLY HIGHS
U.S. crude futures fell on Friday in choppy trading as a stronger dollar and a drop in consumer sentiment pulled oil back from an early high above $78 a barrel.
What’s the trade?
The charts should rule near term and despite the possibility of some pre-weekend profit taking today, I’d expect to see additional upside price follow through early next week with $78.25 representing the next significant upside target, says Jim Ritterbusch of Ritterbusch & Associates.
Addison Armstrong of Tradition Energy doesn’t quite agree. I’m doubtful that we’re going to break above $80, he says. This market looks like its overextended. If we break below $76.50 we could also break down to $76.25 pretty quickly.
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CALL THE CLOSE
Steve Grasso: I’m a buyer. I think the sell-off is overdone.
Mike Gurka: I’m a buyer. I see momentum coming down the pipleline.
Bill Strazzulo: I’m long into 1150 but then I'mgetting off the train.
Brian Stutland: I’m a buyer below Dow 10,000 and a seller above it.
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .Trader disclosure: On Oct. 16th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (HGSI) Call Spread; Najarian Owns (XLF) Calls; Najarian Owns (YHOO) Call Spread; Najarian Owns (BAC); Najarian Owns (WFT) Calls; Grasso Owns (ASTM), (BAC), (C), (COST), (PRST), (V), (WMT), (FAZ), (XLF), (AAPL); Terranova Owns (SUN), (OIH), (HOC), (HES), (POT); Terranova Is Short (GRMN), (CCL)GE Is The Parent Company Of CNBCNBC Universal Is The Parent Company Of CNBCFor Steve Grasso:Stuart Frankel And Its Partners Own (AIZ)Stuart Frankel And Its Partners Own (CUBA)Stuart Frankel And Its Partners Own (GERN)Stuart Frankel And Its Partners Own (MSFT)Stuart Frankel And Its Partners Own (NWS.A)Stuart Frankel And Its Partners Own (NXST)Stuart Frankel And Its Partners Own (NYX)Stuart Frankel And Its Partners Own (PDE)Stuart Frankel And Its Partners Own (PRST)Stuart Frankel And Its Partners Own (RDC)Stuart Frankel And Its Partners Own (ROK)Stuart Frankel And Its Partners Own (TLMStuart Frankel And Its Partners Own (XOM)Stuart Frankel And Its Partners Own (XRX)Stuart Frankel And Its Partners Own (SDS)For Joe TerranovaTerranova Works For (VRTS)Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.Virtus Investment Partners Owns More Than 1% Of (XLY)Virtus Investment Partners Owns More Than 1% Of (CAL)Virtus Investment Partners Owns More Than 1% Of (CLB)Virtus Investment Partners Owns More Than 1% Of (DLR)Virtus Investment Partners Owns More Than 1% Of (EXR)Virtus Investment Partners Owns More Than 1% Of (XLI)Virtus Investment Partners Owns More Than 1% Of (IGE)Virtus Investment Partners Owns More Than 1% Of (XLB)Virtus Investment Partners Owns More Than 1% Of (DBA)Virtus Investment Partners Owns More Than 1% Of (DBV)Virtus Investment Partners Owns More Than 1% Of (UA)For Mike KhouwCantor Fitzgerald & Co. Is A Market Maker In (AAPL)Cantor Fitzgerald & Co. Is A Market Maker In (MSFT)Cantor Fitzgerald & Co. Is A Market Maker In (YHOO)CNBC.com with wires
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3f6fbcdbf17dcb3438c100ced00b9c45 | https://www.cnbc.com/2009/10/16/halloween-has-gone-to-the-dogsand-other-emails.html | Halloween Has Gone to The Dogs—And Other Emails | Halloween Has Gone to The Dogs—And Other Emails
From the Funny Business email inbox this week...
About my blog on celebrating San Diego teachers(and being forced to buy a long gown), Jeff J. combined his reaction to that with the blog on BadCustomer.com:
"Keep your purple gown; don't banish it to the consignment shop. You'll need it for your next Emmy, for either the Dykstra interviews or (more likely) the Winkers jeans story...That aside, your 'bad customers' post reminds me of a current story here in Columbus: a woman offered to buy everyone clothes at a Burlington Coat Factory. She said won the lottery. She didn't. This story's a riot …literally."
As for making Santa Ynez the visual focal point for my storyon wine, Jim C. writes:
"You have the story for Santa Barbara on target. But they grow so few grapes there that they don't count. If 100 percent of the grapes fell on the ground in that area, who would care? The local grower and no one else. Price of grapes in the San Joaquin Valley, where 85 percent of the state's grapes grow have doubled this year and sales at the value end are BOOMING. If you want to do a grape story, go to Modesto, not to Los Olivos."
