Traders Trade

Facebook Headed for Lower Opening

Tue, 22 May 2012 07:25:00 EST

Facebook [FB] is headed in the wrong direction again today. Facebook's shares are down nearly 4% in the pre-market. This would put Facebook well under its lowest point yesterday, $33.58. Facebook shares tumbled nearly 11% on Monday, which was the best day of the year, so far, for the Nasdaq. The embarrassing plunge followed Facebook's weak IPO on Friday, which only maintained its $38 IPO listing price because of huge help from underwriters.

Facebook still has an super high P/E of 78.59, so it could be a while before its shares find a bottom on the Nasdaq. Facebook was originally supposed to be listed at $28, but Facebook executives and bankers decided to bump the price up to $38 just days before the IPO. This price evaluation mistake will come at the expense of retail investors, who bought shares at $38 a share or more on Friday.

David Weidner calls Facebook "nothing but an embarrasment." Paul B. Farelll says Facebook could "destroy the U.S. economy." Facebook is going to need some good news soon to reverse this sell trend.

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Blueseed to Launch Floating Venture Capital Ship 12 Miles Off California Coast

Sat, 12 May 2012 14:00:00 EST

Blueseed is billed as a "visa-free technology incubator for startups." It is also billing itself as the "Googleplex of the Sea." It will be stationed 12 miles off the coast of California and will give foreign nationals a way to be close to Silicon Valley without holding a U.S. work visa. A FAQ on the Blueseed site says, "As a foreign national, to legally earn a paycheck in the United States, you would need a valid U.S. work visa. To live and earn a paycheck aboard the Blueseed vessel, you will only need a passport."

Blueseed will make money by charging for rent. Prices will be starting at $1,200/person/month. Blueseed says, " For comparison, the average monthly rent for a studio in San Francisco is $1750 as of October 2011, competition for apartments is fierce, and incubator spaces sell for $400-$650 per desk."

The first interview video is an interview with Blueseed's president and CEO. The second clip is an animation of the Blueseed concept. Take a look:

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Analyst Says Zuckerberg's Hoodie is a Mark of Immaturity

Tue, 8 May 2012 14:00:00 EST

Michael Pachter, an analyst for Wedbush Securities, told Bloomberg, that Zuckberberg's hoodie wearing ways is a "mark of immaturity." Pachter isn't sure Zuckerberg is the right guy to be running Facebook.

Zuckerberg was caught wearing a hoodie with a bizarre Illuminati-style insignia during an interview in 2010. An image of the hoodie can be seen here. An action figure, the Poking Inventor Action Figure, was also released that shows Zuckerberg wearing a hoodie. Take a look:

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Facebook Seeks $75 Billion to $95 Billion Valuation for IPO

Thu, 3 May 2012 16:00:00 EST

The Wall Street Journal reports that Facebook is seeking an IPO price range for $25 to $35 a share. This would give Facebook a valuation of $85 billion to $95 billion.

Bloomberg reports that the IPO will make Facebook's young founder, Mark Zuckerberg, 27, one of the world's richest people. He will still own 57% of the voting rights in Facebook, after the IPO, which is very unusual.

It will make Facebook the highest tech IPO ever. The biggest mystery about Facebook is not the strength of the IPO, but where it will be six months to a year after the IPO. Take a look:

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Apple Falls Over 10% in Ten Days

Fri, 20 Apr 2012 21:00:00 EST

Shares of Apple [AAPL] have fallen over 10% in the past ten days. News like Apple being sued by the U.S. government in an ebook price fixing scandal has not been helpful. Apple has asked for it to go to trial, but being associated with a scandal the centers around charging consumers more for a product is not good for them. Some of the drop could also be consumers taking profits after Apple's big climb this year. Despite the negativity, Goldman Sachs has increased its 12-month price target on the stock to $750, which would be a jump of over 30%. Take a look:

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Traders Trade Joins Pinterest

Thu, 12 Apr 2012 21:00:00 EST

Traders Trade has joined Pinterest, a social network that lets users create virtual pinboards. You can find Traders Trade on Pinterest here.

You can also get updates from us on Facebook, Google+ and Twitter.

image: Pinterest

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AOL to Sell 800 Patents to Microsoft for Over $1 Billion

Mon, 9 Apr 2012 15:00:00 EST

AOL has found a way to raise lots of money. They are going to sell 800 patents to Microsoft for $1.1 billion. TechCrunch says the patents sold relate to "advertising, search, content generation/management, social networking, mapping, multimedia/streaming and security." It also includes Netscape browser patents. AOL probably could have licensed some of these patents, but they wouldn't have got as much money.

The Wall Street Journal says AOL has been under pressure to do something with its patent portfolio. AOL's stock jumped over 40% on the news. Take a look:

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Apple Shares Plunge 9% on Mysterious Flash Crash, Then Recover

Fri, 23 Mar 2012 12:22:00 EST

Apple shares [AAPL] were halted after a sudden 9% plunge on a single trade. CNBC reports that shares of Apple went from $598.26 to $542.80 after a single trade of 100 shares.

After Apple began trading it recovered and was back near its previous price. The Street reports that the reason for the halt was listed as a reason code T7. You can find a list of reason codes here on Nasdaq's website.

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Apple Announces Dividend and Share Repurchase Program

Mon, 19 Mar 2012 14:11:00 EST

Apple announced plans to initiate a dividend today. Apple will also launch a share repurchase program starting later this year. Apple plans to initiate a quarterly dividend of $2.65 per share sometime in the fourth quarter of its fiscal 2012, which begins on July 1, 2012.

Tim Cook, Apple's CEO, said in a statement, "We have used some of our cash to make great investments in our business through increased research and development, acquisitions, new retail store openings, strategic prepayments and capital expenditures in our supply chain, and building out our infrastructure. You'll see more of all of these in the future. Even with these investments, we can maintain a war chest for strategic opportunities and have plenty of cash to run our business. So we are going to initiate a dividend and share repurchase program."

The Wall Street Journal reports that the news has already pushed up Apple's shares over 2%. The WSJ also says there is conflicting news about sales of the latest iPad. Take a look:

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Instagram Expected to Get $500 Million Valuation After New Funding Round

Fri, 16 Mar 2012 15:00:00 EST

Instagram, a popular free iPhone photo sharing app, is expected to be valued at $500 million after a new round of funding. That is a very lofty evaluation and a hugejump from the company's valuation a year ago, which was $25 million. The company only has about 13 employees. The Huffington Post says Instagram has 27 million registered users and is working on an Android app. The Wall Street Journal says some investors are steering clear because of the high evaluation. Instagram is working on building a large user base first before embarking on any monetizing strategies. Take a look:

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Yelp Regains IPO Price

Tue, 13 Mar 2012 15:00:00 EST

Yelp [NYSE: YELP] jumped 60% from the opening price on its first day of trading on the New York Stock Exchange on March 2. Yelp CEO Jeremy Stoppelman, along with members of the company's management team and employees from the NY office, rang The Opening Bell to celebrate Yelp's IPO and first day of trading on the NYSE.

Yelp's shares fell back under 20 last week (over 20% off its opening day close), but today Yelp's shares are back over 23, so it has managed to hold onto most of its IPO opening day gains nearly two weeks out.

