Yesterday’s earnings wrapup suggested three best bets, Caterpillar, Merck and UnitedHealth Group. All three companies exceeded expectations and posted strong gains. Caterpillar rose nearly 8%, Merck was up +6% and UnitedHealth gained 3%. The Dow and Nasdaq, by contrast, were flat for the… Read More

In late December 2002, the “dot com” bust was complete and the market was about to close the books on its third straight losing year. Bargains were plentiful and the economy was pulling out of a recession, but investors had had enough and many… Read More

Early March 2009 is not only notable for its cheap stocks. It’s also the strongest the dollar has been since 2006. It’s also the strongest it will be for quite some time. At its high on March 5, it took $1.25 to buy a euro. The dollar has since lost… Read More

On July 18th, Companhia Vale do Rio Doce (NYSE: VALE) said it was not interested in acquiring more fertilizer companies. The statement was made after a Sao Paulo newspaper reported the Brazilian mining company was considering a $25 billion buyout of the Minnesota-based… Read More

Apple (Nasdaq: AAPL) turns in its quarterly report card this evening after the closing bell. Its earnings, like any company’s, are all about the past. With Apple, the direction to look is forward. First, the basics: Apple… Read More

When it rains, it pours. And we’ll see how that bodes for the market as Wall Street is deluged with second-quarter earnings reports today, led by five Dow components during the day and culminating with results from Apple after the… Read More

“In the coming year, the Securities and Exchange Commission will complete its examination of the [nation’s rating agencies] role in rating residential mortgage-backed securities and collateralized debt obligations linked to subprime mortgage loans.” So said… Read More

Everything is relative, especially market valuation. A utility, for instance, with its steady, slow-growth business, is never going to command the earnings multiple of a rapidly growing biotech firm or high-tech upstart. That’s why it’s best to make valuation comparisons within industries. It’s also… Read More

J.P. Morgan Chase & Co. (NYSE: JPM) earned $2.7 billion this quarter, up +36% from $2.0 billion in the second quarter of 2008. Morgan earned 28 cents a share, a -47% decline from 53 cents a share a year ago. The results reflected a charge of $1.1 billion, or 27… Read More

ProShares, a leader in “short” and “ultrashort” shares that profit when baskets of stocks fall in price, has released a new fund with a hybrid strategy of buying certain companies and short-selling others. The fund is the ProShares Credit Suisse 130/30 and trades… Read More