By the way, here's a cartoon from Doug Pike inspired by the wine biz:
Source: Doug Pike
HR wrote in about the fat police failing:
"We have to keep this 'fat food' dialogue going. We are not safe anywhere. The temptations to snack and over-indulge are in places where you don't even expect it. Auto parts store-- entire front counter next to check out dedicated to fast food snacks. Big box home improvement store-- outside the front exit door is a snack shack selling grilled burgers and dogs. Big box toy store-- one entire row of shelves dedicated to high carb and high sugar pre-packaged snacks. Local bank lobby-- free popcorn and lemonade. I can go on and on. There is no escape from the temptation around every corner."
About the mystery of how the NoHo drink wrappersended up around a can of Red Bull, Chad H. writes: "Jane, You seem credible enough…but you really didn't look into NoHo very professionally. I have tried it. It's real and very good. It works as advertised. It is not Red Bull nor is the Red Bull company involved in it in any manner. I hope and trust that when it is released and you can try it, you will then provide an truly credible story."
Finally, reader Jim A. apparently likes to dress up dogs for Halloween! And who wouldn't?! Here are some of his favorite photos:
Questions? Comments? Funny Stories? Email
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cbed0f8325d7648d6c290ba320a9a70d | https://www.cnbc.com/2009/10/16/hirschhorn-earnings-schmernings.html | Hirschhorn: Earnings Schmernings | Hirschhorn: Earnings Schmernings
VIDEO0:0000:00Hirschhorn: Earnings Schmernings
(Video: Market coach Doug Hirschhorn, PhD, discusses why earnings don't mean as much as we think they do.)
You snooze, you lose If you're waiting to find out the earnings before you make an investment in a company, you're already too late the party.
Listen to what the market is saying by watching what it's DO-ing Successful trading is about watching the price action and reacting to it. It's far less about trying to outsmart the markets.
TMI (Too Much Information) Earnings season is exciting to watch and fun to talk about, but so what? It just creates more confusion than clarity. My Advice: Pick a few companies in play and focus on them rather than spreading yourself too thin.
Mix it up a bit Here’s a news flash: Just because you have always traded US equities does not mean you should only trade them. In reality, there are lots of different ways to make lots of money, like metals, oil and currencies.
Think better, invest smarter.
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7c8c028d00c1db7d725e3bc3fc0b7b7a | https://www.cnbc.com/2009/10/16/job-growth-coming-not-doubledip-recession-jpmorgans-kasman.html | Job Growth Coming, Not Double-Dip Recession: JPMorgan's Kasman | Job Growth Coming, Not Double-Dip Recession: JPMorgan's Kasman
Treasury Secretary Timothy Geithner told CNBC in an interview that the U.S. economy will grow at a significant rate in the second half of this year and show positive growth in 2010 at a level that will begin to gradually bring down the unemployment rate. Is he right? Bruce Kasman, chief U.S. economist at JPMorgan, offered his insights.
VIDEO0:0000:00Measuring the US Economy
“I don’t think we’re going to have a double dip—I think we’re going to have a lift and carry,” Kasman told CNBC. “We’re growing at 3.5 to 4 percent now and I think we’re likely to sustain that.”
Kasman said the stimulus will help boost incomes, improve financial conditions and will ultimately boost jobs in a “more self-sustaining recovery.”
“The possibility of having continued support from inventories is very strong here,” he said.
Market Counterpoint:
Art Cashin: Rally Shows Market Top Warning SignsRecession Will Be 'Full-Blown Depression': Strategist
“We’re not restocking—we’re still destocking at over a $100 billion pace in the last quarter and we’re going to continue to see very significant support...as monetary policy continues to work through the system.”
U.S. consumer sentiment fell unexpectedly this month, according to reports on Friday, on persistent worries that the "dismal" state of personal finances would not recover quickly from the worst recession in decades.
“This was a disappointing report, but doesn’t change the trajectory, which is toward improvement,” said Kasman. “The improvement in consumer confidence is going to continue on a trend basis.”
CNBC Data Pages:Dow 30 Stocks—In Real Time Where's the US Dollar Today?Track Treasury Prices Here
______________________________CNBC Slideshows:
The 15 'Greenest' Companies in America
______________________________
______________________________Today's Top Gainers on the Dow*:
Kraft Foods
McDonald's
Boeing
Wal-Mart Stores
Procter & Gamble
* Top gainers as of this writing.
______________________________ Disclosures:
No immediate information was available for Kasman or his firm.
______________________________
Disclaimer
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