THe Wall Street Journal noted after Yelp's IPO that stocks like these can remain volatile for several months after debuting on the stock exchange. Take a look:

Photo: Business Wire/Yelp

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Apple's Market Cap Exceeds $500 Billion Mark

Wed, 29 Feb 2012 17:11:00 EST

Apple's (AAPL) market cap crossed the $500 billion market today when its shares climbed another 1.3%. Apple is the sixth company in history to reach the $500 billion market cap plateau. It is the only company currently valued at $500 billion. The high flying tech company will announce the iPad 3 on March 7th. The Wall Street Journal says analysts are still bullish about the stock despite the high numbers and high valuation. Take a look:

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Dow Finally Closes Above 13,000

Tue, 28 Feb 2012 14:00:00 EST

The Dow Jones industrial average finally edged over the 13,000 mark today. It was the first time since May 2008 (before the fiscal crisis) the Dow has closed over 13,000. The Dow was up over 24 points on the day. It closed at 13,005.12. You can see a chart here.

The milestone is good news for the stock market, but there are still lots of economic problems to be concerned with. Oil is still trading very high and it is sending gas prices up and up, which is likely to reduce consumer spending. National home prices fell to mid-2002 lows in the final quarter of 2011. Reuters also notes that durable goods orders fell by the most in 3 years in January. Take a look:

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Berkshire Hathaway Selects Successor for Warren Buffett But Won't Say Who It Is

Mon, 27 Feb 2012 21:00:00 EST

Berkshire Hathaway has selected a successor to CEO Warren Buffett, 81, but they won't say who it is. Buffett also won't say who it is. He says the person selected doesn't even know they have been selected. Reuters reports that this information that a successor exists was shared in the annual investor letter from Warren Buffett. The Wall Street Journal says Berkshire Hathaway shareholders they have talked to are not happy they don't know who the successor is going to be. Take a look:

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Yelp Plans to Raise $100 Million from IPO

Sat, 18 Feb 2012 13:00:00 EST

Bloomberg reports that Yelp plans to raise up to $100 million from its IPO offering. Yelp will offer 7.15 million share for $12 to $14. on March 1st. It will trade on the NYSE under the ticker symbol YELP.

Yelp provides reviews of businesses and services. According to Yelp's stats page, it has 66 million monthly visitors and 25 million reviews. They also say they have 5.7 million monthly unique visitors on its apps.

The Wall Street Journal's Lynn Cowan says Yelp is not profitable and never has been. She does say Yelp's revenue is growing. Take a look:

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Zynga Posts Loss in First Earnings Report as Public Company

Wed, 15 Feb 2012 18:00:00 EST

Zynga - the company behind FarmVille and other social games - posted a lost of $435 million during its first earnings report as a public company. However, the company did report a 59% increase in revenues. Investors did not like the news and the stock fell about 14%. Shayndi Raice of The Wall Street Journal says Zynga had to pay out restricted stock units to employees, which was triggered by the IPO. ITWorld says this was a one-time $510 million expense. Zynga's research and development expenses also climbed. Take a look:

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5-Year-Old Girl Identifies Logos of Major Brands

Wed, 1 Feb 2012 15:00:00 EST

Here is a unique perspective on logos of major brands from a 5-year-old girl. The girl is the daughter of Adam Ladd, a graphic designer from Cincinnati. She knows McDonald's, The Apple Store, Nike and a few others. She says the McDonald's logo is an "M made out of fries." Take a look:

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RadioShack Shares Tumble Following Profit Warning

Mon, 30 Jan 2012 21:15:00 EST

RadioShack warned that it expects its fourth quarter earnings to come in well below analysts expectations. The Street says analysts are expecting profits of 37 cents a share on average. RadioShack warned it only expects 11 to 13 cents a share for the quarter ending December 31.

The Wall Street Journal reports that RadioShack shares plunged 19% in after hours trading.

Reuters reports that RadioShack's problem is slow sales of Sprint wireless devices. RadioShack has growth with Verizon, AT&T and in tablets and e-readers, but this growth was not enough to overcome the large decrease in Sprint sales.

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Traders Trade is Now on Google+

Sat, 14 Jan 2012 17:04:00 EST

Traders Trade now has a Google+ page on Google+. Google+ is a new social network from Google. You can follow us on Google+ by clicking on the Google+ button below and adding us to one of your circles.

Traders Trade is also on Facebook and Twitter.

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Fed's Quarterly Interest Rate Forecasts to Begin Later This Month

Tue, 3 Jan 2012 15:00:00 EST

The Federal Reserve plans to provide quarterly updates to the public about its how long it will keep short-term interest rates at record levels. The rate forecasts will start later this month. The Fed currently plans to keep the record low short-term rate through mid-2014. Low interest rates make it difficult for people to earn very much money through savings accounts or CDs. Take a look:

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GDP Climbs 2.5% in Third Quarter

Fri, 28 Oct 2011 18:00:00 EST

The Gross Domestic Product (GDP) grew by 2.5% in the third quarter. This is the fastest pace in over a year. GDP grew by just 1.3% in the 2nd quarter. This is according to an advance estimate released by the Bureau of Economic Analysis.

The economy is probably not a strong as the 2.5% suggest. Barrons reports that Americans appear to be dipping into savings to pay for purchases. Income is also trending lower.

Take a look:

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Netflix Shares Plunge 35%

Tue, 25 Oct 2011 18:00:00 EST

Netflix lost 800,000 subscribers since June. The huge loss in subscribers did not impress investors, who dumped the stock today. Netflix shares (Nasdaq: NFLX) plunged 35% on Tuesday. Some analysts have been lowering targets for Netflix. The Wall Street Journal reports that the company believes it still has plenty of working capital. Netflix has a cash level of $366 million. Take a look:

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Hulu Decides Not to Sell Itself

Thu, 13 Oct 2011 15:00:00 EST

Hulu has decided not to sell itself after months of talks with possible buyers. Hulu's owners released a joint statement about the decision to terminate the sale process:

The following is a joint statement from Hulu owners News Corporation, Providence Equity Partners, The Walt Disney Company and the Hulu senior management team:

"Since Hulu holds a unique and compelling strategic value to each of its owners, we have terminated the sale process and look forward to working together to continue mapping out its path to even greater success. Our focus now rests solely on ensuring that our efforts as owners contribute in a meaningful way to the exciting future that lies ahead for Hulu."

Reuters reports that bids ranged from $500 million to $2 billion and possible buyers include Google, Amazon, DirecTV and DISH.

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UBS CEO Oswald Grubel Resigns Following Loss From Rogue Trading

Sat, 24 Sep 2011 11:00:00 EST

UBS CEO Oswald J. Grubel has resigned from the bank following the unauthorized trading that cost the company $2.3 billion. Sergio P. Ermotti has been named Group CEO on an interim basis following Grubel's resignation.

UBS Chairman Kaspar Villiger said in a statement, "The Board regrets Oswald Grubel's decision. Oswald Grubel feels that it is his duty to assume responsibility for the recent unauthorized trading incident. It is testimony to his uncompromising principles and integrity. During his tenure, he achieved an impressive turnaround and strengthened UBS fundamentally. He steps down having helped make UBS one of the world's best capitalized banks. On behalf of the Board of Directors, I extend my heartfelt gratitude to him for everything he has done for UBS. I would like to thank Sergio Ermotti for taking over the interim leadership of UBS. With his extensive industry experience and together with the executive leadership team he will continue to implement UBS's strategic alignment."

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Stocks Plunge on Fed's Pessimistic Assessment of U.S. Economy

Thu, 22 Sep 2011 14:00:00 EST

Stocks are down this morning following an assessment from the Fed that a short term recovery is not in the cards. The Fed also says the U.S. economy has "significant downside risks to the economic outlook, including strains in global financial markets."

The assessment is not really surprising given the lack of jobs created over the past two years, but investors didn't like it. The Dow is down over 3% (337 points) and the Nasdaq and S&P 500 are each down by over 2.5%. Markets in Asia and Europe are also trading in negative territory. Take a look:

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UBS Shares More Details on $2.3 Billion Loss From Unauthorized Trading

Sun, 18 Sep 2011 14:00:00 EST

UBS shared more information today on the massive $2 billion in unauthorized trading that occured under its nose. The trading was conducted by a trader in its Global Synthetic Equity business in London. The trader in question, Kweku Adoboli, 31, was charged by UK authorities with fraud. The Guardian says Adoboli faces charges of " including dishonestly falsifying a record of an exchange traded fund and false accounting."

In its statement today, UBS says the loss from the unauthorized trading is $2.3 billion. UBS says the massive $2.3 billion loss resulted from unauthorized speculative trading in various S&P 500, DAX, and EuroStoxx index futures over the last three months.

We have now covered the risk resulting from the unauthorized trading, and the equities business is again operating normally within its previously defined risk limits. The loss arising from this matter is USD 2.3 billion. As previously stated, no client positions were affected.

The loss resulted from unauthorized speculative trading in various S&P 500, DAX, and EuroStoxx index futures over the last three months. The positions taken were within the normal business flow of a large global equity trading house as part of a properly hedged portfolio. However, the true magnitude of the risk exposure was distorted because the positions had been offset in our systems with fictitious, forward-settling, cash ETF positions, allegedly executed by the trader. These fictitious trades concealed the fact that the index futures trades violated UBS's risk limits.

Following inquiries directed to him by UBS control functions that were reviewing his positions, the trader revealed his unauthorized activity on September 14, 2011.

The father of UBS trader Kweku Adoboli says he does not question his son's integrity. He says it could be a mistake. Take a look:

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UBS Lost $2 Billion in Unauthorized Trading

Thu, 15 Sep 2011 03:00:00 EST

Swiss bank UBS announced today that it lost $2 billion in unauthorized trading. The company released the following brief statement.

UBS has discovered a loss due to unauthorized trading by a trader in its Investment Bank. The matter is still being investigated, but UBS's current estimate of the loss on the trades is in the range of USD 2 billion. It is possible that this could lead UBS to report a loss for the third quarter of 2011. No client positions were affected.

Bloomberg reports that UBS shares fell as much as 9.6% in Swiss trading. The shares recovered some in later trading, but were still down 6.3%.

Investors are going to need a better explanation for a $2 billion loss than the one given by UBS. Details will be needed as to how an employee was able to blow $2 billion and what UBS is doing to prevent this from ever happening again.

Reuters has provided a good roundup here of past trading losses by major banks, such as the Barings collapse in 1995 after a future traders lost $1.4 billion in derivatives trading.

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August 2011 Was Worst August for Stocks in Ten Years

Wed, 31 Aug 2011 21:00:00 EST

A rally at the end of the month helped offset a very tough month for stocks. Investors will be happy to see August go. CNBC reports that the major stock indexes logged their worst August in ten years. The Dow lost 4.36% in August, the Nasdaq lost 6.42% and the S&P was down 5.68%. The Dow is now barely in positive territory with a 0.31% gain on the year. The Nasdaq and S&P 500 are both in the red.

CNBC also reports that statistically September is the worst month out of the year for the Dow and the S&P 500. It has historically been a better month for the Nasdaq. None of this historical data really helps indicate what will happen in September 2011.

The major news of the day was the government filing suit to stop the AT&T's acquisition of T-Mobile. The jobs report could make a big impact on the stock market on Friday. Take a look:

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S&P Downgraded Google to Sell Because of Motorola Deal

Fri, 19 Aug 2011 21:00:00 EST

Google is currently trading near the $500 mark. S&P downgraded Google three days ago from Buy to Sell. The S&P also cut its target for Google to $500 from $700, which is not much better than it is trading now.

A Forbes article lists several reasons from S&P analyst Scott Kessler about why S&P downgraded Google. It has everything to do with the fact the S&P does not think the Motorola acquisition is good for Google.

S&P thinks the Motorola deal will not close as quickly as Google believes. They also don't think it will completely solve Google's patent issues. They also don't like Google in hardware and think the merger may scare off some of Google's Android partners.

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Stocks Tumble on Philly Fed Data, Morgan Stanley GDP Downgrade

Thu, 18 Aug 2011 10:00:00 EST

Stocks dived into the red this morning. There has been a slight recovery. The DOW is down over 440 points (nearly 4%) and the S&P 500 and Nasdaq are both down over 4%.

Two news items are impacting stocks this morning. Reuters reports that the Philadelphia Federal Reserve Bank said its business activity index dropped to minus 30.7 from positive 3.2 the month before. This activity level was also far below forecasts. Analysts were expecting a positive 3.7.

The other negative news item is that Morgan Stanley has slashed its 2011 and 2012 GDP estimates. Morgan Stanley cut growth for 2011 to 3.9% from 4.2%. The also reduced the 2012 GDP forecast from 4.5% to 3.8%. CNBC reports that Morgan Stanley also sees the U.S. and Europe as being "dangerously close to a recession."

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DOW Down Over 450 Points

Mon, 8 Aug 2011 13:00:00 EST

The DOW has plunged over 400 points today following S&P's downgrade of U.S. debt. Worries about the Europe's financial problems are also weighing down stocks.

With two hours remaining in trading the DOW is down over 450 points, nearly 4%. The DOW has fallen below the 11,000 mark. The S&P 500 and Nasdaq are both down nearly 5%.

The plunge follows last Friday's awful day for stocks, where the DOW fell over 500 points.

CNN Money reports that experts ay the downgrade itself should not matter. They say the U.S. still has a strong credit rating.

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Stocks Plunge on Economic Concerns. Dow Drops 513 Points.

Thu, 4 Aug 2011 19:44:00 EST

Stocks plunged today on economic concerns. There is the concern that the U.S. economy will fall back into a recession. There are also concerns about major debt troubles in Spain and Italy. Tomorrow's job report is also expected to be weak, which will not help Wall Street. ADP is forecast growth of 114,000 jobs, but its estimates were way over in June.

It was an ugly day for the Dow, S&P 500 and Nasdaq. The Dow fell 513 points, which is the ninth biggest point drop on record. It is also the biggest drop since Oct. 22, 2008, when it lost 514 points.

The Dow fell by 4.31%. The percentage drops were even bigger for the S&P 500, which fell by 4.78%, and the Nasdaq, which fell by 5.08%. Investors will likely be relieved when this week is finally over.

Media stocks were particularly hammered today. CBS fell over 9%. Comacst and Time Warner each lost over 4%.

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Web.com to Acquire Network Solutions

Wed, 3 Aug 2011 21:00:00 EST

Web.com, a provider of internet services for business, has announced it will acquire Network Solutions, a provider of website services and domain names. Network Solutions is one of the original providers of domain names. Web.com paid $405 million in cash for Network Solutions, plus 18 million shares of Web.com common stock. Network Solutions is currently majority owned by General Atlantic LLC.

David Brown, Chairman and CEO of Web.com, said, "Our integration strategy will be similar to our successful acquisition of Register.com, and we will be in a strong position to cross-sell and up-sell our services to Network Solutions' approximately two million retail customers and hundreds of thousands of wholesale customers."

Tim Kelly, CEO of Network Solutions, said in a statement, "Network Solutions has been a pioneer in this industry for nearly 30 years. We are very excited to combine our expertise, resources, customers and award winning customer service with Web.com."

This is the second big purchase of a leading doman name provider this summer. GoDaddy was sold to a group of three private-equity firms in July for $2.25 billion.

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U.S. Debt Concerns, Slow GDP Growth Sink Dow for 6th Straight Day

Fri, 29 Jul 2011 14:00:00 EST

The DOW fell for the sixth straight day today. It ended the week with a drop of 69.9 points (.79%). The Nasdaq and S&P 500 also fell. Fox Business calls the week the worst week in twelve months. The DOW and S&P were both up 2.2% for the month, but there are real concerns about the economy with these new GDP numbers.

The GDP climbed a weak 1.3% in the second quarter. This was way off the 1.8% economists were expecting. The first quarter GDP was revised down to a meager 0.4%. At least the weak GDP now coincides with the tepid job growth this year.

The Wall Street Journal reports that very week GDP number has renewed concerns that the economy will fall back into a recession. Justin Wolfers, an economist at the University of Pennsylvania's Wharton School, told the WSJ, "This puts a double dip back on the table."

If things do not improve quickly it is going to be impossible for any fourth quarter retail boom to occur. Without any economic improvement there is no reason to expect holiday 2011 to be any better than holiday 2010. It might even be worse if people have had to dig deeper into savings and cost cut even more than they did in 2010.

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Follow Traders Trade on Social Media

Mon, 11 Jul 2011 15:00:00 EST

You can keep up with the latest business news from TradersTrade.com by following us on Facebook and Twitter. Our Facebook page is located here and our Twitter page is @businessnews.

Writers Write, Inc., the publisher of traderstrade.com, also runs blogs covering books, games, health, science, shopping, technology and more. You can find the Facebook and Twitter accounts for all of our blogs at wwfeeds.com.

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Report: Twitter Now Valued at $7 Billion

Tue, 5 Jul 2011 15:00:00 EST

Twitter's valuation continues to soar despite its lack of profits. Emir Afrati reports for the Wall Street Journal that the company now has a value as high as $7 billion. Afrati says Twitter is expected to make $150 million in ad revenue this year. That's not anywhere near enough to justify the lofty valuation. However, the company is working on a new ad model that could help give its revenues a big boost. Afrati says the company is not in an IPO rush. Take a look:

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Specific Media, Justin Timberlake to Try and Bring Sexy Back to Myspace

Thu, 30 Jun 2011 18:00:00 EST

Specific Media has acquired Myspace from News Corporation. News Corporation will take a minority equity stake in Specific Media as part of the agreement. Terms of the agreement were not disclosed, but Myspace was reportedly sold for $35 million, a fraction of the $580 million News Corp paid for it.

Tim Vanderhook, Specific Media CEO, says, "Myspace is a recognized leader that has pioneered the social media space. The company has transformed the ways in which audiences discover, consume and engage with content online. There are many synergies between our companies as we are both focused on enhancing digital media experiences by fueling connections with relevance and interest. We look forward to combining our platforms to drive the next generation of digital innovation."

Justin Timberlake reportedly has a stake in Specific Media. Maybe he can bring some sexy back into Myspace. The timing may also be good for Myspace to attempt a comeback with Google launching its Google+ social network.

Specific Media said in a statement, "As part of the deal, Emmy and Grammy winning artist Justin Timberlake will also take an ownership stake and play a major role in developing the creative direction and strategy for the company moving forward. Specific Media and Timberlake plan to unveil their vision for the site in an exclusive press conference later this summer."

Take a look:

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Stocks Extend Slump to Six Weeks, Longest Since 2002

Fri, 10 Jun 2011 15:00:00 EST

This week was another down week for the U.S. stock market. The DOW fell 172 points (1.42%) to close below 12,000. It is the first time the DOW has dropped below 12,000 since March, 2011. The Nasdaq ended down 41 points (1.53%) and the S&P closed at 1277, down 1.1% on the day.

The Wall Street Journal reports that this is the longest slump for hte market since six weeks. USA Today reports that the DOW has lost 5% this month.

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James Altucher Thinks Dow is Going to 20,000

Thu, 2 Jun 2011 21:00:00 EST

James Altucher thinks The Dow is going to 20,000 within the 12 to 18 months. However, he doesn't think people should buy stocks. He thinks it is far too difficult for most people. He also thinks it is mostly a scam and says he would "never ever trust any number that comes out on a 10Q, no matter how GAAP compliant it is."

His advice for those who insist on buying stocks is to buy an index fund and hold on to it. He also says wait for another crash like 2008 and buy a big basket of funds and hold on to them. Take a look:

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Home Prices Continue to Fall

Tue, 31 May 2011 14:00:00 EST

U.S. home prices are continuing to fall with no end in sight. National home prices hit a new low in the first quarter of 2011 according to the S&P/Case-Shiller Home Price Indices. Home prices fell 4.2% in the first quarter of 2011. This follows a 3.6% drop in Q4 of 2010. Home prices are now back to mid-2002 levels according to the Case-Shiller index. The Q1 results were down 5.1% when compared to Q1 2010.

The 20-city composite index fell below its April 2009 low and twelve of the cities on the index posted new lows in March. The chance of a double-dip in the housing market also appears to be increasing.

Image: Standard & Poor's & FiServ

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Cardnetics Makes Business Cards With an Iris in the Center

Fri, 27 May 2011 15:00:00 EST

A company named Cardnetics has created a business card that has a movable iris in the middle of it. The cards could be good for those looking to stand out from the crowd. Some corporate logos will work better for the iris than others. The company also makes greeting cards with an iris. Take a look:

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LinkedIn IPO Shares Soared on Opening Day

Fri, 20 May 2011 18:00:00 EST

LinkedIn is a social network for business professionals. LinkedIn surprised the market Thursday by doubling its shares on the first day of trading. LinkedIn more than doubled its initial offering price of $45 and closed at $94.25. LinkedIn held most of its gains and closed at $93.09 on Friday. Take a look:

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Dr. Michael Pantalon Explains How to Influence People in New Book

Wed, 11 May 2011 14:00:00 EST

Psychologist Dr. Michael Pantalon has a book out called instant Influence. In the book, Pantalon promises to teach you how to get anyone to do anything fast. In this clip, Dr. Pantalon explains how irrational questions work better than rational questions to influence people. Take a look:

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Apple, Google Top Millward Brown's 100 Most Valuable Global Brands Chart

Mon, 9 May 2011 15:00:00 EST

Millward Brown has released its annual rankings of the top 100 most valuable global brands. Apple topped the list with a brand value of $153.3 billion and $84 growth from the year before. Google was second with a valuation of $111.5 billion. Google fell 2% from last year. IBM was 3rd with a valuation of $100.8 billion.

McDonald's, Microsoft, CocaCola, AT&T came in 4,5,6 and 7th.

You can see the complete top 100 chart here. The full report from Millward Brown can be found here.

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Report: Starbucks Now 3rd Largest U.S. Restaurant Chain

Fri, 6 May 2011 15:00:00 EST

Starbucks is now the third largest restaurant chain according to Technomic's annual listing of the top 500 U.S. restaurant chains in total U.S. sales. McDonald's is #1 and Subway is #2. Starbucks jumped past Burger King and Wendy's to grab the #3 slot.

The report also indicates that Five Guys Burgers and Fries is the fadtest growing chain in restaurant chains will sales over $200 million. Five Guys achieved torrid sales growth of 38% in 2010 vs. 2009.

Here is the Top 5 List of Top U.S. Restaurant Chains.

McDonald's
Subway
Starbucks
Burger King
Wendy's

Photo: Starbucks Corporation

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Weird Trade of Apple Shares Canceled

Wed, 4 May 2011 21:00:00 EST

Reuters report that there was a weird trade in Apple shares yesterday. A trade of just 100 shares was executed at $321.87, which was 7.5% lower than the closing price for Apple shares on Tuesday. Reuters says there were also unusual Apple trades on February, 2010 when Apple shares suddenly dipped 2% and then recovered minutes later.

The freaky trading in Apple shares is reminiscent of the May 6 flash crash last year. Like the flash crash, this could be a glitch or it could be market manipulation. Either way it is disturbing.

Seeking Alpha reports that there was also a flash crash in Jazz Pharmaceuticals on April 27.

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Silver Surged 28% in April. Its Biggest Monthly Gain in 28 Years

Fri, 29 Apr 2011 21:00:00 EST

Bloomberg is reporting that silver climbed 28% in April - its biggest monthly game in 28 years. Silver was helped by a tumbling dollar.

There is debate about where silver goes from here. An article here says a 4,500-year-old ratio will enable silver to soar as the gold to silver ratio stabilizes. Meanwhile, Motley Fool warns silver will fall by 66%.

Silver climbed 4% on Thursday alone on the tumbling dollar. Reuters has rounded up some comments from analysts. One analyst says silver has the possibility to be "more aggressive and outperform gold."

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GDP Rises Just 1.8% in Q1 2011

Thu, 28 Apr 2011 14:00:00 EST

U.S. GDP rose a meager 1.8% in the first quarter of 2011. This was a slowdown from the 3.1% growth in Q1 of 2010. CNN has a chart of GDP here that shows the past three years.

David "Danny" Blanchflower, a professor of economics at Dartmouth College, says the U.S. GDP does suggest slowing growth. He thought Bernanke's press conference yesterday was a good idea even though Bernanke did not share a lot of information. Take a look:

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LinkedIn Analysis Finds Peter and Deborah are the Top Names for CEOs

Wed, 27 Apr 2011 18:00:00 EST

LinkedIn has released LinkedInsights data that reveals dateabout the top names of CEOs. The LinkedInsights data also found that CEOs in the United States often have four letter names (like Jack and Fred). Howard was the top CEO name in the U.S.

According to the LinkedInsights data, the top five names for male CEOs globally are:

Peter
Bob
Jack
Bruce
Fred

The top five names for female CEOs globally are:

Deborah
Sally
Debra
Cynthia
Carolyn

LinkedIn also found that ales professionals tend to have short names, around four letters (like Chip, Todd and Trey), while engineers tend to have longer names, around six letters (like Rajesh, Jeremy and Andrew). U.S. professionals in the food and restaurant industry tend to have longer French names (like Thierry, Philippe and Laurent).

Dr. Frank Nuessel, the editor of Names: A Journal of Onomastics and a professor of classical and modern languages at the University of Louisville, says, "It's possible that sales professionals in the U.S. and male CEOs around the world use these shortened versions of their name as a way to be more approachable and accessible to potential clients. Interestingly enough, female CEOs appear to prefer to use their full names and not nicknames, which could signify that they want to be taken more seriously and want co-workers to think of them in a more professional light."

Image: LinkedIn

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Britain's Economy Grew 0.5% in First Quarter of 2011

Wed, 27 Apr 2011 13:00:00 EST

The UK's GDP returned to modest growth in the 1st quarter of 2011. The UK GDP was up 0.5%. It is small growth, but it was certainly much better news than the shock contraction in the UK GDP during the last quarter of 2010.

Joe Grice, Chief Executive of the ONS, made the announcement. Take a look:

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Amazon.com's Q1 Results Fail to Meet Analysts Expectations

Tue, 26 Apr 2011 08:00:00 EST

Amazon.com, Inc. announced financial results for its first quarter, which ended March 31, 2011. Net sales increased 38% to $9.86 billion in the first quarter, compared with $7.13 billion in first quarter 2010. Net income decreased 33% to $201 million in the first quarter, or $0.44 per diluted share, compared with net income of $299 million, or $0.66 per diluted share, in first quarter 2010.

The results were weaker than expected. CNET says analysts were expecting earnings of $0.61 per share and Amazon only delivered $0.44 per share.

Jeff Bezos, Amazon founder and CEO, reeled off the company's numerous product launches over the past three months in a prepared statement. Bezos said, "In the last 90 days, we announced Kindle with Special Offers, Kindle Library Lending, Audible audiobooks on Kindle, Appstore for Android, Amazon for Windows Phone 7, Checkout by Amazon in both Germany and the U.K., a Kindle Store in Germany, Cloud Drive, Cloud Player, and Prime Instant Video - just to call out a few of the things we've been working on. We love inventing on behalf of customers and have never been more excited about the long-term opportunities."

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New Home Sales Climb in March, But Way Off Last Year's Numbers

Mon, 25 Apr 2011 15:00:00 EST

New data released by the U.S. Census Bureau shows that home sales climbed 11% in March, 2011 when compared to last month. Last month set a record low number of homes sold at 270,000. 300,000 new single-family homes were sold in March, 2011. It is good to see a bump over February's figures, unfortunately, March 2011's new home sales were still 10.3% below the March 2010 estimate of 384,000.

The Census Bureau also says the median sales price of new houses sold in March 2011 was $213,800. The average sales price was $246,800. The seasonally adjusted estimate of new houses for sale at the end of March was 183,000.

CNN/Money has a chart here showing the new home sales since 1963. The chart makes it obvious that the current level of new home sales is not good. At its peak, 1.4 million new homes were sold in a single month in July, 2005.

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Ben Bernanke to Hold Federal Reserve's First News Conference April 27

Sat, 23 Apr 2011 16:00:00 EST

Federal Reserve Chairman will offer the Fed's first press conference next Wednesday. It is a historical, unprecedented move by the Fed to offer a news conference. MarketWatch's Greg Robb says the Fed is expected to stop its current bond-buying program in June. Robb says people will be listening to Bernanke very closely, especially with the economy stumbling and inflation concerns rising. Take a look:

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Sesame Street to Help Kids Learn Value of Money

Fri, 22 Apr 2011 15:00:00 EST

Sesame Street and PNC Bank have launched a new campaign to help kids learn the value of money and to learn how to save and share. Elmo talked to The New York Times about the project. In one of the new Sesame Street episodes Elmo has the learn the value of waiting and the concept of deferred gratification when he wants to buy a Stupendous Ball. Understanding the value of money is crucial in today's economy.

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Dow Closes Above 12,500 for First Time Since 2008

Thu, 21 Apr 2011 18:00:00 EST

The DOW closed above the 12,500 mark today for the first time since 2008. The Dow industrials climbed 1.3% today. The Nasdaq performed even better, with a 2% climb. Reuters notes that this was also the first positive week for Wall Street in three weeks.

You can see a chart of the DOW for the past five years here on Google.

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Intel Shares Climb 6% After Earnings Surprise

Wed, 20 Apr 2011 14:00:00 EST

Intel shares are up over 6% after they reported a first-quarter profit of $3.2 billion, or 56 cents a share. Intel's revenues for the quarter were $12.85 billion. Analysts had been expecting profit of 46 cents a share.

Intel's shares are still lower than they were earlier this year. You can see a stock chart here on Google finance.

The good news from Intel has fueled a tech rally. The Nasdaq is up nearly 2% on the day, about an hour from closing.

Marketwatch has a story here about why analysts were so off the mark with Intel. The article says the main reason for the surprise was "conflicting views on trends in the personal-computer market."

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Gold Hits Record Intraday High of $1,500

Tue, 19 Apr 2011 12:00:00 EST

Marketwatch reports that gold futures have hit a record intraday mark of $1,500 an ounce. It has since fallen off the mark, but $1,500 is a new intraday receord for gold, according to CME.

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Stocks Fall After US Credit Outlook Cut

Mon, 18 Apr 2011 11:00:00 EST

Standard & Poor's downgraded its credit outlook for the United States today. This means there is the possibility the S&P could cut its long-term rating for the U.S. within two years. Running two major wars for such a long period of time has been very costly.

S&P said in a statement, "Because the U.S. has, relative to its AAA peers, what we consider to be very large budget deficits and rising government indebtedness, and the path to addressing these is not clear to us, we have revised our outlook on the long-term rating to negative from stable."

Stocks have fallen steeply as a result. The DOW is down over 215 points (-1.76%) and the Nasdaq is down about 50 points (-1.84%) as trading approaches midday.

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Facebook Stock Possibly in Your T. Rowe Price Mutual Fund

Sun, 17 Apr 2011 14:00:00 EST

Facebook could be hiding in your mutual fund, if you are invested in a T. Rowe Price fund. A recent disclosure of the funds' holdings as of March 31 shows some T. Rowe Price funds owning stakes in the social media giant.

Mary Pilon, reporting for the Wall Street Journal, says it is a very small amount. None of the social media holdings in any of the T. Rowe price funds are greater than 1%. Facebook, which is not publicly traded, is considered risky since it has not yet proven it can generate revenues large enough to match its $50 billion valuation. Take a look:

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Zippo CEO Greg Booth Talks Extending Brand

Fri, 15 Apr 2011 15:17:00 EST

Zippo CEO Greg Booth talked to Forbes about the Zippo brand. Greg Booth says the company repairs lighters for free. They do it right in front of visitors at the Zippo museum. Booth also discussed how the company extends its brand in other products in a world where smoking is being curtailed and there is pressure on tobacco products. Candle lighters, hand warmers, tiki torchers and gas grills are some product extensions for Zippos. Products not associated with a flame include sunglasses, watches and writing instruments. Take a look:

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Survey of Economists Finds Expectations Surge for Housing Double Dip

Wed, 23 Mar 2011 16:00:00 EST

MacroMarkets LLC has announced the results of its March 2011 Home Price Expectations Survey, which is compiled from 111 responses of a diverse group of economists, real estate experts, investment and market strategists. The survey is based upon the projected path of the S&P/Case-Shiller U.S. National Home Price Index over the coming five years. The survey found a deteriorating outlook, with most experts only expecting a weak recovery by 2013. More experts are also projecting a double-dip.

Robert Shiller, MacroMarkets co-founder and chief economist said, "Overall, the sentiment among our expert panel regarding the U.S. housing market outlook continues to deteriorate. Now they are expecting only a weak recovery, and even that is not until 2013. This uninspiring view must be influenced by the persistently weak market fundamentals - high unemployment, supply overhang, an unabated foreclosure crisis, and constrained mortgage credit."

Terry Loebs, MacroMarkets managing director said the March expectations data are the most pessimistic collected to date, with more experts projecting a double-dip. Loebs said, "Many more experts are now projecting a double-dip after witnessing the double-dead cat bounce that came in the wake of expired government stimulus programs. In December, only 15% of our panelists were projecting that a new post-crash low would materialize for national home prices. Now, just three months later, almost 50% foresee a double-dip happening this year, and not a single panelist expects national home prices to recover to the pre-bubble trend in the coming 5 years."

Image: MacroMarkets LLC

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Existing-Home Sales Slump After Three Months of Gains

Mon, 21 Mar 2011 15:00:00 EST

Just when things are looking better the housing market goes and has a bad month. The National Association of Realtors reports that existing-home sales dropped by 9.6% in February compared to the month before. Existing-home sales in February were down 2.8% when compared to February 2010. The NAR defines existing-home sales as "completed transactions that include single-family, townhomes, condominiums and co-ops."

CNBC notes the the monthly percentage decline was the largest since last July.

The national median existing-home price for all housing types also fell in February. The media price was $156,100 in February, which is 5.2% below February 2010. CNBC says the median price has not been lower since April 2002. NAR's press release, located here, has the data for different regions.

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Lucky Charms Mascot Rings Opening Bell, Stocks Climb

Thu, 17 Mar 2011 20:00:00 EST

Lucky, the leprechaun mascot for General Mills Lucky Charms cereal, rang the opening bell on Wall Street this morning in celebration of St. Patrick's Day. The luck of the Irish was a boon to the markets. The Dow climbed 161.29 points (1.39%) and the Nasdaq climbed 19.23 points (0.73%). Take a look:

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Stocks Fall on News of Violence at Saudi Arabia Protest

Thu, 10 Mar 2011 16:44:00 EST

Saudi police reportedly opened fire on protesters today. Although only one person was injured, the news of protests in Saudi Arabia had a negative impact on stocks. The concern is that protests and riots in Saudi Arabia will drive oil prices even higher. There are also reports that more protests are expected in Saudi Arabia tomorrow.

The DOW is currently down over 220 points, nearly 2%, as the market nears the closing bell. The Wall Street Journal reports that all three major indexes have broken through their 50-day moving averages for the first time since last year.

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Economy Created Just 36,000 Jobs in January

Fri, 4 Feb 2011 18:00:00 EST

The jobless rate fell to 9.0% according to latest jobs report from the Labor Department. However, only 36,000 jobs were created in January. This was very disappointing as economists were expecting 150,000 jobs. The Wall Street Journal has a roundup of thoughts from economists. Some are blaming the weather for the weak jobs report. If that's true the jobs market should rebound in February or March. Take a look:

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Yahoo Shares Up After Takeover Threat

Thu, 14 Oct 2010 22:00:00 EST

Yahoo shares are climbing following a report saying AOL Inc. and a group of private equity firms may bid for the Web company. Bloomberg reports that Yahoo has reportedly hired Goldman Sachs to try and fend off a public takeover. Yahoo was able to fend off a Microsoft takeover in 2008, but may not be successful this time around. Yahoo's shares (YHOO) climbed nearly 4.5% today. Take a look:

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Flash Crash Linked to Single Trading Firm Executing Computerized Selling Program

Fri, 1 Oct 2010 18:00:00 EST

A new government report (PDF file) says the so-called "flash crash" on May 6th was caused by a single trading firm executing a computerized selling program. The firm was trying to sell $4.1 billion of an indexed stock future contract known as an "E-Mini" using a computer program with no human interaction. The flash crash is also known as the The Crash of 2:45. There are more theories on the Flash Crash listed here. Take a look:

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Fed Keeps Interest Rates Unchanged

Tue, 21 Sep 2010 15:00:00 EST

The Fed has decided to leave interest rates unchanged yet again. CNN reports that remain near historic lows between 0% and 0.25%. The Fed said, "the pace of recovery and output and employment has slowed in recent months." The Fed is also concerned about low inflation. Take a look:

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Analyst Says Stocks Need a Catalyst

Sat, 18 Sep 2010 23:00:00 EST

Alan Lancz, director of research at LanczGlobal.com, told Marketwatch that the market needs a catalyst in order to keep climbing.

"We need a catalyst to get over levels that we haven't seen since early April. The M&A front will be very relevant, and could be a negative if that momentum doesn't continue," said Alan Lancz, director of research at LanczGlobal.com.

The Dow is higher now than it was last year at this time, but it is lower than it was earlier this year. Investors will need signs that the economy truly is ready to move foward before the Dow moves to the 11,000 or 12,000 mark. Any signs the economy is not going to strengthen could send stocks in the opposite direction. Holiday retail sales could act a trigger. If they are positive, then stocks could jump. If they are weak or flat then the Dow may fall or continue to meander around the 10,000 to 10,500 mark for another six months.

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Jobless Claims Fall, Trade Deficit Narrows

Thu, 9 Sep 2010 16:00:00 EST

The U.S. economy received some rare good news today. The number of jobless claims fell to a two month low. Even better news was that the trade deficit narrowed to $43 billion in July. Despite the good news stock market gains were fairly small. Take a look:

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Stocks Fall on News of Widening Trade Deficit

Thu, 12 Aug 2010 15:00:00 EST

Asian shares are tumbling following the U.S. sell-off on Tuesday. The Dow Jones industrial average had its biggest loss (-265 points, -2.49%) in six weeks yesterday. The Nasdaq was off 3%. The bad day on Wall Street followed news that the Federal Reserve plans to buy more Treasury Bonds and a widening trade deficit. Take a look:

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AP Economy Survey Projects Weaker Growth in Coming Months

Thu, 29 Jul 2010 18:00:00 EST

A new AP Economy Survey is projecting weaker growth in both the 2nd and 3rd quaters of this year. The AP forecasts a 2nd quarter GDP of 2.8%. The AP Economy Survey indicates that employment and consumer spending will continue to struggle. The majority of economists still believe the economy will recover, but most economists have scaled back growth forecasts. Take a look:

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Piper Jaffray Analyst Gene Munster Thinks Apple, Inc. Growth is Sustainable

Wed, 21 Jul 2010 15:00:00 EST

Apple Inc.'s third-quarter was up 78% ($3.51 a share). Apple's iPhone is facing growing compeition from Android phones. The company's recently launched iPad is also expected to face growing competition from a number of different tables that rival tech firms will launch in time for the holiday shopping season. Despite this Piper Jaffray analyst Gene Munster sill expects Apple's growth to be sustainable. Gene Munster says they estimate Apple will do $75 billion in revenue next year. He thinks there is a lot of room for Apple to grow still in the phone and computer markets. You can watch Bloomberg's video interview with Gene Munster here.

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Goldman Sachs Dodges Bullet With $550 Million Settlement Fine

Sat, 17 Jul 2010 18:00:00 EST

The Wall Street Journal reports that the SEC was split in its Goldman Sachs decision. Goldman Sachs will pay a $550 million fine, but they won't have to admit to fraud, in a settlement with the SEC.

Thursday's settlement-in which Goldman agreed to pay a $550 million fine, but didn't have to admit it committed fraud-capped one of the most closely watched cases in the SEC's 76-year history. The agency had charged Goldman with intentionally duping clients by selling a mortgage-security product that secretly was designed by another Goldman client betting that the housing market would crash.

Suzanne McGee, author of the book, Chasing Goldman Sachs, told Betty Liu on Bloomberg Television that Goldman Sachs dodged a bullet. $550 million sounds like a large amount, but it isn't very big for Goldman Sachs, which makes $13 billion a year. Some analysts also think Goldman Sachs could make $550 million in a week.

Rebecca Jarvis discussed the Goldman Sachs settlement on CBS News. Take a look:

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Stocks Plunge on Weak Job Report

Fri, 4 Jun 2010 14:00:00 EST

The stock market fell today as the May jobs report showed that the private sector is still not adding very many jobs. The weak jobs news, combined with news that Hungary's economy is struggling, sent stocks downward. The Dow fell over 300 points and dipped under 10,000. Take a look:

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Washington Officials Look Into Last Week's Sudden Stock Plunge

Tue, 11 May 2010 18:00:00 EST

The stock market had one of its best rallies in the past couple years on Monday. The really help ease concerns about last week's bizarre blip. Investors hope the 1,000 point freefall never happens again. Washington officials are looking into the matter . The AP says Washington officials will be meeting this week with executives from the New York Stock Exchange and NASDAQ. The exact cause of the sudden downturn is still unknown.

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Citigroup: Greece Debt Could Trigger 20% Correction

Fri, 7 May 2010 18:00:00 EST

Marketwatch reports that Citigroup sees a 20% correction possible because of the financial crisis in Greece.

Citigroup got things off to a bearish start with a prediction that fears of sovereign debt contagion over Greece could trigger a near-term correction of up to 20%.

They said that while there have been financial crises with international implications in the recent past -- Northern Europe in 1992, Southeast Asia and South Korea in 1997 -- the Greek crisis is "graver than these were."

A 20% correction from the Dow's recent peak around 11,200 would be around 8,960. A 20% correction from today's close of 10,380 would be around 8,300.

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Dow Plunges Nearly 1,000 Points, Then Recovers

Thu, 6 May 2010 15:20:00 EST

The Dow dropped nearly 1,000 points today before rebounding. Business Week reports that 998.50 point drop was the biggest since 1987. Percentage wise the drop was 9.2%.

"It's panic selling," said Burt White, chief investment officer at LPL Financial in Boston, which oversees $379 billion. "There's concern that the European situation might cool down global growth and freeze the credit markets."

The Dow lost as much as 998.5 points, or 9.2 percent, before paring its loss to 383.17 points at 3:17 p.m. in New York. The Standard & Poor's 500 Index fell as much as 8.6 percent, its biggest plunge since December 2008, before trimming its decline to 3.6 percent.

The big drop was so huge it looks like some sort of computerized sell-off. The Dow is still over 300 points down - 2.8% according to Google Finance. The Nasdaq is nearly 3% down for the day.

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Paul Volcker: Feds Should Consider VAT

Thu, 15 Apr 2010 18:00:00 EST

Senior White House economic adviser Paul Volcker said Feds should consider a Value Added Tax. This would be a tax in addition to other taxes. It would also make things a nightmare for retailers and businesses when they have to collect money for products and services. Take a look:

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Dow Gains Over 100 Points

Thu, 25 Mar 2010 18:00:00 EST

The DOW continues to make up new ground. It is edging every closer to the 11,000 market. This is still well off its high but a strong climb from the low numbers in 2008. Tim Speiss of Eisner LLC says people who pulled out of stocks last March and never re-entered the market may regret their decision. He admits the possibility of a double-dip recession still exists, but he doesn't think it will happen. Take a look:

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Iran Conflict Could Spike Oil Prices

Sat, 27 Feb 2010 15:00:00 EST

Oil has been trading between the $70 and $80 a barrel mark. That level will create much higher gas prices for drivers this summer, which could impact the economy. The big concern as Fox News reports is that oil prices could spike if there is a major conflict with Iran. On the positive side, it is difficult for Iran to cut off the oil supply by blocking the Strait of Hormuz, because it shoots itself in the foot financially by doing so. Take a look:

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Federal Reserve Keeps Interest Rates Low

Fri, 29 Jan 2010 18:00:00 EST

Despite some inmprovement in the economy (but not in the job market) the Federal Reserve is not ready to start raising interest rates. The Fed plans to keep interest rates at their current very low levels (0 to .25%) for an "extended period" of time. Take a look:

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2010 Begins on Bright Note for Stocks

Tue, 5 Jan 2010 15:00:00 EST

The stock market got off to a great start Monday with a rally on the first day of trading. There were gains in the Dow, Nasdaq and S&P. The Dow was up 155.91 points, or 1.5%, to 10,583.96. Some say this single day bodes well for the entire year. We will see if the January barometer hold true throughout 2010.

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U.S. National Debt Passes Debt Ceiling

Sat, 19 Dec 2009 22:00:00 EST

CBS News reports that the National Debt has passed the statutory Debt Limit.

The latest calculation of the National Debt as posted by the Treasury Department has - at least numerically - exceeded the statutory Debt Limit approved by Congress last February as part of the Recovery Act stimulus bill.

The ceiling was set at $12.104 trillion dollars. The latest posting by Treasury shows the National Debt at nearly $12.135 trillion.

No doubt the government will soon raise the spending limit. You can always find the latest National Debt number here, here and here.

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Oversupply of Champagne Threatens Wine Trade

Sun, 15 Nov 2009 16:15:00 EST

The wine trade is faced with a massive oversupply of champagne due to overproduction and less demand than usual. ITN's Ben King explains. It is somewhat similar to the problem that hit luxury goods, shoes and services. Ben King says the oversupply should push prices down somewhat but premium champagne sellers fear discounting could hurt their brands. Take a look:

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Ford Gains Marketshare on Competitors

Mon, 26 Oct 2009 21:00:00 EST

GM and Chrysler each took bailout money from the government. Ford did not accept any bailout money and managed to gain 5% marketshare from Q3 2008 to Q3 2009 according to Fox Business. They did however take some stimulus money for energy efficient cars. WSJ's Matthew Dolan says we are still just on the heels of the bailout and "2010 will be the real test." Take a look:

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Market Closes Above 10,000

Wed, 14 Oct 2009 22:00:00 EST

The Dow has closed above the 10,000 mark for the first time his year and the first time since since Oct. 3, 2008. The index is still 30% below its peak but it is still an upbeat feeling for investors to see the Dow climb from below 7,000 to back above 10,000.

Like a magnet, Dow 10,000 has emerged as a financial force of nature that attracts and repels stock investors during thrilling bouts of profit-induced euphoria and depressing journeys into money-losing despair. The Dow Jones industrials may climb above 14,000. Perform a 15,000 tease. Or plunge to 6500. But ever since its maiden voyage to 10,000 on March 29, 1999, the 113-year-old stock index with the blue-chip pedigree always seems to end up back at the same place: Dow 10,000.

The market closed Wednesday with the Dow up 145 points to 10,016, its first time above 10,000 in a year. The fact that the Dow, a financial icon with a global following, is again north of that key level is significant because seven months ago it was feeling the full brunt of the financial crisis and trading below 7000 - a 12-year low and 53.8% off its October 2007 record of 14,164.53.

The big question is "What Now?" Investors are hoping the Dow stays about the 10,000 mark but it is certainly possible that it could slip right back below 10,000. Dennis Berman talked to Fox Business about what the market milestone means for investors. As Berman says the number looks good from 6,500 but not so good from 14,000. Take a look:

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Dow Closes at New High for 2009

Sat, 10 Oct 2009 15:00:00 EST

The Dow soared to a new high this week. It climbed 377 points, or 4%, for the week to close at 9864.94.

The Dow climbed four of five sessions this week and ended up 4% over that period, snapping a two-week losing skid.

The market's gains this week have been driven by a promising start to the earnings season from Alcoa, whose shares gained 10% since Monday, and a move by the Reserve Bank of Australia to tighten its key interest rate. Many investors interpreted that move as a sign that the global economy is returning to normalcy following last year's meltdown.

"Much of the earnings we are going to see will depend on the global economy," said Jordan Smyth, a managing director for Edgemoor Investment Advisors. "It seems everyone now expects earnings will continue to exceed expectations and we'll be looking for confirmation that businesses are seeing what we think we're seeing in the economy."

If the Dow climbs to 10,000 that still leaves the index around 30% down from its high point. Even so, many investors will be relieved to see that number again. The stock market seems to indicate the economy is out of the woods but there are still troubling indicators out there in housing, retail and unemployment.

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Dow, S&P, Nasdaq Soared 15% in Q3

Wed, 30 Sep 2009 14:00:00 EST

There is concern going forward but the third quarter was very bullish for stocks. The Dow, S&P 500 and Nasdaq each gained over 15% in the third quarter alone. Reuters says the Dow's performance was the best for a quarter since Q4 of 1998.

For the third quarter, the Dow rose 15 percent, the S&P 500 gained 15 percent and the Nasdaq climbed 15.7 percent. The Dow's performance marked its biggest quarterly gain since the fourth quarter of 1998.

Time will tell if the gains hold. Over the next two quarters people will expect to see stronger signs of a recover. Without them stocks could retreat.

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Swine Flu Could Hold Back Economic Recovery

Fri, 28 Aug 2009 18:00:00 EST

No one knows how bad the H1N1 swine flu outbreak will be when it returns this fall. A White House panel told the President it was feasible that the swine flu could kill 90,000 Americans before the end of the year. The panel's findings were later downplayed. The real concern for the economy will be absenteeism. The Sydney Morning Herald has an interesting article called "Swine flu looms over global economic recovery."

Faced with the unpredictable nature of flu viruses, economists say it is difficult to assess the impact of swine flu on the delicate global economic recovery taking shape amid the worst world recession since World War II.

"As the severity of A(H1N1) is so far not severe, we would not expect the magnitude of the shock to the economy to be large relative to GDP (gross domestic product)," said Simonetta Nardin, a spokeswoman at the International Monetary Fund.

"The main threat to financial stability is the risk that high levels of absenteeism could lead to breakdowns in the functioning of key financial systems," she told AFP.

If a lot of people are out from work at all at once across the country (and even the world) it will be extremely difficult for much to get done. It is hard to schedule meetings and keep appointments when people keep getting sick. Illness can also keep people from shopping, eating out at restaurants and spending money.

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July Was a Great Month For Stocks

Fri, 31 Jul 2009 18:00:00 EST

The stock market turned a solid performance after months of news lows and uncertainy. It wasn't double digit growth but the main indexes Dow, Nasdaq and S&P each climbed greater than 7% during July.

Dow +8.4%
Nasdaq +7.8%
S&P 500 +7.4%

The Wall Street Journal reports that July, 2009 was the best monthly performance for the Dow since October, 2002. Overall the Dow is still over 35% below its peak but at least investors have some renewed confidence seeing the Dow back above 9,000. For the rally to continue we are going to need some good earnings reports and a lack of scary economic figures that cause stocks to trend southward again.

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Bernie Madoff Gets 150 Years

Mon, 29 Jun 2009 18:00:00 EST

Bernie Madoff received a sentence of 150 years. Experts had been predicting that the orchestrator of an enormous Ponzi scheme would get only 30 years. Many famous people were caught up in Madoff's fake financial web. ITN reports that cheers broke out in the court room when the sentence was announced.

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